NYK Line is said to have found buyers for a 25-year-old capesize in a deal highlighting the strong for vessels of all ages in a robust freight market.
The Japanese shipping giant has offloaded the 172,900-dwt Oriental Navigator (built 1999) to Chinese interests for just shy of $12m, according to brokers in Greece and London.
That means the NKK-built ship fetched about $1.8m more than its scrap value, according to VesselsValue.
NYK Line is said to have had the option of selling the ship for scrap, which it declined given the higher price on offer from players seeking to keep the vessel on the water.
Clarksons wrote in its latest weekly report: “While bids were received from ship recycling interests, the sale was concluded for further trading to Chinese buyers.”
According to brokers at Athens-based WeberSeas, the transaction is just one of several showing that demand for capesize vessels remains strong amid a sturdy freight market standing at a three-month high.
Other dry bulk specialists agree.
After noting that “a number of capesize bulkers … hit the market recently”, Athens-based Doric Shipbrokers commented on 27 September: “It seems that some cape owners are looking to cash in on the segment’s liveliness.
“With prices remaining relatively lofty, vintage vessels continue to be a viable option for many.”
This only goes to underline that any uptick in the ailing demolition market is bound to be short-lived.
Clarksons reported on 27 September that Indian and Pakistani recycling yards have “had a slight turnaround in confidence this week, on the back of increasing prices in their domestic steel markets”.
Shipyards, however, “remain cautious”, given the lack of recyclable tonnage entering the market amid “elevated secondhand prices”.
Eleven out of the 15 capesizes reported sold by VesselsValue since 1 August are believed to have been picked up by Chinese interests.
TradeWinds has already reported how players such as Zhangjiagang OceanicWit have been scouring the market for older purchase candidates.
In a similar transaction reported by several brokers over the past 10 days, unknown Chinese buyers are said to have spent between $19.5m and $20.3m on the 174,400-dwt China Peace (built 2005).
The Chinese-built ship is the oldest vessel in the fleet of Taiwan-based Chinese Maritime Transport Shipping.
