2021: A mixed bag for the expedition
The dry bulk market fared much better than that of tankers in 2021, as the pandemic continued to wreak havoc in many markets, affecting demand and supply. In its latest weekly report, Xclusiv Shipbrokers said that “as we approach the end of 2021, we have looked at Baltic (dry / wet) indices and used vessel prices. Without a doubt 2021 has proven to be robust for dry bulk which reached its highest levels of the last 13 years, in October 2021. All the dry indices started the year at low levels, BPI, BSI and the BHSI having recorded their lowest levels of 2021 in early January and BDI & BCI in mid-February. The high demand for dry bulk and the reduced supply of ships led to creative shipping solutions, as we saw logs being transported on capesize bulk carriers and bulk carriers of various sizes reclassified to be able to transport containers. The supply of ships has been further constrained by port congestion, quarantine and crew change issues ”.
“On October 7, BDI and BCI hit 5,650 and 10,485 points, respectively – these levels were the highest since September and August 2008, while later in October, BPI, BSI and BHSI peaked at 4,328, 3,624 and 2,062 points, levels not seen since May 2010 for BPI & September 2008 for BSI & BHSI. It should be noted that despite the recent dry cooling of the indices during the last two months, their levels remain very healthy compared to the last two months. year as a whole. Specifically, BDI and BPI end the year at around 75% up from their lowest level in 2021, BCI up by almost 100% and BSI and BHSI up by around 130%. % according to the same metric. In the past two weeks, however, BDI & BCI have lost over 30% & 50%, BPI around 16% and BSI & BHSI around 10%. The peaks and troughs have not been rare during the year with significant fluctuations mainly for the BDI and the BCI. As a result, BPI had experienced this volatility, with BSI and BHSI showing the fewest rises / falls, ”said Xclusiv Shipbrokers.
According to the shipping broker, “used bulk carrier prices have more than doubled in some size segments in 2021 from their December 2020 levels. The biggest gains were recorded by 15-year-old vessels, with caps rated up to 70%. plus, 100% higher panamaxes, 130% higher supramaxes and 110% maneuverable. For example, the ex “Cape Elise” -174K / 2005 SWS sold for 10.5 thousand USD in mid-December 2020, while we note the change of hands in mid-October 2021 of the ” CHS Magnificence ”-172K / 2006 Bohai for 19.5 USD mills. On the Panamax segment, the ex “CMB Sakura” -75K / 2006 Sanoyas was sold for 8 million USD at the end of December 2020, while the “Coral Diamond” -76K / 2007 Imabari is reported sold for 16.2 million USD at the end of December 2020. December 2021. On supramax sector “Jag Roopa” -52K / 2006 Tsuneishi was sold in December 2020 for USD 6.9 mills, while 2 weeks ago the “Feronia” -56K / 2007 Mitsui Tamano was sold for USD 16.5 mills. On the handies we note the sale in November 2020 of the “AEC Ability II” -37k / 2006 Saiki at USD 6.5 mills & in November 2021 the sale of the “Super Lydia” -37k / 2007 Saiki for USD 13.1 mills ” .
In the meantime, “for the wet market, 2021 was a year of recovery from 2020, when the BDTI hit its all-time low of 403 points. The BDTI and BCTI at the time of writing are at 786 and 788 points, an increase of 70% and 104% respectively from the 2020 close. But the index gains are not based on fundamental improvements but rather on expectations that, with a perceived exit from the Covid era being around the corner, tanker rates will be recovered. This shift was however wider than initially expected with a recovery initially planned for the second half of 2021, then postponed to the fourth quarter of 2021, and now expected during the first half of 2022, if omicron allows it, ”said Xclusiv.
He added that “in the oil tanker market, stocks have generally held their prices and in some cases, particularly for RMs and aframaxes, the reported levels have taken the market by surprise. Examples include the sale of the Samsung “Advantage Arrow” 115k / 2009 Samsung and “Advantage Avenue” 115k / 2010 from Advantage Tanker for a block of 52 thousand USD, although the employment is attached – levels which were then reflected in the non-charter sale of SOCAR products. “Silver” 107k / 2010 Tsuneishi & “Gold” 107k / 2010 Tsuneishi at $ 49.6 million in bulk. Overall, 2021 has seen a very healthy – and often opportunistic – buying appetite for oil tankers who have a life expectancy long enough to get through the Covid era and with it bring more profitable oil markets. Beyond that, how the wet market will respond to decarbonization and the effort to reduce emissions through alternative energy technologies remains unknown, ”concluded Xclusiv Shipbrokers.
Nikos Roussanoglou, Hellenic Shipping News Worldwide