China has taken just over three months to become the first country in 2019 to spend more than $1bn buying secondhand ships, data shows.
It took Chinese buyers just 94 days to break the billion-dollar level, according to data provided to TradeWinds by VesselsValue.com (VV).
But although 94 days is fast, it's not quite as fast as a spree five years ago by one of China's biggest shipowning rivals.
Greece holds the title as the fastest country ever to spend $1bn on secondhand vessels, taking just 38 days to hit the target in 2014.
Buying breakdown
Chinese buyers have favoured bulk carriers over other vessel types in 2019 to date.
Bulkers have accounted for 59 of the 87 vessels sold to Chinese buyers this year, according to the VV data.
Panamaxes have proven to be the most popular bulker type with 19 vessels sold to Chinese buyers, plus 14 supramaxes and 12 ultramaxes.
“This is primarily down to Chinese leasing companies offering foreign owners cheap finance via sale and leaseback schemes," commented Olivia Watkins, VV’s head cargo analyst,
"This tactic has proved especially popular for companies listed on the stock exchange to improve their balance sheets whilst retaining commercial control of their assets. Look towards Scorpio, d’Amico International and Ardmore for good examples.”
Scorpio Bulkers has been the largest seller of vessels to China this year and has so far sold eight bulk carriers to the country through sale and leaseback deals.
Record breakers
It has been five years since China last beat rival nations to break the billon-dollar spending level in the secondhand market, the VV data shows.
Norway snatched the top spot in 2018 due to Odfjell Drilling's stand-out purchase of the Stena MidMax drilling rig, which was acquired for $505m on 29 January last year.
Before that, Greece held the title of fastest billion-dollar spender.
