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As the first month of summer in the northern hemisphere is coming to an end

As the first month of summer in the northern hemisphere is coming to an end and the second quarter of 2023 is ending, we take a glance at bulk carrier and tanker S&P activity. On the tanker segment, the S&P activity seems to soften during the past three months, as high second-hand values & profit gains inhibit the desire to buy and sell accordingly. During the 2nd quarter of 2023 we witnessed 159 sales, almost 30% down compared to the 1st quarter of 2023. The top choice of second-hand activity is the MR2 sector, since 114 MR2 tankers have changed hands (around 30% of the total tanker sales) year to date. This is followed by small tankers (>=10,000 DWT), Panamax/LR1 and Aframax/LR2 which account for around 15% each of total tanker sales. On the Suezmax and VLCC sectors the buying appetite is subdued as 24 and 34 vessels respectively have found new owners ytd, constituting to 6% and 9% of total tanker sales accordingly. The tanker S&P activity during the first 6-month period of 2023 is moving in higher levels compared to the same period of 2022, witnessing a 27% increase. Greek shipowners played a significant role as Sellers, as they have sold 97 vessels (25% out of total tanker sales) year to date, with an average age of 17 years old. MR2, Aframax/LR2 and Panamax/LR1 segments were on the top of Greek's selling charts, having sold 21 MR2, 19 Aframax/LR2 and 17 Panamax/LR1 vessels. Chinese are following, having sold 37 vessels (9.6% out of total sales). The average age of vessels sold by Chinese shipowners was 11 years old. On the buying side, UAE based buyers were on the top during the first quarter of 2023, while China, Turkey & India were also placed high on buying charts, with Chinese owners acquiring 30 tankers, while Turkish and Indian 27 and 26 tankers accordingly. Last but not least, during the first quarter of 2023 the majority of vessels that changed hands were in the 16-20 years old category (94 vessels), followed by the 11-15 years old category (78 vessels), while during the second quarter of 2023 vessels' year-built preference focused slightly on younger vessels, with the age group 11-15 years old dominating on the tanker S&P activity (67 vessels), followed by 16-20 years old category counting for 61 vessels.

Similarly, to the tanker activity trend, dry S&P activity has also softened in the second quarter of 2023 compared to the first quarter (almost 23% down). As of today, a total of 311 vessels have been sold, with 135 of them taking place from April to June 2023. During the first half of 2023, Supramax & Handysize segments played a key role on the second-hand activity, with 84 Supramaxes & 78 Handysizes sold, constituting 27% and 25% of total bulk carrier sales respectively. This is followed by the Capesize segment, representing about 13% of total bulk carrier sales, while Ultramax and Panamax segments were slightly lower on shipowners' preferences representing 10% each of total sales. Back in the first half of 2022, a total of 367 bulk carrier vessel were sold, 15% up compared to the similar period of 2023. A total of 55 vessels have been sold by Greek shipowners (17.7% of total bulk carrier sales), with the majority of sales being Supramaxes (18 vessels), Handysizes (12 vessels) & Capesizes (11 vessels). Japanese and Chinese shipowners have sold 38 and 35 bulk carrier vessels respectively. Greek Buyers play an equally significant importance in both Dry and Tanker's S&P market, as Greek shipowners have acquired a total of 71 vessels (23% out of total sales), followed by Chinese and Turkish shipowners which have acquired 28 and 20 vessels respectively. Almost half of vessels being sold are in the age group 11-15 years old, while the category 6-10 years old is also high on shipowner's buying appetite (68 sales or 22% out of total sales).

In the wet market most of the analysts have turned their eyes towards Asia and China in particular. Based on their data - as they were presented at the Energy Asia conference in Kuala Lumpur - Asia's economic growth will drive the global oil demand in 2023 despite recessionary risks and economic headwinds. The economies of developing countries, particularly China and India, are driving a healthy growth in oil demand of more than 2 million barrels per day, despite recession risks in several OECD countries. The underperformance of China's economic rebound and the failure of Chinese government stimulus packages to revitalize the economy have great impact to China's GDP growth rate and the seaborne dry market. But on the other hand, the increase of road and air traffic in China, the rebound of the domestic and foreign tourism along with the reopening of many refineries have given a significant boost to crude oil and product oil demand, in a way supporting the vessel demand and the healthy levels in tanker freight market.

Sale and Purchase:

On the dry S&P activity, on the Capesize sector, it is rumoured that clients of Costamare acquired the "Aquaenna" - 176K/2011 Jinhai for high USD 22 mills. On the Kamsarmax sector, the "Rikke" - 82K/2016 Tsuneishi Zhoushan was sold for region USD 27 mills to Greek buyers, while the Panamax "Coral Opal"- 78K/2012 Shin Kurushima was also sold to Greek buyers for region USD 19 mills. The Ultramax "Hanton Trader III" - 64K/2014 Jiangsu Hantong found new owners for USD 23.6 mills. Finally, the Supramax "Corinthian Emerald" - 58K/2012 STX changed hands for USD 19.25 mills basis June TC free delivery.

On the wet S&P activity, the Scrubber fitted VLCC "Athenian Glory" - 299K/2011 HHI was sold for region USD 66 mills to Greek buyers, while the "Lulu" - 317K/2003 HHI for USD 42.5 mills to Chinese buyers. The Suezmax "Elandra Osprey" - 157K/2018 Hyundai Samho was sold for USD 75 mills to Singapore based buyers. On the LR2 sector, the Scrubber fitted "Pro Triumph"- 105K/2009 HHI changed hands for region USD 40 mills. Last but not least, the MR2 "Anfa" - 48K/2010 Iwagi Zosen found new owners for USD 24.5 mills.

Xclusiv Shipbrokers Inc.