DSM's online coastal news magazine for Baltic / EWC / North Sea / Scandinavia

January 2010 - week 3




tonnage under 1500 dwt
Many small vessels still laid up, but see also now laid up tonnage upto <2000 DWT as rates still not cover running costs.
Many owners more negative and willing to sell their vessels.
just abvove 2000 DWT river/sea vessels more and more requested and rates getting better slowly.
Now young tonnage prefered by shippers and older tonnage in lay up.

1500 - 3500 dwt 
On the S&P market more and more activity again, although buyers and decisions being slow.
Price for young quality tonnage reasonable and according (bookkeeping) values. Marketvalues lower but still reasonable.
Sellers should understand that the prices paid back in 2006 and 2007 are definitely history.
Realistic sellers will now be able to find buyers in the EU but also outside Europe.

3500 - 4500 dwt 
Dayrates firming and getting to reasonable levels but still some more cargo should be offered, esspecially from the MED to Northen parts of Europe.
MED exporters seem to see much slower treatment of the "trust-crisis" than the NorthenEuropean.
This segment shows some enquiries in S&P activity, but price ideas between buyers and sellers still bit far away from eachother.
Young quality vessels from West European yards keep their prices firm and this will not change,
but sellers should depraise their ideas, because the golden years are gone forever.
We have been informed by bankers to keep backing up their (young tonnage) shipowners, knowing forced sales will give them a big loss only and helps nobody.
Regretable owners of older ships are being let down. Owners facing SS costs 2010 are facing diffiulties to get finances.
Financing for 2nd hand tonnage seems to get in progress again, but it goes still very slowly.
Here seemingly smaller banks are giving a good example for the bigger brothers !

5000 - 10.000 dwt 
Geared tonnage changing owners at low prices, also heavy lifters don't sell at prices sellers would like to see.
Cash is King, and cashbuyers can still do nice deals.
All newbuilding vessels being delivered this year will not change the market in a positive way.
Many shipowners now seem to think geared tonnage will be their future, but grow of market is not paralell to the quantity of new geared vessels that will appear in the market.
The bigger owners and investors seem to have learned nothing from the past situation.

containers
To many (smaller) feeders in the market and it will stay that way.
A lot of S&P activity in the bigger feeders and containervessels between 900 to 2000 TEU.
Newcomers purchasing medium tonnage to start new lines.
Buyers getting vessels for very low prices, seem to see changes starting up new business.
Owners (US) in the dry cargo sector, also seem to see possibilities in the containermarket now and searching for bigger tonnage.
Boxrates from China to EU seem to be raised, which means there is more activity. Positive news from China points to higher volumes.
In short time the EU feedermarket will have benefits from this.
 

Offshore
Offshore ports in Holland and Norway still showing aht's and osv's iddle, waiting for orders.
Activity still to low. Still new and nearly new OSV's being offered for sale.
Still many older vessel on the market available now at reasonable price from 1 mio for 70 and early 80's built vessels, opening possibilities again for buyers active in exploring/diving/construction and other services as offshore vessel were quit hard to get the last few years.

tugs
Many older tugs are being offered on the S&P market.
Interesting opportunities now for younger shipowners with cash in their pocket.
Tugs very well equiped and pretty modern are being replaced. Seemingly enough work in salvage and ports in Africa and SA and MED.
Young tugs available for sale but not in big masses, which seemingly a positive sign.

bulkers
Handies and handimax as also panamxes changing hans at increased prices.
Western buyers show to be paying more realistic prices and larger vessels to be in demand.
This may be because many vessel laying iddle waiting for discharge (mainly Australia) 
Scraprates seemed to be lower this week, esp Bangladesh and Indian buyers not paying the sellers asking prices and vessels not sold for scrap yet.

tankers
Smaller tankers and chem. tankers in Europe seem not to see increases.
How different from Far East/Gulf/East Africa crude trade where rates have increased quickly and owners seeing now very good dayrates again. VLCC rates increased since newyear more than 200 % !
S&P deals in MR's and bigger show good prices again and forecast is that this will even be better shortly.
On the long term still not shure, but energy demand increased esp. in Far East 

sales and purchase in general.
More and more activity being reported in nearly all segments.
Cash buyers still rule the market in older vessels,  but not only cashbuyers are purchsing. Young tonnage changing hands again and this in large volumes.
Last week many bigger deals have been reported and our feeling is, that the shipping market is recovering.







The above information is our view on the market gattered from our own reliable sources such as shipowners, coleague brokers and recent sale and purchase experiences.
In case some one disagrees with the contents or wishes to share his knowledge or wishes to participate in informing us, eventual on a regular base, we invite shipowners and others with activities in the shipping market, to write to us. Everybody can contact us via the button "mailing list" mentioning North Sea news.