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The Global Lockdown \u2013 as the International Monetary Fund has termed this year\u2019s recession \u2013 has also put the brakes on secondhand purchases. It\u2019s not just that shipowners want to hold on to their cash in this economically uncertain period, it\u2019s the difficulties of sealing a deal in these quarantined times \u2013 how to inspect a ship, how to get crew in place? As a result April is shaping up to be one of the most quiet months on record for concluded ship sales.<\/p>\n
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Brokers have been advised by the International Transport Intermediaries Club (ITIC) that they should consider ship valuation wordings due to the coronavirus.<\/p>\n
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During these unprecedented times, ITIC recommends that brokers should consider stressing the current unusual market conditions in their ship valuation certificates.<\/p>\n
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Following the financial crisis of 2008, brokers providing valuations included additional wording in their certificates to reflect and take into account the state of the market at the time. These wordings highlighted that the lack of comparable sales made the assessment of values uncertain.<\/p>\n
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Considering the current ongoing coronavirus outbreak and the disruption to the market, a number of brokers are reviewing their valuation certificates.<\/p>\n
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Noticeably in a weekly report from earlier in the month, Clarksons, the world\u2019s largest shipbroker, added a proviso when providing S&P details.<\/p>\n
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\u201cDue to the market turbulence originating from the current pandemic, the sale and purchase market is becoming increasingly complex including a widening of price ideas between buyers and sellers,\u201d Clarksons noted, adding that it\u2019s important to take this complexity into account when viewing price assessments and indices.<\/p>\n
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\u201cThe almost non-existent activity on the SnP front is evidence of the uncertainty that continues to prevail across all sectors, while as the gap between sellers\u2019 and buyers\u2019 ideas remains fairly wide in most cases, we expect the market for the remainder of April to be equally quiet,\u201d Greek broker Intermodal noted in its latest weekly report.<\/p>\n
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On the dry bulk S&P market, Allied Shipbroking witnessed a further plunge of activity this past week.<\/p>\n
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\u201cThe uncertainty that dominates the global economy at the moment and the poor freight market despite the last few weeks of improvements are factors that have diminished buying appetite. However, in the case that requested prices start to drop significantly in the following weeks, we may see a slight gear up in action,\u201d Allied Shipbroking said, adding that things have been more stable on the tankers side as the freight market continues to fluctuate within a satisfactory range in almost all segments.<\/p>\n
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\u201cThe COVID-19 situation may have curbed some interest from buyers, but the healthy fundamentals, especially after the ramp up in oil trade noted lately, will have as a result the upkeep of buyers\u2019 appetite,\u201d Allied Shipbroking said.<\/p>\n
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In the containership S&P market, according to Braemar ACM Shipbroking, interest remains subdued as the lockdown continues, however, both buyers and sellers have been actively working together to find solutions to delivering vessels.<\/p>\n
splash247<\/p>\n","protected":false},"excerpt":{"rendered":"
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