Sales activity remains brisk in the dry bulk market, especially in the supramax sector, with a notable firming of values. Brokers are reporting increased Japanese- and Korean-built vessel sales candidates being circulated for sale. The news follows last week’s public hearing held by the US Trade Representative (USTR) looking into China’s dominance in shipbuilding, including a discussion on potential port call fees for Chinese-built vessels.
“This could in effect create a two tier market for pricing, with perhaps Chinese vessels facing discounted prices versus Japanese and South Korean built vessels thereby obtaining premiums,” broker Gibson suggested recently.
“It seems that USTR proposal has already started to affect the SnP market. This week, 13 bulk carriers changed ownership, with 10 built in Japan and only 3 in China,” Xclusiv Shipbrokers noted in its latest weekly report.
One sale reported this week illustrates the trend towards buying non-Chinese-built tonnage. Hong Kong-based Cido Shipping is reportedly selling its Japanese-built Mitsui 56 design 55,650 dwt Fortune Wing (built 2011) for around $16 m, a substantial price compared to the sale of the one-year-older CS Sonoma, built at Jiangsu Hantong, China, which was reported sold for $11.3 m. This striking price gap raises the question of whether Chinese and non-Chinese asset values are set to diverge dramatically.
