The secondhand market has not immediately jumped on surging bulker earnings but might do so very soon, given an influx of Chinese-owned sales candidates.
“As the freight market works to improve, the secondhand segment is portraying its usual lag,” Athens-based Doric Shipbrokers wrote in its weekly comment late on 1 December.
“The overall outlook as regards S&P is still a bit fuzzy — it will take quite a bit of momentum to get things moving on the sales side of things, even if hire rates are stronger/more active.”
One recent capesize buyer that can consider itself lucky is Lila Global.
After a deal arranged at the end of November, just as freight rates were skyrocketing, the shipowning arm of ship recycling giant GMS has emerged as the new owner of the scrubber-fitted 171,700-dwt Maran Innovation (renamed Lila Chios, built 2004).
Brokers mistakenly reported that the ship was sold in April.
However, this time its previous Greek owner — Maran Dry — has definitely sold its oldest capesize for about $13.5m, according to market sources.
Lila Global will not immediately start reaping the benefits from the soaring market. The Lila Chios is on an existing time charter that is due to expire at some point in January and its current charterer has an option to extend it for a few more months.
In a deal for a much younger capesize, US brokers report that China’s Herun Group is offloading the 181,200-dwt Herun China (built 2017) for $42m. Greek brokers are linking European buyers to the deal, possibly UK-based Union Maritime.
It is said to be due for delivery to its new owners between March and July.
The reported Herun China deal is in line with other information, of ample Chinese-owned panamax and kamsarmax tonnage hitting the market.
“Recently, there has been a surge in Chinese-owned sales candidates ... and, not breaking with tradition, they are the most modestly priced vessels being marketed by the keenest sellers in the current market,” Doric wrote.
In its latest report on 1 December, Clarksons confirms a “notable increase in tonnage being marketed for secondhand sale”.
In the most prominent deal to have come to fruition for such tonnage, the 82,300-dwt Aurora Borealis (built 2023), a ship completed a few months ago at Cosco Heavy Industries, is reported sold for $38.2m.
Some Greek brokers are linking Egypt’s National Navigation Co (NNC) to the transaction.
The company, managers of which did not immediately respond to a request for comment, is known to be picking up kamsarmax resales as part of a fleet renewal. As TradeWinds reported, NNC announced late last month that it was purchasing the 82,000-dwt AP Lovrijenac (built 2024) for $38m.
The Chinese are not the only ones selling.
UK and US brokers report Germany’s Oldendorff as divesting the scrubber-fitted, 81,200-dwt Kai Oldendorff (built 2019) for about $30.8m.
Greece’s Alassia NewShips Management, a company known to be in a fleet-renewal process that includes bulker newbuildings, is said to be earning $15m from the sale of the 81,400-dwt Cymona Galaxy (built 2009).
It is said to be due to be delivered to its new Far Eastern owners in March.
Further kamsarmax deals are in the pipeline. According to Clarksons, offers on 10-year-old vessels of that type are due this week.
