Ship owners from Hellas were responsible for 30% of the total S&P activity in the secondhand market for ships during the month of August, according to the latest monthly report from shipbroker Golden Destiny. In total, ship owners acquired 23 vessels with a total deadweight capacity of 2,144,781 tons for an aggregate of $790,150,000. Bulk carriers were the main “weapon of choice”, as nine of the vessels were of this type, accounting for $174 million and 696,537 dwt. Tankers followed with six of them bought for a total of $218 million, accounting for about 1 million dwt. An impressive performance for container ships, with five of them bought by Hellenic owners, for a total of $69.3 million with a carrying capacity of 259,787 TEUs.

In the newbuilding market, in what was a rather slow month, shipowners bought 4 ships for a total of $243 million, a figure which was 67% less than the previous month (in terms of ships numbers) and 81% less than equivalent month of 2013, when a total of 21 ships were ordered. According to Golden Destiny, “August ended with a steep fall in secondhand and newbuilding investments as the summer lull of freight market environment brought serious doubts for the gradual recovery of shipping markets. Demolition activity showed strength with bulkers and general cargo ships grasping the lion share (38% and 26% respectively)”.

The shipbroker noted that “overall, S&P activity in the secondhand market for August 2014 ended at levels of less than 80 vessel sales / purchases, when in August 2013, were at record highs of excess 120. Secondhand vessel purchases were down by 15% on the month and 40% year-on-year, as August of 2014 was marked by a total of 76 vessels traded for an invested capital of more than $1.64 billion, while 14 deals were reported at an undisclosed sale price. By comparison, August of 2013 was marked by 126 vessels. The average age of the vessels sold was 9 years old, mainly built in 2008 with an average dwt 51,524 tons. Similarly, newbuilding orders were down by 28% on the month and 18% on the year. In total, 150 vessels were ordered for a total of $6.2 billion, while 77 orders were reported at an undisclosed price. During August of 2013, there were placed 182 new orders.

Golden Destiny noted that “in September, an air of optimism emerged in the bulker segment, but uncertainty remains high, since the Baltic Dry Index strives to stay above the psychological barrier of 1,000 points. Shipping players narrowed their newbuilding plans as they wait to see if the upturn is near to be approached. Worldwide economic expansion and world trade reveal evidences of a steady recovery, but ships’ overcapacity remains the main headache for shipping’s euphoria”. It added that “despite the decrease of secondhand purchases during August, the first eight months of 2014 ended with 12% year-on-year increase in the average number of weekly reported S&P transactions( 29 vessels from 26 vessels in 2013), and up by 62%, compared with 22 vessel purchases in the first eight months of 2012. In the newbuilding market, the ordering levels remain excessive at 87% higher levels than the volume of secondhand purchases, but with signs of downward incline for the second half of the year. Newbuilding activity represents 22% higher levels than last year (55 new orders on average reported per week in January-August 2014 compared with 45 in 2013) and up by 130% from 2012 levels. (24 new orders on average reported per week in January-July 2012)”, Golden Destiny noted.

Meanwhile, “in the demolition market, the appetite of shipping players shows steadiness from 2013 and 2012 levels with 17 vessel disposals per week, on average. The challenging freight markets stimulated again the willingness of players for disposal. The rebound of activity in the bulker segment may lead demolition business to higher levels for the second half of the year”, said Golden Destiny.