A total of 41 ships were reportedly traded over the course of the past week, for a total investment price of $1.75 billion. Ship owners acquired 17 tankers, 12 bulkers, 9 gas tankers, 1 container and 2 special projects, with the average age of the vessels being eight years (2006-built). According to figures compiled by shipbroker Golden Destiny, the above numbers represent an increase of 21% on the week and more impressively of 95% on the year. At similar week in 2013, 21 vessels induced buyers’ interest at a total invested capital of about $283,5 mil. (8 S&P deals in the bulk carrier segment, 3 in the tanker, 1 in the gas tanker, 5 in the liner, 2 in the container and 2 for special projects).
According to the Piraeus-based shipbroker, "tankers held the lion share of this week’s S&P activity -29% share, bulkers -29% share respectively, gas tankers -22% share each, while only one S&P deal reported for containers. The highest invested capital is reported in the gas tanker segment for more than $1bn, due to a large enbloc deal for LNG vessels". In the dry bulk market, the 12 deals concluded represented an increase of 71% on the week and 50% on the year. The total invested capital was in the region of $192 mil, while the average age of vessels sold was 9 years old (built 2005). The largest S&P activity was reported in the handysize segment with strong buying interest for Chinese built resales.
In a separate report, Lion Shipbrokers noted that the latest lackluster performance of the Baltic Dry Index (BDI) has not deterred buying interest. In the dry bulk market, Lion noted that "three panamaxes changed hands this week at firm levels; Greek buyers have purchased Taiwanese built GIUSEPPE RIZZO (77K BLT 2004 CSBC/TAIWAN) for $18.2 mill and three year older but Japanese built ORSOLINA BOTTIGLIERI (75K BLT 2001 HITACHI/JAPAN) for $18.5 mill. At an auction in New Orleans, the highest bid for Chinese built panamax UTOPIE (75K BLT 2008 HUDONG/CHINA) was a firm $23.75 mill by undisclosed interests. In an off market deal, prompt resale supramax AMIS ELEGANCE (55K DELY JAN 2015 KAWASAKI/JAPAN CR 4X30T) attracted a solid $31 mill, commanding a premium of $2-$3 mill compared with Chinese built units".
Meanwhile, in terms of demolition activity, according to Lion Shipbrokers, "the Subcontinent market is stable at healthy levels, making demolition a very attractive option for older tonnage out there; India remains bullish attracting the majority of ships for one more week. China is back to business, paying soft levels in the low-mid $300, while Turkey has also softened, still paying levels in excess of $300".
From its part, Golden Destiny noted that "scrapping price momentum is improving week-on-week with container vessels of panamax size fetching very firm prices at excess $450/ldt in India. The Indian subcontinent region is now offering very strong levels from an improvement in domestic steel prices and currencies against US, but demand from owners for disposal remains low in the bulker and tanker segment. Benchmark scrap prices in the Indian subcontinent region are now $10-$20/ldt more than the beginning of January staying at levels excess of $400/ldt since November last year".
According to the shipbroker's report, there were a total of 18 ships scrapped, with a total deadweight of 1,540,566 tons (5 dry bulk carriers, 4 tankers, 3 liners and 6 containers). Demolition activity was up by 38% on the week, a significant increase achieved by large increases in the three main conventional segments (up by 67% week-on-week in the bulkers, up by 100% week-on-week and up by 50% week-on-week).
"In terms of deadweight sent for scrap, there has been 272% weekly decrease with 9 demolition deals reported for large vessel size categories, 2 in the bulker-capesizes, 2 in the tanker-VLCCS and 5 in the container- panamax segment (4,000-5,000TEU). India is reportedly to have won 10 of the 18 demolition transactions, Bangladesh 4, China 1, while no activity is reported for Pakistan. Benchmark scrap prices in the Indian subcontinent region: $415-430/ldt for dry and $445-$460/ldt for wet cargo. Scrap prices in China hover at $340/ldt for dry and $350/ldt for wet cargo. $495/ldt in India. At a similar week in 2013, demolition activity was down by 44%, in terms of the reported number of transactions, when 10 vessels had been reported for scrap of total deadweight 281,766 tons with 2 disposals for bulkers, 3 tankers, 2 liners, 2 containers and 1 Ro-Ro. Ship-breakers in Indian subcontinent region had been offering lower levels of the current year, $385-400/ldt for dry and $420/ldt for wet cargo", Golden Destiny concluded in its report.
According to the Piraeus-based shipbroker, "tankers held the lion share of this week’s S&P activity -29% share, bulkers -29% share respectively, gas tankers -22% share each, while only one S&P deal reported for containers. The highest invested capital is reported in the gas tanker segment for more than $1bn, due to a large enbloc deal for LNG vessels". In the dry bulk market, the 12 deals concluded represented an increase of 71% on the week and 50% on the year. The total invested capital was in the region of $192 mil, while the average age of vessels sold was 9 years old (built 2005). The largest S&P activity was reported in the handysize segment with strong buying interest for Chinese built resales.
In a separate report, Lion Shipbrokers noted that the latest lackluster performance of the Baltic Dry Index (BDI) has not deterred buying interest. In the dry bulk market, Lion noted that "three panamaxes changed hands this week at firm levels; Greek buyers have purchased Taiwanese built GIUSEPPE RIZZO (77K BLT 2004 CSBC/TAIWAN) for $18.2 mill and three year older but Japanese built ORSOLINA BOTTIGLIERI (75K BLT 2001 HITACHI/JAPAN) for $18.5 mill. At an auction in New Orleans, the highest bid for Chinese built panamax UTOPIE (75K BLT 2008 HUDONG/CHINA) was a firm $23.75 mill by undisclosed interests. In an off market deal, prompt resale supramax AMIS ELEGANCE (55K DELY JAN 2015 KAWASAKI/JAPAN CR 4X30T) attracted a solid $31 mill, commanding a premium of $2-$3 mill compared with Chinese built units".
Meanwhile, in terms of demolition activity, according to Lion Shipbrokers, "the Subcontinent market is stable at healthy levels, making demolition a very attractive option for older tonnage out there; India remains bullish attracting the majority of ships for one more week. China is back to business, paying soft levels in the low-mid $300, while Turkey has also softened, still paying levels in excess of $300".
From its part, Golden Destiny noted that "scrapping price momentum is improving week-on-week with container vessels of panamax size fetching very firm prices at excess $450/ldt in India. The Indian subcontinent region is now offering very strong levels from an improvement in domestic steel prices and currencies against US, but demand from owners for disposal remains low in the bulker and tanker segment. Benchmark scrap prices in the Indian subcontinent region are now $10-$20/ldt more than the beginning of January staying at levels excess of $400/ldt since November last year".
According to the shipbroker's report, there were a total of 18 ships scrapped, with a total deadweight of 1,540,566 tons (5 dry bulk carriers, 4 tankers, 3 liners and 6 containers). Demolition activity was up by 38% on the week, a significant increase achieved by large increases in the three main conventional segments (up by 67% week-on-week in the bulkers, up by 100% week-on-week and up by 50% week-on-week).
"In terms of deadweight sent for scrap, there has been 272% weekly decrease with 9 demolition deals reported for large vessel size categories, 2 in the bulker-capesizes, 2 in the tanker-VLCCS and 5 in the container- panamax segment (4,000-5,000TEU). India is reportedly to have won 10 of the 18 demolition transactions, Bangladesh 4, China 1, while no activity is reported for Pakistan. Benchmark scrap prices in the Indian subcontinent region: $415-430/ldt for dry and $445-$460/ldt for wet cargo. Scrap prices in China hover at $340/ldt for dry and $350/ldt for wet cargo. $495/ldt in India. At a similar week in 2013, demolition activity was down by 44%, in terms of the reported number of transactions, when 10 vessels had been reported for scrap of total deadweight 281,766 tons with 2 disposals for bulkers, 3 tankers, 2 liners, 2 containers and 1 Ro-Ro. Ship-breakers in Indian subcontinent region had been offering lower levels of the current year, $385-400/ldt for dry and $420/ldt for wet cargo", Golden Destiny concluded in its report.