Tight charter market stimulates second-hand sale and purchase enquiries as demolition stalls.
Hardening charter rates are pushing second-hand asset values upwards as carriers look to acquire suitable tonnage before the prices peak.
Some liner companies may consider second-hand vessels ahead of another price surge, though on the flip side, as asset prices are increasing, ship owners may take the opportunity to wait for prices to peak before considering selling tonnage, said shipbroker Braemar ACM.
Volatile market
Additionally, some carriers are looking to the second-hand market to make sure they have the necessary tonnage and to reduce their reliance on charter tonnage as the situation remains tight, particularly for feeder sizes, and with the possibility of a volatile market seeing more demand surges.
One company that has taken the used vessel route is MSC which was active in the second-hand market again this week with the acquisition of the 2007-built Castor N, a 3,091TEU delivered from Szczechin, for a little over US$9 million.
Given the tight feeder market, the broker said that values are also appreciating on second-hand vessels below 2,000TEU.
European buyers
Samudera has sold two Wenchong 1,740TEU sisterships, the Sinar Sumba and Sinar Sabang. Both are geared vessels which have been built in 2008 at Guangzhou Wenchong. The boxships were sold to European buyers –
For larger vessels, from Panamax to 11,500TEU, there is only one ship in order. There is very little spot tonnage for charter during this extended-peak season and the supply situation is likely to be repeated for the next peak season in 2021.
Braemar reports
Additionally, ship owners may opt to fix for 24 months at stronger rates as this option is also available at the moment.
Braemar reports no demolition during this past week and only one delivery, a 1,952TEU ship to CNC Line.
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