Second-hand ship market -"old ship" sells "new price"

With the recovery of the global shipping industry in 2021, the second-hand ship trading market will also pick up significantly.

From the perspective of the total deadweight of global second-hand ship transactions, according to Clarkson's statistics, the global second-hand ship transaction volume will reach 145 million dwt in 2021, a year-on-year increase of 46%. From the perspective of global second-hand ship transaction value,

According to Clarkson's statistics, the total global second-hand ship transaction value in 2021 will exceed 47 billion U.S. dollars, successfully breaking the previous record level of 46 billion U.S. dollars created in 2007.

According to the "China Shipping (31.000, 0.02, 0.06%) Transaction Price Index SSPI" released by the Shipping Information Network (composed of two parts: the second-hand bulk carrier price index and the second-hand oil tanker price index, which reflects the overall price change trend of the second-hand ship market), Since the beginning of 2021, the price of the second-hand ship trading market has risen rapidly and has begun to grow rapidly.

From April to December 2021, it will remain at a level above 1,000 points, exceeding the level of the base period in 2006. In 2022, it will still remain at a level above 900 points. significantly higher than the 2019 average. Transaction prices have risen sharply and ships have been purchased at a premium.

On March 17, a Suprasize flag-of-convenience bulk carrier named "Seacon Singapore" built in 2013 was auctioned online on the Guangzhou Shipping Trading Platform, with a base price of US$13.8 million. After 37 rounds of bidding, the 56,000 dwt ship named "Seacon Singapore" was sold for US$19.45 million, with a premium rate of nearly 40%.

           

On the other hand, although the conflict between Russia and Ukraine is still going on, this stall has not affected the second-hand dry bulk ship market at all. Eva Tzima, chief analyst at Seaborne Shipbrokers, a ship brokerage company, said that although the situation of geopolitical conflicts is not optimistic, the shipping market seems to have become numb to geopolitical threats, as evidenced by the large number of inquiries in the second-hand ship trading market.

Strong buying and selling activity is likely to persist as market volatility sparks expectations of a shift in trading patterns. The bulk carrier market is highly prosperous The high prosperity of the bulk carrier market is driving the activity of the second-hand ship trading market.

Shipbroker Allied said in its latest weekly report that the past 12 months have seen an astonishing increase in the price of dry bulk vessels traded around the world. This time last year, asset prices for second-hand ships had risen, but still lagged behind freight rates. But recent indications are that the positive momentum seen in the second-hand market is not driven by a strong cargo market.

According to news recently released by Norwegian shipowner Ocean Yield, the company has successfully transferred a bulk carrier "Interlink Dignity" built in 2015.

The buyer is Tufton Oceanic Assets, a British fund company listed in London. Compared with the cost at that time , obtained a transaction premium of 11.5 million US dollars, and successfully realized the "assets" in his hands into higher returns. This year's second-hand ship market is still hot, among which dry bulk carriers are still the main force, and many "old ships" are sold at "new prices". The transaction price has risen sharply.

George Lazaridis, research and appraiser at Allied, said that the increase in second-hand transaction prices of smaller ships such as Handysize and Handymax may be related to freight rates, but the increase in prices of Capesize and Panamax large ships so far this year cannot be attributed to other. Freight performance. At present, the second-hand transaction price of such ships has exceeded the asset price level at the peak of the market in the fourth quarter of 2011. Since January 2021, the average price of second-hand dry bulk carriers has increased by about 85%. Smaller size asset prices rose more significantly, with Handysizes up 104% on average and Handysizes up 101% on average, while Panamaxes and Capesizes saw more modest gains (74% on average for the former and 101% for the Handysize). up 62%).

The current uptrend is similar to the peak in mid-November 2021. But comparing the performance of the freight market this year with the situation in 2021 shows signs of overheating in the second-hand Panamax and Capesize markets, a view further supported by uncertainty about the global economy and global trade in recent months.

Still, the market heats up further before cooling off or in the short term.

All indications are pointing to a “hot summer” (at least in early summer) for the second-hand dry bulk market. At present, many dry bulk ship owners are planning to sell their bulk carrier assets in order to profit more from this wave of second-hand ship transactions.

On May 31, Thai dry bulk carrier Precious Shipping acquired two second-hand handysize ships from Norway's Njord Shipping for US$51 million. The 35,900-dwt Nordic Seoul will join the Precious fleet in June for $25 million; the 35,800-dwt Nordic Busan, scheduled for delivery June-August, will Prices change hands; Greek buyers tend to focus on younger-age bulkers, with Greek bulker Safe Bulkers announcing on May 26 that it will buy a 10-year-old Capesize for $3,175 and renew Named the "Aghia Sofia" wheel.

The popularity of ship trading continues unabated According to Clarkson data, the increase in the price of second-hand ships has not dissuaded shipowners from buying ships.

Second-hand ship spending will remain strong in 2021, with an investment of US$10 billion in the first quarter, US$13 billion in the second quarter, and US$110 million in the third quarter. billion, and $12 billion in the fourth quarter.

From the buyer's point of view, Greek shipowners spent the most ($7.2 billion), followed by Chinese shipowners ($5.3 billion) and Norwegian shipowners ($2.7 billion). From the perspective of sellers, Greek shipowners also topped the list, with sales of second-hand ships reaching US$9.9 billion, followed by Japanese shipowners (US$5.9 billion) and Chinese shipowners (US$4.2 billion).

Therefore, Chinese shipowners are the largest "net buyers" of second-hand ships, spending $1 billion more on buying ships than selling them. Overall, however, European shipowners were the most active buyers, spending $25 billion, while Asian shipowners spent $16 billion.

Since 2022, although the price of second-hand ships has continued to rise

the enthusiasm for buying and selling has not diminished. Clarkson analysts predict that at this rate, annual sales in 2022 will reach $53 billion, setting a new record. In addition, Yan Hongbo, general manager of Zhejiang Ship Trading Market Co., Ltd., also said that the "dual carbon" strategy will also stimulate second-hand ship trading.

From the past, although international events will bring many uncertainties and global economic development will also have a lot of pressure, However, according to the overall trend of global low-carbon emission reduction, the replacement of ships will definitely be accelerated, thereby stimulating the transaction of second-hand ships.

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