Categories: Business

Second hand vessel deals down 50% in 2023

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THE second hand market for ships has declined to just $7 billion, versus $13.5 billion in the same period of 2022.

In its latest weekly report, shipbroker Xclusiv said that “the global economy is holding its breath as two American banks, Silicon Valley Bank & New York’s Signature Bank collapsed within the past three days.

US authorities raced on Sunday to stem jitters about the health of the nation’s financial system, pledging to fully protect all depositors’ money while also giving any banks squeezed for cash easier terms on short-term loans. Authorities are aiming to strengthen confidence in the banking sector and avoid any spill over effects. How and for how long these collapses will affect economy and whether there will be aftereffects for the shipping industry and finance are yet to be seen”.

Meanwhile, “back to the shipping industry, the SnP market is still trying to find its footing within 2023, as both the quantity and value of SnP transactions have decreased by approximately 50% compared to same time last year. (2023: 240 sales – 7 billion USD worth / 2022: 485 sales – USD 13.5 billion worth). Focusing on bulk carrier and tanker trades, there is a 48% y-on-y decline in bulk carrier transactions & 38% decline in tankers. However, the value of tanker SnP transactions in 2023 until today, is up by 14% year-on-year (from $3.1 billion to $3.54 billion) reflecting the firm tanker freight rate market and appreciated vessel values. The demand for vessels is three times greater than the supply of vessels in the bulk carrier SnP market. 60% of the vessels available for sale are supramaxes & handysizes, & 60% of the vessels are 11-15 years old. There is a considerable demand for vessels from buyers, and there are other parties trying to profit from the market’s fall.

The Handysize, Supramax, Panamax, and Kamsarmax sizes receive the majority of enquiries, and most buyers are looking for vessels between the ages of 6-20.

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