“Knives are being being sharpened for the Posidonia fatted calf and focus is clearly elsewhere for now,” says one Asia-based broker on today’s S&P markets. The volume of transactions has clearly slumped in recent days, as evidenced in the VesselsValue chart below. “No doubt we’ll see some big headlines following the orgy, but for now most people seem to be keeping their heads down,” our broking source says, suggesting the upwards price trajectory has stalled. Despite a more muted May, especially for tanker sales, 2024 is still on track for another bumper year of ships changing hands. In recent years secondhand sales activity has set new marks. 2021, ‘22 and ‘23 have been the three most active years on record by some margin, with an average of 2,349 units and 135m dwt changing hands per year according to data from Clarksons Research who note that a similar run-rate has continued in 2024, with around 50m dwt reported sold in the year to date. Bulker S&P activity fell in May, with a total of 30 bulkers sold so far this month, compared to 69 in May 2023, according to data from VesselsValue. Bulker earnings peaked at the start of the month but have now settled. However, spot rates are up year-on-year across all bulker sectors with capesizes currently up by around 35% year-on-year. Headline S&P transactions in dry bulk this month included the eight-year-old Fomento One newcastlemax, sold to Greek interests for $55.9m, while the 15-year-old Corinthian Phoenix cape was sold to Hayfin Capital for $30m. Total tanker sales have fallen by 76% year-on-year with just 18 sales reported in May 2024, compared to 80 during the same month last year, according to VesselsValue. Values for older LR1s saw a considerable increase this month with 20-year-old vessels of 70,000 dwt up by 7.66% month-on-month to $22.22m. Key tanker sales this month included the 19-year-old Euronike suezmax sold to undisclosed buyers for $40.5m, while the 18-year-old Gulf Esprit MR2 was picked up for $22m. Month on month container S&P activity was down in May, with just five straight sales confirmed so far, compared to 10 deals in April, a decrease of 71% year-on-year %. However, rising prices in the charter market ensured secondhand asset values continued to appreciate, benefitting from a prolonged Red Sea crisis and reduced global supply that looks likely to last until the years end. The 15-year-old, 4,250 teu Navios Lapis was sold to Chinese interests for $24m, with another Chinese party coming in for the 27-year-old, 1,510 teu Ren Jian 5, paying $4.75m for the vintage boxship. TagsSplash Extra Archive Splash Extra May 2024