Panamax Synergies Realised through Asset Plays

0
(Image Courtesy: Songa Bulk AS)

The acquisition of the Songa Bulk fleet by Star Bulk provides their new owners with a fleet renewal opportunity in the strong Panamax bulk carrier market.

Spot market earnings for ships of this size have been moving steadily upwards since the start of 2016, and supply and demand fundamentals are supporting further upside.

 

This purchase allows Star Bulk to expand their fleet on the water immediately to capture the value in the strong market, while also driving down their average Fleet age in the segment.

Asset values for a 10 year old Panamax Bulker have just now moved into line with their long term median value. Given the favourable tonnage balance, these assets should appreciate further, allowing for a possible asset sale of Panamax sized vessels.

(Source: Vessels Value)

Sea News, May 18