BW Dry Cargo is being linked with another kamsarmax buy. The dry bulk unit was created by BW Group this April to focus on bulkers ranging in size from 50,000 dwt to 85,000 dwt.
Sources said that BW Dry Cargo has paid Mitsubishi Corporation US$14m for 81,500dwt Mighty Sky. The bulker was built in Japan six years ago.
Japanese dry bulk tonnage has been in huge demand this year, with any ship coming on the market generally receiving a double digit number of inspections from owners around the world.
Suggesting the deal was done, Christian Bonfils, CEO of BW Dry Cargo, would not be drawn on prices, said "I can't comment on prices, but confirm that we have bought five vessels."
Data provided exclusively by online pricing platform VesselsValue.com shows just how dramatically Japanese owners have been shedding dry bulk tonnage in 2016.
In the first seven months of the year, Japanese owners sold 83 vessels – equating to 6.82m dwt – for a total of US$886.46m. Greece was the second biggest seller in the same period with 71 ships, totalling 4.9m dwt, worth US$521.5m. Japan was also the top seller of bulk carriers in 2015.
The top three Japanese sellers in the year to date have been Sumitomo Corp, Daiichi Chuo and Nisshin Shipping.
Globally, dry bulk sales have accelerated in the first seven months of the year, according to VesselsValue.com with 323 ships equating to 24.4m dwt sold, whereas in the same period last year, 251 ships equating to 19.07m dwt were sold. However, despite the increased volume of sales, the total price for all the bulker sales this year is down on an annual basis.
The Vietnamese are getting more adept at shipping asset plays.
Tan Binh Shipping, which took the 10-year-old 33,000dwt Angel Jupiter bulker, from Sanko Steamship this March for US$5m, has just sold it on for US$7.2m to an unspecified European owner.
Brokers were unable to identify the buyer but the sale of the ship, since rechristened Tan Binh 234, marks a sign of new dexterity at the Vietnamese owner, which has been very active in the S&P markets for the past 18 months. It also reaffirms market sentiment that dry bulk prices have bottomed out.
In another rare example of a Vietnamese owner performing an asset play, Haiphong-based Viet Long JSC last month pocketed a tidy US$1m profit from a quick bulker turnaround.
The Southeast Asian owner bought the Bianco Venture handy bulker at the beginning of the year for US$5.2m. The Oshima-built ship, rechristened Great Pride, has now been bought by Hong Kong's Taylor Maritime for US$6.2m, according to brokers.
The Japanese have been the most active owners in 2016 in terms of selling off dry bulk tonnage amid the dire freight rate market environment.
Iino Kaiun Kaisha becomes the latest to join the selling frenzy. It has pocketed US$9.4m from selling the eight-year-old Atlas Island panamax. The 76,554dwt Imabari-built vessel was taken by Monaco-based Transocean Maritime Agencies, according to brokers.
Japanese tonnage has been in high demand among dry bulk owners seeking bargains this year, with any ship coming on the market generally getting double digit numbers of inspections.
South Korea-based shipping company Chang Myung Shipping has sold two 179,185dwt Capesize bulk carriers to an unnamed buyer, its compatriot, show data provided by VesselsValue.
The two Panama-flagged vessels, C Blossom and C Atlas, were each sold for US$18.7m.
C Blossom and C Atlas were built by South Korean shipbuilder Hyundai Heavy Industries (HHI) in 2009.
The two bulkers feature a length of 292 meters and a width of 45 meters.
Chang Myung Shipping's fleet currently consists of 16 owned vessels – four Capesize vessels, two Kamsarmaxes, three Panamaxes, two Supramaxes, two Handymaxes, two Handysize carriers and one VLCC.
Denmark-based Clipper Group has taken over two of four 32,000dwt Handysize bulk carriers bought from its compatriot D/S Norden this June.
The two vessels, to be named Clipper Kastoria (ex. Nord Hong Kong) and Clipper Panorama (ex. Nord Vancouver), have been taken over by the group's internal technical management, Clipper Fleet Management, and dry docked at Besiktas Shipyard in Turkey.
The ships were being docked one after the other, undergoing painting and maintenance works.
According to Erik Carlsen, Head of Clipper Fleet Management, Clipper Kastoria is expected to start trading soon, while Clipper Panorama was dry docked on Aug. 18.
The two remaining vessels to be delivered to Clipper include Nord Houston and Nord London.
The four bulkers were built in 2011 at Chinese Jiangmen Nanyang Shipyard (JNS). They feature logs and grabs fitted and will enter the Clipper Logger Pool.
Danish shipping company J. Lauritzen has confirmed it opted to sell two Supramax bulk carrier newbuildings and cancel a part-owned handysize bulk carrier during the second quarter of 2016 as it executed further cash improving initiatives.
The company narrowed its quarterly loss to US$22.4m for the second quarter of 2016 from a loss of US$117.6m reported in the same period a year earlier. The company's revenues for the period dropped to US$68m from US$91m seen in the same quarter in 2015.
J. Lauritzen's loss for the first six months of 2016 amounted to US$30.6m, against a loss of US$144.5m in the first half of 2015, while its revenues for the period dropped to US$155.4m from US$180.6m seen a year earlier.
"Despite some improvements in Q2, dry cargo markets remained at historically depressed levels due to sustained weak trade growth and tonnage oversupply, which significantly impacted our EBITDA. Continuing cash building initiatives, including trimming of our owned dry cargo fleet caused additional write-downs negatively impacting the bottom-line," Jan Kastrup-Nielsen, President & CEO, said, adding that "our gas carriers performed largely as expected."
Total assets amounted to US$625.9m as at June 30, 2016, down from US$858.6m seen at year-end 2015, mainly due to the sale of assets and cancellation of newbuilding contracts.
Namely, the company's two 61,000dwt bulk carriers, currently under construction at China's Dalian Cosco Kawasaki Shipyard, were sold in May and August 2016, respectively.
According to data provided by VesselsValue, the newbuildings, which were sold for US$18.3m and US$18.4m to Danish BW Dry Cargo and US-based Raven Capital Management, are scheduled for delivery in 2016.
One of the year's most aggressive bulker buyers has concluded a deal with one of the most consistent sellers.
Bangladesh's SR Shipping has bought the six-year-old Ten Yu Maru supramax from Japan's Kambara Kisen for US$11.7m.
Sources describe the price as very firm, around US$1m than a sister ship recently sold.
SR Shipping is understood to be big fans of Tsuneishi-built supramaxes. Tsuneishi is the shipbuilder sister company of Kambara Kisen. SR Shipping has been one of the fastest growing dry bulk firms this year while Kambara Kisen, like many Japanese owners, has been shedding tonnage fast amid the downturn.
Navios Partners has agreed to sell its containership MSC Cristina (13,102 dwt, built 2011) to an unnamed third party for a net price of US$125m, including its charter.
Delivery of the vessel to the buyer is scheduled for early 2017, but the sale remains subject to signing of "definitive documentation", the NYSE-listed shipowner said in its financial results for the first half of 2016.
The Korean-built vessel commenced a 12-year timecharter to MSC in February 2015 at a daily rate of US$60,275. The owner has the option to terminate the agreement after seven years.
Separately, Navios revealed that it has renegotiated the charters of five containerships to Hyundai Merchant Marine (HMM) in exchange for the struggling Korean line's securities.
The daily hire of the five ships was reduced by 20% to US$24,400 per day pro rata, effective from July 18 until Dec. 31, 2019.
From Jan. 1, 2020, the daily rate will be restored to the full rate of US$30,500 per day until redelivery, Navios said.
Navios Partners has already sold the 3.7m shares in HMM it received as part of the renegotiation agreement, which generated net cash proceeds of approximately US$21.3m.
Navios also received a US$7.7m principal amount of HMM's senior, unsecured notes, which will amortise "subject to available cash flows" and will accrue interest at 3% per annum, payable on maturity in July 2024.
After it earlier reached deals to sell three of its bulkers, the owner and operator of Supramax dry bulk vessels Eagle Bulk Shipping has decided to dispose of another ship for net proceeds of US$4.2m.
The vessel in question is 2002-built MV Kittiwake, which features 53,146 dwt.
During the second quarter of the year, the company concluded the earlier announced sales of MV Peregrine and MV Falcon, raising a total of US$5.8m, and subsequently finalized the sale of MV Harrier for net proceeds of USD 3.2 million.
The company opted for the additional sale as it booked a net loss of US$22.5 million for the second quarter of 2016, compared to a net loss of US$27.5m seen in the same quarter a year earlier.
Net revenues for the quarter increased to US$25.6m from US$22.6m recorded in the second quarter of 2015, mainly due to an increased number of freight voyages as well as increased available days due to chartered in vessels.
In July, the company entered into an agreement to raise US$88m in gross proceeds through a sale of its common stock, which is scheduled to close on Aug. 10, 2016, with proceeds targeted for the acquisition of dry bulk vessels and general corporate purposes.
"In the midst of a historically weak drybulk market, Eagle Bulk's second quarter was bookended by two milestone achievements as we seek to re-position the company for future success. First, we entered the quarter having completed a comprehensive balance sheet recapitalization that significantly improved our long-term financial flexibility. Then, subsequent to the quarter's close, we raised nearly US$90m in growth capital through a common stock private placement," said Gary Vogel, Eagle Bulk's CEO.
He added that these moves are expected to enable the company to commence a fleet growth and renewal program while developing its commercial operating platform.