String of older panamaxes change hands in the secondhand market

The sale-and-purchase market has been busy with numerous bulker deals being concluded, particularly for older panamax bulkers.

Brokers have reported a number of sales by shipowners including Bjorn Tore Larsen’s Arendals Dampskibsselskap (ADS), John Fredriksen’s Golden Ocean Group and Goulandris Bros.

For these three owners, the transactions involve selling off some of the oldest ships in their fleets.

This year, Norway's ADS has been focusing largely on VLCC spin-off ADS Crude Carriers, which has sold its three VLCCs this autumn.

But the company also reduced its private fleet, and has now disposed of the 76,000-dwt bulker ADS Arendal (built 2004).

Brokers said the company sold the Sasebo Heavy Industries-built ship to an undisclosed buyer for $7.65m. Larsen confirmed the sale but said the vessel has not been delivered to its new owner. The deal leaves his company with one bulker — the 73,000-dwt ADS Galtesund (built 2007).

New York and Oslo-listed Golden Ocean Group has reportedly sold one of its oldest bulkers — the 76,000-dwt Golden Shea (built 2007).

This Namura Shipbuilding-constructed vessel, which operates in the spot market, is understood to have fetched $9.8m in a sale to an undisclosed buyer.

That is in line with expectations of VesselsValue, which says the bulker is worth $9.6m.

Golden Ocean chief financial officer Peder Simonsen said the company cannot comment on specific transactions.

"But Golden Ocean is always looking for attractive transactions," he said, noting that the company is active in the S&P market and is aiming to reduce its carbon footprint.

The outfit bought the Golden Shea from Quintana Shipping for $12.3m in March 2017.

Some bulker owners are seeing the chance of recouping part of the value that their elderly bulkers have lost in the past few years.

This could also be the case for Goulandris Bros, which has a fleet of five panamaxes and kamsarmaxes.

US brokers said the company's 76,000-dwt Red Rose (built 2003) has gone to an undisclosed buyer for $6.8m. This is the shipowner’s oldest and smallest vessel.