Nigeria: Second Hand Ships More Attractive Proposition for Ship Owners At Present

1 July 2020

Ship owners are turning towards second hand ships in the post-pandemic era, at least for now, turning their backs on new building orders. In its latest weekly report, shipbroker Allied Ship broking said that "on the dry bulk side, the relatively good momentum in the SnP market continued for yet another week, with both the activity being noted and buying appetite seemingly re-emerging at a fast pace.

As of the past week, we experienced a good flow of transactions in the bigger size segments too (and for more modern units), helped (to some degree at least) by the strong upward trend noted in freight rates during the same time frame. All-in-all, with a far more bullish attitude currently being portrayed in terms of forward returns, we can expect things to ramp up further in the near-term. On the tanker side, total activity noted seems to be on a softening path as of the past few weeks, given the relatively mediocre number of vessels changing hands. Whether this is circumstantial or a new trend remains to be seen. Notwithstanding this, given the recent positive spikes in freight earnings, we can expect a vivid sales market once more".

In a separate note, shipbroker Banchero Costa said that "in the dry market 2 x Capesize units were reported sold during the week: New Stage 177,000 dwt built in 2008 at Namura was sold at $16.5m and Aqua Glory 171,000 dwt built in 2003 at Sasebo at $9.5m to Jiangsu Steamship. In February Shinyo Alliance 176,000 dwt built in 2005 at Universal was done at $14m.

Furthermore, a modern Kamsarmax Aquavita Air 81,000 dwt built in 2020 at Oshima was purchased at $28.5 mln by Greek buyer. In the Supramax segment a Norwegian controlled unit Rosita 52,000 dwt built in 2004 at Tsuneishi Cebu was sold at $6.6 mln to Chinese buyer, previous week Odiris 53,000 dwt built in 2005 by Imabari was done at $6.55 mln.

Concerning Handysize units, Ikaria Island 32,000 dwt built in 1997 at Onomichi was sold at $3.4m to Lebanese buyer basis DD passed. Last month UBC Bremen 24,000 dwt built in 1998 at Saiki was reported at $ 2.5 mln. In the tanker market, buying interest was focused in the Aframax segment: 2 x Aframax units, controlled by Minerva, Minerva Zenia and Minerva Alexandra 105,000 dwt built in 2002 and in 2000 at Daewoo and Samsung were reported at $24m en bloc and Seadance 105,000 dwt built in 1999 at HHI at $9.5m to Middle East Buyers. Furthermore, 2 x Chemical Tanker units Adfines Sky and Adfines Sun 19,000 dwt built in 2011 at Yangfan (marine line coated, IGS and Ice class 1A) were bought by Swedish buyer at $10 mln each".

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