The tanker sale-and-purchase market posted healthy gains in October on the back of improving freight markets, a top shipbroker has confirmed.
Secondhand tanker sales were up 34% month on month to 43 units, according to Affinity (Shipping).
"Tanker sales were likely bolstered by the upward trend in the sector's earnings, particularly from the middle of October, which is set to firm up S&P activity in the near term," it said.
"Compared to last October's level of 35 ships, the total number of tankers sold during the month stands 26% higher."
Affinity (Shipping) said buyers' preferences steered from MRs towards the bigger sizes, with sales of LR1s jumping to 15 units in October from only one the month before, while MR sales halved to nine units.
Overall, the number of tankers sold in the year to date increased to 410, which is 86% higher that the same period last year. Product tankers accounted for 59%, with 241 units sold.
In contrast, in the dry bulk segment, the number of secondhand sales softened by 25% on the month to 68, an 8% decrease year on year.
Affinity (Shipping) said this was the first drop in the sector's year-on-year comparison since September 2020.
"The small and medium-sized ranges, particularly the handysize and supramax size bands, continued to dominate the scene with a total of 23 handysizes and 13 supramaxes sold," it said.
Capesizes and panamaxes recorded several sales, with eight and seven vessels changing hands respectively. Two VLOCs were sold, the highest number since July 2020.
In the year to date, secondhand bulk carrier sales have totalled 820 units, an 86% increase from 2020 and a 79% uptick compared with pre-pandemic levels in 2019.
In the demolition market, the shipbroker said tanker scrapping activity soared in October, with 18 ships sent to breaking yards.
"This is the highest level of scrapping since June 2018, when the same number of tanker demolitions occurred," it said.
A total of 72 tankers have been demolished so far this year, a rise of 793% compared with the same period in 2020.
The bulker demolition market, in contrast, remained muted. Just four bulkers were scrapped in October, bringing the number this year to 58.
Affinity (Shipping) said the correction in the dry bulk freight market, particularly in the larger segments, will probably boost the level of bulkers sent for scrapping.
"On the other hand, improving earnings and overall sentiment in the tankers segment is expected to see scrapping levels move in the other direction, at least in the near term," it said.
