The secondhand market for bulk carriers shows little sign of slackening, creating a sweet spot for owners wishing to dispose of their ageing vessels.
In a characteristic example, Greece’s Chios Navigation (Hellas) has managed to recoup close to its entire investment in two ships it has been trading for at least 10 years.
Company manager Menelaos Pangalos confirmed obtaining about $13m for the 75,100-dwt Doric Arrow (built 2001).
This is more than the $12.4m that Chios spent to acquire the Japanese-built vessel in February 2013. The company has been patiently biding its time to achieve that result — brokers reported the Doric Arrow as circulating for sale since November 2021.
Caroussis family-controlled Chios found an equally advantageous exit point for its next oldest vessel — the 52,400-dwt Doric Spirit (built 2001). The Japanese-built ship fetched about $13.5m, according to several broker reports confirmed by Pangalos.
Chios has been trading the Doric Spirit since it was built.
Another Greek company benefiting from market conditions to dispose of older vessels is AM Nomikos, which is said to have agreed to sell an even older ship — the 46,700-dwt Corona (built 1999) — for a remarkable $10.2m.
That is almost as much as the $11.9m that AM Nomikos spent to buy the vessel in 2014 from First Ship Lease Trust, which was then exiting bulkers.
With more than a dozen bulkers reported sold over the seven days to 18 April, the pace of transactions remains brisk, even though Chinese buyers have become less active, possibly due to coronavirus worries in their country.
“Buying interest [is] still shared equally amongst the entire spectrum of segments, both in terms of age and in size,” Allied Research wrote on 18 April.
However, such price levels have set some market observers thinking.
“Prices have been climbing for some time now, leaving many in disbelief at the secondhand market’s trajectory,” analysts at Athens-based Doric Shipbroking said in a recent report.
“If prices plateau, or even begin to subside [market] dynamic may slowly start to switch,” Doric said, adding carefully that “this is perhaps a premature conversation”.
Goodbulk in sale mode?
The fluid state of the market is reflected in sale talk reverberating around some big vessels controlled by Goodbulk.
TradeWinds already reported earlier this month about the Monaco-based company concluding deals to sell the 179,400-dwt Aquamaka (built 2009), as well as its only panamax — the 75,400-dwt Aquaknight (built 2007).
According to ship-management sources, the Aquamaka is about to be delivered to its new owner — Greece’s Alpha Bulkers.
Some brokers mistakenly tied Alpha Bulkers to another two Goodbulk capesizes — the 178,100-dwt Aquaproud and 182,100-dwt Aquamarine (both built 2009).
However, a question mark remains on whether Goodbulk has struck an agreement to sell these ships to other parties instead.
Goodbulk managers did not respond to comment on the Aquaproud, Aquamarine or the 174,000-dwt Aquascope (built 2006), which some Athens brokers report as sold to Lou Kollakis-led Chartworld Shipping for $19.7m.
