Chinese buying is sustaining the secondhand market for elderly capesizes.
Four big bulkers aged between 14 and 18 years have been reportedly bought by Chinese investors, according to brokers and market sources.
China-based interests have been the biggest buyers of such vessels in a frantic first half of sale-and-purchase activity.
The pace of buying has slowed from record levels in the first quarter, but it remains brisk.
“Capesize S&P is at its slowest pace so far this year — but with more than five sales in each of June and July, this is a very liquid ‘low point’ by historic standards, highlighting what a stand-out year 2024 has been,” Allied Shipbroking said in its latest weekly report on 23 July.
This week, owners of older capesizes from South Korea, Japan and the US have taken advantage of buying thirst from China, which defies rising prices.
TradeWinds reported on 22 July that US-listed Genco Shipping & Trading had agreed to sell the 169,000-dwt Genco Hadrian (built 2008) for $25m.
Several brokers have been reporting that the buyers are Chinese.
Other, unidentified players based in China are believed to be behind deals for capesizes owned by South Korean players H-Line Shipping and Chang Myung Shipping.
H-Line has sold the 177,500-dwt HL Baltimore (built 2006) for $22.5m, while Chang Myung Shipping got $20.75m for the 173,700-dwt C Vision (built 2008).
H-Line has basically traded the Japanese-built HL Baltimore free for eight years, as it acquired the ship from Samos Steamship in 2018 for $22.5m.
Brokers said more than 10 companies — mainly Greeks and Chinese — submitted bids for the HL Baltimore.
They added that H-Line has struck a deal with the buyer to take back the Mitsui-built vessel for a time charter between nine and 11 months at $21,000 per day.
This is a familiar pattern for H-Line.
Its two previous bulker sales this year — the 179,700-dwt HL Harmony (renamed Wah Shan, built 2015) to Taiwan’s Sincere Navigation for about $43m; and the 81,400-dwt HL Ibt (built 2011) to GNS Seoul for $19.2m — included similar leaseback arrangements.
As for Chang Myung Shipping, its divestment of the C Vision leaves it with a single capesize — the Bohai-built 173,800-dwt C Utopia (built 2007) — as well as two kamsarmaxes and three handysize bulkers.
Observers said the C Vision fetched a lower price than the HL Baltimore, which is two years older, because the Chinese-built C Vision has a higher fuel consumption.
Chang Myung is one of the four shipping companies owned by SM Group, which also controls liner operator SM Line, Korea Shipping Corp and Korea Line Corp.
Japanese capesize owners have joined the sale activity as well.
According to several brokers, Tokei Kaiun has agreed to part with the 178,400-dwt Cape Mathilde (built 2010) to unidentified Chinese interests for about $30m.
