Big Jump in First Quarter Sale and Purchase Activity

Sale and purchase business in secondhand vessels showed a 40% jump in volume in the first quarter of 1991, over the average of the last half of 1990, according to the latest half yearly “World Trade Review” produced by Wescol International Marine Services. The review notes that, after slipping by 6% in the first half of 1990, dollar turnover in the global secondhand cargo ship market sustained a further massive 50% contraction in the second six months, falling to $3.8bn from $7.7bn in 1989. Hardest hit were large tankers and small “Handy size” bulk carriers and ships in the 10 to 14 year old category.

Early in 1991, the fall in ship prices leveled out and sales volume was up by an average of 40% from the previous six months. However, Wescol counsels caution against excessive optimism, warning that the recovery has been lacking depth. Greek owners are admittedly in good financial shape, but they are held back by uncertainties about the timing and strength of the coming economic and trade recovery and by lending banks’ newly found prudence.

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