Demand for secondhand vessels, in terms of enquiries, seems to be on a high at the start of 2022, even if this isn’t currently translated to more S&P deals concluded. In its latest weekly report, shipbroker Intermodal noted that “while it is logical that most of the S&P reports of the first weeks of the .
A small paradox is emerging in the tanker market, with ship values rising despite the steady downward pressure of the freight market. In its latest weekly report, shipbroker Intermodal commented that “tanker asset values have surprised with their upside, despite the downward pressure on the freight market. Tanker rates have been hovering close to their .
Tanker Acquisitions Gain Traction Despite Lackluster Market
A less than appealing tanker market hasn’t been enough to deter ship owners, keen to acquire modern wet tonnage, in expectation of a surge in demand and rates alike during the second half of 2021 and onwards to 2022. In its latest weekly report, shipbroker Intermodal said that “for an extended period, Dry bulk & Wet market rates have been diverging, with the SnP deals on each sector more or less tracking the market trend. However, since April, this trend appears to be revoked; despite a lackluster tanker freight market, tanker SnP transactions gained pace tracking the bulkers volumes. It is interesting to note, that older tankers units attracted the majority of SnP interest, contrary to bulkers, where the majority of transactions took place for 10Y old units and younger. Record high steel prices are supporting asset values across the board, despite the tanker market underperforming, with owners positioning for a market
Dry Bulk Acquisitions in 2020 Reached Similar Levels as 2019
Despite the pandemic, deals for dry bulk carriers managed to reach over 500 during 2020, a level similar to 2019. In its latest weekly report, shipbroker Intermodal, “despite the market shock in the 1H2020 and the suppression of interest in SnP, the 2H2020 compensated for the previous standstill, with the number of dry bulk transactions surpassing those of the 2H2019. Excluding sale and leaseback, slightly over 500 SnP dry bulk deals took place during 2020, approx. the same number as in 2019. The average age of the fleet transacted was approx.11 years old. Japanese units were responsible for approx. half of the total, while Greek and Greek based buyers prevailed in more than 35% of the transactions. Once again, geared vessels transactions stood out (approx. 60% of the deals), while of note is that that after a prolonged period of subdued interest in Capesize, the sector revived towards the end of the year. Capesize deals
From the deck of their tanker, Captain Samig Nabiyev and his crew could see the smoke and fire rising over the Port of Beirut, 900 meters away. When the flaming warehouse exploded, the force of the blast knocked Nabiyev flat on his back. “I thought I was finished,” said the 43-year-old Nabiyev, who’s worked on ships for almost 20 years. “We were all afraid for our lives.” Nabiyev and the 11 other crew members weren’t supposed to be in Beirut on Aug. 4, the day of the disaster that killed around 200 people and wounded more than 6,000. Like the tons of ammonium nitrate that had eventually exploded in the port, they too had been abandoned by the owner of their ship, left to the discretion of local officials and insurers. No one on Nabiyev’s crew was hurt, but as they learned more about the explosion in the weeks to come, they recognized the same industry practices that had left them stranded for months.