November 2015 marks the launch of VesselsValue’s Small Dry module whereby we shall provide our instant values for MPPs (and heavy-lift), single and tweendeckers, small handys and general cargo vessels. To mark this we wanted to delve a little deeper into the sectors nuances, premiums and discounts.

Average-age-in-Small-Dry

of-vessels-in-type

 

  The sector is relatively old and experiences a much lower rate of fleet renewal than perhaps bulkers or tankers. On VesselsValue the average age of a small dry vessel is 18.3 years compared to that of bulkers (8.6 years), tankers (12.3 years) or containers (10.8 years). Fleet renewal has floundered in recent years; newbuild deliveries peaked in 2008 at 401 vessels being delivered. Almost 50% of these were constructed in Chinese yards, the output being five times that of its nearest competitor, Japan. Yet fast forward six years and only 132 small dry vessels were delivered. In the sector newer vessels tend to lend themselves to a greater level of specialisation with the average age in the MPP Heavy-lift sector sitting at 8.4 years.

Newbuildings-by-country

Tweendeckers, on the other hand, have a much higher average age of 22.9 years. These are an example of vessels that have become increasingly defunct due to improved port infrastructures, increased parcel size and ship design.

 

Premium-if-geared

Contributors-to-value

 

So what premium or discount does a vessel receive for its defining features? The latest fashion/fad of shipping has been the Eco engine. VesselsValue values around 8,500 small dry vessels of which approximately 30 are fitted with an Eco engine. The gross majority of these are heavy-lift MPPs with a few small handys also. So for such a small minority, one would expect a significant premium; we give on average a premium of 13%. The small dry sector is well known for its flexibility and post containerisation there was increasing demand for these vessels to carry containers. This now represents a significant proportion of small dry trade. Around 40% of the fleet carry TEU and the average premium these vessels will receive over non-container carrying vessels is circa 5%.

 

Gear-or-no-gear

Source: http://www.hellenicshippingnews.com/eco-engines-in-small-dry-bulk-carriers-yields-a-13-price-premium-says-vesselsvalue/