Several midsized bulkers have been committed to Greek owners this month as a finely balanced secondhand market continues producing deals amid economic silver linings.
Buying interest has focused on high-quality tonnage built in Japan. Investors, however, are making small steps, and are careful not to over-extend themselves.
One characteristic example is Aims Shipping, which pounced on a 10-year-old ultramax.
Managers of the Athens-based company confirm that its clients are behind a deal for the 61,400-dwt ultramax Lowlands Breeze (built 2013) — a vessel owned by Japan’s Fukusei Sangyo since it was delivered as a newbuilding.
Aims did not disclose the price at which the vessel changed hands. Several brokers, however, put a $20.8m price tag on the deal. A major attraction for the Iwagi Zosen-built vessel must have been that it passed a special survey as recently as in July this year.
Aims has been a careful buyer in the S&P market. The Lowlands Breeze is just the second vessel it is buying on behalf of clients this year after a $15.8m transaction in January for Ugland's 58,100-dwt Bonita (renamed Omorfi, built 2010).
“Currently, we're advising our customers to proceed with caution when contemplating an investment in shipping due to the elevated asset values,” the company explained in an e-mail.
Relatively high asset values, however, are an essential part of current S&P conditions as they encourage sellers to part with their ships.
That applies to Greece’s Spring Marine Management, which is finding the opportunity to offload some of its tonnage at attractive prices.
TradeWinds reported in July about the company selling the 82,600-dwt Restinga (built 2006) to Greek peers Bulkseas Marine Management.
Market sources now say the firm is also selling the 76,800-dwt panamax Nenita (built 2006) for more than $12.5m.
Both deals are successful asset plays for Spring Marine, which had bought the Restinga and the Nenita at much lower prices during the 2016-2017 downturn.
The Nenita, for instance, cost Spring Marine just $6.5m at the time.
Some brokers report that the Nenita's new owners are Greek as well. This substantiates analyst comments about predominantly Hellenic bulker buying lately.
“Interest turning into actual investing comes from very specific and very few names in the shipowning community, particularly in Greece,” wrote Eva Tzima, head of research at Seaborne Shipbrokers, in her latest report.
Supramax and ultramax bulkers are at the centre of attention. “A number of high-pedigree [South] Korean and Japanese supras making their way onto the scene,” Athens-based Doric Shipbrokers commented.
In an additional example of these trends, Hellenic buyers are suspected behind a $23.5m deal for Tachibana Kaiun’s 61,300-dwt Santa Virginia (built 2014).
Another Japanese-built and Japanese-owned vessel reportedly committed to undisclosed buyers is Shoei Kisen’s 61,400-dwt Ultra Regina (built 2013) at $20m.
Economic resilience
The drive to buy mainly comes from investors’ perception that major economies are holding up well in the teeth of financial and geopolitical headwinds.
A combination of Western economies’ resilience to rising interest rates, a minor improvement in the Chinese economy and a low orderbook could potentially drive the bulker market up by about 25% to 30% , Aims’ managers said.
In that climate, buying occasionally spills over into handysizes and Chinese-built bulkers.
Hellenic interests are reported to be behind the acquisition of Nissen Kaiun’s 37,100-dwt Nord Savannah (built 2013), which fetched between $16.5m and $16.8m.
Moving on to Chinese-built and Chinese-owned tonnage, the 57,000-dwt Rhine Confidante (built 2010) is said to have been committed to Greeks at $10.8m. The same vessel had been mistakenly reported sold in July at a slightly higher $10.9m.
