Secondhand Dry Bulk Market Flooded by Vessels for Sale

The secondhand dry bulk market has been struck by the latest stagnation in the market and depressed charter rates.

 “The market has been flooded by vessels for sale while even more candidates –especially from the Japanese market- are expected to come in the near future pushed by the weak Yen against the US Dollar,” shipbroker Allied Shipbroking said in a  weekly report.

According to the report,  at least 25 Supramaxes and more than 20 Panamaxes are for sale, all built post 2000 in Japan. As a result, it is believed that the oversupply of tonnage for sale is more likely to keep the asset values on the low side.

” However, despite the various sales that have taken place in the product sector, strong enquiries for crude tankers are still there, heading to the traditionally strong 4th quarter.

On the newbuilding front, a U.S. based company namely “MGTECK” has set a remarkable order of 18 Newcastlemaxes in SWS in addition to another 6 Capesize vessels in JES. All vessels are going to be delivered between 2016-2018, added on top of the existing orderbook, which consists of 165 Capers and 100 Newcastlemaxes”, Allied Shipbroking added.

Aside to COSCO, which was very active in newbuild market this week, Blue Planet Shipping have declared options at Nantong Hongqiang for three further 64,000dwt Ultramax, according to a weekly report from Clarksons Hellas.

” The only fresh order in Japan to come to light this week is Mitsuibishi Corp contracting a single 60,000dwt Ultramax at Saiki Heavy – due to deliver at the very end of 2017.”

Clarksons Hellas said that the newbuilding market saw orders across the container, heavylift and ferry markets this week.

“At Yangzhou Guoyo, Nordic Hamburg are understood to have declared two options for 1,400teu fully dual-fuel feeders, with long term charter to Containerships Ltd. Oy. when delivered in 2017. Similarly Ningbo Ocean have declared options for the third and fourth 1,100teu feeders at Zhejiang Yangfan. Thought to have been declared earlier this month, the two additional vessels will deliver in 2016.

BigRoll Shipping have declared an option for a third ‘MC Class’ 21,000dwt Heavy Lift vessel at COSCO Dalian.

Lastly, domestic owner Dandong International Ferry Co. have ordered a single 30,000gt passenger / car ferry at Shandong Huanghai,” the Clarksons report said.