After acquiring three capesizes in a row, serial sale-and-purchase dry bulk player Costamare has reportedly switched its buying focus back to the smaller ultramax segment.
Brokers and market sources in Athens are tying the major New York Stock Exchange-listed owner to a $25m deal for Shikishima Kisen’s 61,400-dwt Eternal Hakata (built 2014).
Costamare does not discuss its commercial transactions outside public statements.
If the deal is confirmed, it would be the company’s first acquisition of an ultramax in 12 months.
The last such vessel that Costamare agreed to buy in September 2023, the 61,400-dwt Ultra Regina (renamed Arya, built 2013), has striking similarities to the Eternal Hakata.
Both ships have the same carrying capacity, are nearly of the same age, were both owned by Japanese companies and were both built in Japan — even though at different yards.
The Ultra Regina was built at Shin Kasado Dockyard, while the Eternal Hakata was built at Imabari Shipbuilding.
One remarkable difference between the two ships is the price they fetched on the secondhand market.
Costamare spent about $20m to buy the Ultra Regina last September, while the Eternal Hakata is now changing hands for $25m.
The price difference reflects the fact that the Ultra Regina had a special survey, as well as the general upsurge in bulker prices over the past year. However, it is likely also due to the recent earning power of ultramaxes.
In a report published earlier this week, researchers at Greek brokerage Intermodal pointed out that the consistently superior earnings performance of ultramaxes compared to kamsarmaxes over the last three months has considerably narrowed the price gap between them.
According to Intermodal, five-year-old kamsarmaxes currently cost between $1.5m and $1.75m more than an ultramax of the same age, compared with a long-term average price differential of about $2.7m.
This may be part of the reason why Costamare is refocusing its purchases on ultramaxes.
Kamsarmax deals have been rare in the S&P market over the past couple of weeks, in contrast to supramax and ultramax transactions, such as Wisdom Marine’s reported $34.3m sale of the 62,600-dwt Amis Miracle (built 2018) to Middle Eastern buyers — possibly Bahri.
A balanced S&P approach
Except for the ultramax Ultra Regina bought last year, Costamare’s general policy over the past 15 months has been to develop its fleet by selling supramaxes and handysizes while buying capesizes.
In line with that strategy, TradeWinds reported earlier this week about Costamare reportedly shedding the 58,100-dwt Titan I (built 2009) to Indonesian interests for about $16m.
Several brokers have since identified the buyer as Gurita Lintas Samudera, a Jakarta-based company that bought in June another similar Greek-owned supramax — Golden Union’s 58,800-dwt Captain Andreadis (renamed Feiza, built 2008) — at about the same price.
According to its latest presentation, Costamare owned and operated at the end of July 92 bulkers and 68 container ships.
If its latest purchase of the Eternal Hakata is confirmed, the company will have bought seven bulkers on the secondhand market since June 2023 — five capesizes and two ultramaxes — for about $180m in total, according to TradeWinds calculations.
Including the yet-unconfirmed sale of the Titan I, the company has shed 15 bulkers over the same period — nine handysizes and six supramaxes — again for about $180m in total.
[Editor's Note: According to information that emerged after the publication of this article, the Eternal Hakata was not sold to Costamare but to Athens-based Seastar Chartering instead]
