According to relevant data, the scale of global second-hand ship transactions has dropped to $7 billion so far this year, compared to $13.5 billion in the same period in 2022. "The global economy is facing serious challenges as the collapse of Silicon Valley Bank and New York Signature Bank," said Xclusiv, a shipping brokerage company, in its latest weekly report. The US government has promised to fully protect the funds of all depositors, while providing more relaxed short-term loan conditions for cash-strapped banks. The purpose is to enhance people's confidence in the banking industry and avoid any spillover effects. It remains to be seen how long these will affect the economy and whether they will have an impact on the shipping and financial industries.
Xclusiv's report shows that the number and total volume of second-hand ship transactions worldwide have decreased by about 50% compared to the same period last year so far this year. As of 2023, 240 ships have been traded, with a trading volume of $7 billion; During the same period in 2022, 485 ships were traded, with a transaction value of 13.5 billion US dollars. Among them, bulk carrier transactions decreased by 48% year-on-year, while oil tanker transactions decreased by 38% year-on-year. However, it should be noted that the transaction volume of second-hand oil tankers increased by 14% year-on-year (from $3.1 billion to $3.54 billion), reflecting the upward trend in the oil transportation market and ship prices. In the bulk carrier trading market, demand has tripled supply. 60% of the ships available for sale are super flexible and flexible, and 60% are 11 to 15 years old. There is considerable demand for ships from buyers.
Among them, the most inquiries were received for flexible, ultra flexible, Panamax, and Kamsa ships, and most buyers were looking for ships between 6 and 20 years of age. More popular are the Kamsa, Ultra Handy, and Handy ships with a ship age of 11 to 15 years or 6 to 10 years. In the second-hand tanker market, buyers prefer ships with a ship age of between 11 and 20 years. It is worth noting that investors have a strong interest in older ships, especially ultra large oil tankers. Nearly half of the inquiries are for vessels older than 20 years, about half involve chemical tankers and small oil tankers (below 30000 dwt), and another 25% involve MR1 and MR2 tankers. From the seller's perspective, the supply level of ships is limited, with over 65% of ships aged between 11 and 20 years, over half of the ships for sale being small and chemical tankers (less than 30000 dwt), and VLCC and Suezmax tankers accounting for less than 10%.
Xclusiv stated that at present, the freight rates of Capesize, Panamax, and Handy bulk carriers have reached a higher level since mid to late December 2022, and the freight rates of ultra large vessels have returned to the level of mid November last year. Especially for small ships, the market is expected to improve.
Source: International Shipping Network Shipping Information