With sea freight markets retreating both in the dry and the wet segments of the market during most of July, ship owners were reluctant to invest in acquiring more vessels, after the high level of sale and purchase activity, observed during May and June.
According to the latest monthly analysis, prepared by shipbroker Golden Destiny, in cooperation with Hellenic Shipping News Worldwide, July could be described as the month with the lowest record activity during the year, in terms of reported number of transactions, with tankers holding the largest share of the S&P secondhand market, almost 32%. A total of 72 vessels were traded last month for a total of around USD 2 billion, which translates to a negative change of 30% versus the previous month.
Golden Destiny said that the low seasonal summer period has slowed down the purchase plans of Greek and foreign buyers especially in the bulk carrier sector, which used to be the key factor in the strength of the S&P secondhand market. The dramatic and rapid collapse in the BDI has calmed down the S&P activity of Greek and foreign buyers who seem to adopt the wait and see approach before investing again in the sector as asset values are still on the high side and expectations for a strong Chinese demand remain weak for the rest of the summer. The month ended with a negative monthly change of around 70% in the volume of reported bulk carrier S&P transactions as only 18 vessels reported to have changed hands equaling to a total amount of money invested around USD 430,750,000 with Greeks to have invested around USD 39,600,000.
The plunge of the BDI and the dry bulk market as a whole, led to the rising of the wet sector, which for the first time this year, managed to surpass the bulk carrier market, in terms of the number of vessels reportedly traded in the second hand market.
Golden Destiny said that "The summer time has also influenced the freight market of tankers with crude carriers experiencing the biggest falls in key trade routes. However, the buying momentum of Greek and foreign buyers has recorded around 35% MoM increase, 23 vessels reported to have changed hands equaling to a total amount of money invested around USD 949,100,000, as tanker asset values seem to be still attractive investment opportunities. In the container sector, the S&P activity continues with positive buying momentum as the charter market remains at strong levels and idle fleet falling below 2% of the existing fleet while at the beginning of the year was standing at 10.4%. Asset values are at such attractive levels, estimated to be barely more than half below its peak levels seen in 2008, with some Greek owners entering into the sector for the first time either with the purchase of secondhand vessels or order of new units."
According to Golden Destiny, the total number of vessels reported sold to Greeks estimated to be 15 equaling to a total amount of money invested region USD 552,600,000, indicating a negative monthly change of around 55%. The preference of Greek owners is towards the container sector as around 53% of Greek purchases were reported in the container sector, 8 containers reported sold equaling to a total amount of money invested around USD 274,000,000. Greeks are still holding the largest share of the secondhand market in terms of reported number of transactions versus Chinese buyers but their buying momentum has weakened due to the postponement of purchase plans in the bulk carrier sector. Greeks estimated to hold around 21% of the secondhand market in terms of reported number of transactions while Chinese around 8.3%. The buying activity of Chinese buyers has strengthened since the previous month with purchase interest in the bulk carrier and container sector. In July 2009, Greeks were holding just almost 14% of the secondhand market with 63% of their purchases reported in the bulk carrier sector, 19 vessels reported to have sold equaling to a total amount of money invested around USD 831,950,000.
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(Sourced from Hellenic Shipping News)
