Friday, 11 May 12 POLITICAL CHANGES COULD LEAD TO TEMPORARY HALT IN SHIPPING INVESTMENTS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The potential of changes of political leadership in many of the world’s leading economies could very well lead to significant shifts in the direction of their economies said Gibson in a recent report, concluding that the fact that two leading economies like China and US will hold presidential elections towards the end of the year, will have a massive influence on world trade and subsequently one would expect many multinational companies to postpone investment decisions until they see what kind of leadership they will get. This perceptibly means that the freight markets can expect little stimulus from this quarter in the short term said Gibson.
In terms of concluded deals and trends in the sale and purchase market for dry bulk carriers, Gibson noted that “with a steady albeit slow stream of sales being concluded in the last few weeks ranging from handy to capesize it does appear that some buyers feel there is little room for prices to go lower. This does conflict with reports that we can expect a large amount of tonnage still to come from Japan which will undoubtedly put pressure on prices. Notable sales of the week are of the four Vogemann panamax bulkers namely the "VOGE PRESTIGE" and "VOGE PROSPERITY" (75,100 dwt/blt 1996/95 Burmeister & Wain, Denmark) for US$17.5m enbloc and the "VOGETRADER" and "VOGEVOYAGER" (72,171 dwt/blt 1996 Hitachi, Japan) at US$21.5m. These sales certainly illustrate, despite the slight age difference, the premium Japanese built shallow drafted vessels can obtain over their European counterparts, also it is worth noting the Japanese units will have better speed and consumption figures which understandably is a major factor with bunker prices as they are today” said Gibson.
Regarding the tanker market for second hand vessels, Gibson mentioned that “as Golden week and Labour Day holidays have dulled the market flow of fresh tonnage this week, the sales tally tells a somewhat more vibrant tale. Notably, Polembros appears to be back at the fore with a dedicated war chest for late 90s built large crude tankers. Firstly, the Greek owner has been rumoured to have picked up the suezmax pair m/t “NAVIGA + NAUTIC” (149,999 dwt/blt 1998 NKK) for a combined US$30.5m, providing a very useful benchmark for such units in view of the lack of any directly comparable sales over the last 6 months. In addition, the Greek owner is also freshly touted to have picked up the m/t “BUNGA KELANA SATU” (105,575 dwt/blt 1997 Hyundai) for US$9.5m, mirroring the price also associated with the still unconfirmed sale of m/t “TAIYOH III” (95,666 dwt/blt 1997 Imabari). Applying a similar timescale, it's worth noting how aframax prices have softened in recent months, with Polembros reported to have paid US$12.1m for the not dissimilar “ESTEEM GRANDEUR” (105,426 dwt/blt 1997 Namura) back in November 2011” stated Gibson.
“The products sector continues a buzz with chatter suggesting a few vessels either committed or close to being so. Korean built m/t “MAERSK CLARISSA” is rumoured to have been tied up on subjects to Dileton Maritime for a punchy US$11m, whereas the Chinese built m/t “SELENDANG MUTIARA” (45,974 dwt/blt 1997 Dalian) may have been sold for US$8.4m to undisclosed buyers, exemplifying the value difference between the two ship-building nations. A same-aged sister vessel “SELENDANG PERMATA” reportedly sold to Samudera Shipping in February for US$8.5m” said Gibson.
Regarding the container shipping market, Gibson noted that “since the successful increases in freight rates the charter market has benefited from firming levels, especially for the larger segments. This has given some cautious optimism for the approaching peak season, however, with newly re-activated tonnage coming back on line it is still to be seen whether these ships will be absorbed into the charter market without eroding away these improvements. There are rumours abounding this week regarding the sales of 1990s built tonnage and it will be interesting to see if these rumours bear fruit next week. We understand that the 1,608 teu "WARNOW TRADER" (22,250 dwt/blt 1996 MTW) has been committed internally to German buyers in what appears to be a financial deal, but at the time of writing the transaction was yet to be finalised. Interest in Japanese built boxships continues as we understand the 1,613 teu "IPANEMA" (24,378 dwt/blt 1995 Shin Kurushima) has been sold for US$4.6m to SeaChange Maritime. On the newbuilding front, there remains buying interest in smaller tonnage particularly in modern design 1,700 teu and 2,500 teu vessels. Given the relatively old current fleet orders in this segment may be seen as attractive not only in terms of price and the eco-designs but also in terms of potential returns if a gap is left in the market by the removal of the older tonnage” concluded Gibson. Source - Nikos Roussanoglou, Hellenic Shipping
If you believe an article violates your rights or the rights of others, please contact us.