In International Shipping News 22/07/2016
Source: Vessels Value
VesselsValue (VV) has analysed vessel buying activity between 1 July 2015 and 30 June 2016 with the aim of identifying the geographical regions that were the best negotiators of the prices paid for vessels. One way of assessing a “good negotiation” is by comparing the difference between the VV Market Value on the day of the sale and the reported sale price (shown as “% Above or Below VV Value” on the chart below). In other words, who paid below the fair market rate at the time. The chart gives an indication of which geographical regions bought vessels at a discount.
On this basis, the regions of Scandinavia, the Mediterranean, and France-Belgium, generally bought vessels below the fair market value, and therefore, these regions are seen as the best negotiators. Ultimately, the performance of the different markets in the future, will determine if the purchases were really good.
What constitutes a good negotiation? A good negotiation could be defined as one that achieves a price below the current market value. In the tables below, VesselsValue (VV) has measured the difference between the reported purchase price and the VV Market Value on the day of the sale. A good negotiation could be said to be one where the difference is significantly below the VV Market Value, i.e. -5% or lower.
Ship owners in this region are particularly savvy spenders. The “saving” of nearly USD 100m on containership spending is equivelent to the price of two 5-year old Suezmax tankers in the current market.
Source: Vessels Value
