Inspenet, August 19, 2023.
During the period from January to July 2023, an approximate 20% increase in sales of Capesize vessels belonging to Japanese shipowners was observed. A total of twelve transactions have been registered in this period .
About half of these sales are for vessels with a carrying capacity greater than 200,000 deadweight tons (DWT), with an average age of 15 years for the vessels sold, according to the report provided by VesselsValue.
Antique Capesize Ships Are Japanese Made
Most of the ships put on the market have been built in Japan and many of them were sold with long-term charterers attached.
Chinese buyers have led in terms of the number of purchases, making four purchases, followed by Singapore with three purchases. In addition, one ship will remain under the Japanese flag, while another unit will have its destination linked to Monaco and Turkey. Two other buyers have not yet been disclosed.
In this context, from VesselsValue it was explained that “at the end of July, Capesize spot rates were around USD 15,553/day, which implied a decrease of 9.9% year-on-year. With rates relatively flat, this has put downward pressure on Capesize stocks, following a lackluster outlook for China. This has been partly due to weak confidence in the property sector which, in turn, has had an impact on construction and therefore demand for steel.”
“Coal demand has supported freight rates to some degree and there is a lot riding on some type of recovery in the second half of the year, which historically tends to be stronger. And while limited fleet supply will provide further market support in the medium term, the commodity market appears to be returning to normal after post-pandemic highs.
Generally speaking, prices for older Capesize vessels have seen a decline so far this year. Since the start of the third quarter, 15-year-old Cape ship values have decreased by about 5.8%, from $19.66 million to $18.52 million . This marks the first time that values in this sector have fallen below $19 million since July 2021.
In June, NYK sold the Atlantic Tiger (180,200 dwt, year 2006, built by Imabari) to Winning Shipping for $16.65 million, based on a value provided by VesselsValue of $18.12 million (a reference sale that played a role in lowering values).
Likewise, in late July, Kitaura Kaiun sold the Shiosai (176,800 dwt, built in November 2009 by Namura) to Chinese buyers for $20.85 million, valued at $20.92 million according to VesselsValue.