Greek buyers of secondhand bulkers are facing renewed competition from Nordic rivals as freight rates rise.
Norwegian shipbroker Cleaves noted a “very active dry bulk market”, with buying interest hotting up and price increases gathering pace.
Sale-and-purchase broker Einar Straume said: “We cannot fail to observe that Greek buyers are racing at the head of the pack; they are traditionally very savvy buyers and tend to know their timing.”
But he noted that the Norwegian investor market is “opening up to buying into bulk carriers again”.
At least three handysizes and handymaxes aged between 12 and 14 years are “being floated for syndication”, he added.
The broker also said “surprisingly few” kamsarmaxes have been sold lately.
But European brokers reported Chinese owner Far East Horizon’s 82,200-dwt Xin Hong (built 2013) sold to Evangelos Marinakis’ Capital Ship Management for $19.5m or $20.5m with a dry-docking due.
A modern 2022-built kamsarmax is also said to be in play, with an offer made at $34m and a counter-offer at $36m.
These types of vessels are being fixed at $18,750 per day for 12 months currently.
Handysizes have been dominating the S&P list in recent weeks, but the focus in the past seven days has been on supramaxes and ultramaxes.
Big price jump
The 63,200-dwt ultramax Soho Principal (built 2016), owned by US company Raven Capital Management, went to German buyers for $26.3m.
Raven paid only $22.5m for the ship as a resale in 2015.
The price was said to be a substantial improvement from recent levels.
The same is the case for Grindrod’s 57,800-dwt IVS Pinehurst (built 2015), which was the subject of “fierce competition”, brokers said.
This supramax eventually went to Greek buyers for $23.2m.
Grindrod, now owned by Taylor Maritime Investments, paid $18m for the ship from Nisshin Shipping in Japan last May.
Eva Tzima, head of research & valuations at Seaborne Shipbrokers, said the recovery in the dry bulk market extended over the last week.
“As average earnings for bulkers have now reached the $15,000-per-day region, period activity has notably slowed down, with improving sentiment helping the majority of shipowners feel more encouraged to keep trading spot in hopes of even better levels during the second quarter of the year, a traditionally strong period for the sector,” she added.
Improvements on the freight front continue to fuel interest for secondhand purchases, according to Tzima.
Buyers more comfortable with risk
She noted “a very notable preference” for ultramaxes.
“Several prospective investors, even those who are relatively cash-rich, appear more comfortable to position themselves in the smaller/more versatile sizes, given that it is too soon to call the legs of this recent rally strong,”she said.
The battle for the few modern eco ships on offer is resulting in much higher premiums to last-done levels, Tzima argued.
Bidders know that they are “probably getting ahead of themselves”, but feel more comfortable doing so instead of risking facing an even stronger market in the near future, where it will be harder or more expensive to get their hands on these ships.
