With two months of 2017 still to go, the number of secondhand sales this year has reached the highest annual level since 2007, even if this has not been the case in value terms, with secondhand prices hovering at low levels this year in many sectors. Sales activity has been particularly firm in the bulkcarrier and boxship sectors, and the usual owner nations have been actively buying and selling vessels.

Sale And Purchase Swarm

 As of start November 2017, 1,400 vessels of a combined 79.4m dwt have been sold on the secondhand market this year, the largest annual number since 2007 and the second largest in terms of dwt. On an annualised basis, the total volume in dwt terms would become the highest annual sales level on record. Despite this firm level of sales activity, in value terms total sales are still below historical highs, with year to date sales totalling $19.4bn, significantly lower than the 2007 value and also below 2014-2015 levels. This is partly a consequence of numerous vessel sectors experiencing relatively low secondhand prices this year, with the Clarksons Secondhand Price Index beginning the year at 75 points, its lowest recorded level since 1988, although the index has begun to increase again, with the start November figure at 91 points.

Which Markets Are Buzzing?

 There have been particularly firm sales volumes so far this year in both the bulkcarrier and containership sectors. 573 bulkers of a combined 40.4m dwt have been reported sold so far this year, the second highest level on record after 2007 on an annualised basis. In numerical terms, 62% of bulker sales have been smaller Handymax and Handysize units, while Capesize and Panamax vessels account for a combined 38%. Meanwhile in the containership sector, 250 ships of a combined 0.95m TEU have been reported sold, already an annual record in TEU terms. In the tanker sector, 284 vessels of a combined 23.9m dwt have been reported sold, an amount comparable to historical average levels.

Greek Owners : Busy Bees

 As has traditionally often been the case, Greek owners have been the most active buyers and sellers of secondhand tonnage in the year to date, selling a reported 194 units of a combined 13.4m dwt, accounting for 17% of global sales in dwt terms. While Greek owners have been in the top two owner nations (in terms of tonnage sold in 2017 so far) in all three major vessel sectors, the other leading spot has been occupied by US owners in the tanker sector, Chinese owners in the bulker sector, and German owners in the boxship sector. Greek owners have also been the most active reported buyers of tonnage so far this year, acquiring 214 units of 17.2m dwt. In fact, 33% of year to date sales in dwt terms have reportedly involved either a Greek seller or buyer.

 So, the secondhand sales market has been highly active in 2017 so far, and total sales dwt volumes look set to reach record levels by the end of the year. This has been particularly driven by larger sales volumes of containerships and bulkcarriers, while Greek owners have continued to be the dominant sale and purchase players. Against this backdrop, it will be interesting to see whether the momentum in the secondhand market can continue into 2018 and beyond.

(Source : Clarksons)