S&P market slows but prices indicate demand still firm
Despite a slowdown from the frenetic pace seen in ’21, sale & purchase activity remained strong in the first half of ’22 and well above historical averages.
Carriers continued to seek out revenue-generating assets often at astronomical prices, though buyers are now becoming more cautious due to rising uncertainties.
Container companies exchanged a total of 189 ships of 653,000 teu in the first half of the year, the 5th busiest six-month period on record.
This was despite a 40% drop in transactions year-on-year, both by number and capacity, in part due to a lack of charter-free sales candidates.
Indicating that demand remained robust, prices continued to rise in the first half of the year with several deals done at eye-popping levels: in January, CMA CGM took the 6,881 teu RHODOS for USD 140 M.
The vessel was ordered in 2011 for just USD 75 M.
Meanwhile in March Wan Hai Lines paid USD 109.5 M for the 5,527 teu ALLEGORIA, a price tag representing more than double the vessel’s 2003 estimated newbuilding value of USD 53 M.