Canadian owner Fednav has reportedly sold a Japanese-built ultramax bulker for a firm price as buyers continue to opt for quality tonnage.
Brokers reported the 63,452-dwt Federal Island (built 2017) was sold last week to unnamed buyers for $32m, which Clarksons described in a report as “mid-high”.
TradeWinds has contacted Fednav for comment.
The geared vessel was built at Tadotsu Shipyard to Imabari’s New I-Star design. It has an eco-electronic engine and a ballast water treatment system.
Fednav bought the vessel in October 2022 from Japanese owner Shikishima Kisen for an undisclosed price.
This is the second bulker Fednav has sold this year. In February, it sold the 36,600-dwt handysize Federal Rideau (built 2000) for an undisclosed amount to a Marshall Islands-registered entity called Kiba Logistics. It is operated by Costalina Ship Management of the United Arab Emirates.
Japanese ultramaxes have been changing hands at pace during April as buyers opt for quality units, as TradeWinds has reported.
Reality check?
All but two of the 20 bulker sales tracked by Clarksons this month have been of Japanese-built ships, largely sold by Japanese owners.
Twelve-month period rates for supramax and ultramax vessels have finally broken through the $16,000 barrier, having trended upwards for the past eight months.
Last Friday, Clarksons estimated one-year period rates at $16,250 per day, based on a 58,000-dwt supramax. This is its highest weekly estimate since August 2022.
The Baltic Exchange’s forward curve for 58,000-dwt supramaxes indicates rates of around $15,500 per day for this quarter and the next, falling to $14,500 per day in the final three months.
Clarksons’ estimates for three-year period rates have remained static since February at $12,750 per day.
Many potential buyers are becoming “disenchanted” with the current sale-and-purchase market because freight rates remain largely flat, which could lead to sellers adjusting their price expectations, Doric Shipbrokers said in its weekly market report last Friday.
But modern ultramaxes are among the exceptions to this trend.
“In some cases, prices are still firming, perhaps a result of the initial strengthening months ago, or perhaps riding the wave of optimism that started around Christmas; this is occurring primarily for modern/young ships, be it handies/supras/ultras,” Doric said in its report.
All this being said, optimism is running short and Doric expects sellers will set more realistic price expectations.
“Owners of some handies and supras are reining in their price ideas, especially in the case of ships right around the 15-year-old mark,” it said.
“That’s not to say that other ships are not achieving lofty sales prices; reports of sales of these pricier assets are mostly met with arguments that such expensive acquisitions don’t make sense, even if hire rates eventually heat up.”
Active buyers of handysizes and supramaxes will be searching for “best buys” — “or swallowing a rather big pill and coughing up (relatively) large amounts for ships”, Doric added.
