Shipowner TMI cashes in on ‘historically high’ bulker values
The owner has agreed to sell four handysize vessels and completed the sale of three more last quarter
TMI successfully completed its acquisition of Singapore-based Grindrod in August 2024 and continues to reduce its debt as it takes advantage of high newbuilding and second-hand prices
TAYLOR Maritime Investments has agreed to sell four handysize bulk carriers and completed the sale of three more in the third quarter of 2024, taking advantage of newbuilding and secondhand values that “remain well above historical levels”.
The owner agreed to offload four bulkers built between 2009-2020 at sizes between 28,000 dwt-38,000 dwt, with one 2020-built handysize completing in the quarter for gross proceeds of $28.5m.
TMI completed the sale of three further bulkers in the third quarter of 2024 too, selling a 2012-built, 28,000 dwt handysize for $11.9m, a 2009-built, 32,000 dwt handysize for $13m and a 2024-built 40,000 dwt handysize for $35.4m.
Chief executive Edward Buttery said his company had sold the vessels at “historically high values”.
Buttery said TMI had reduced debt by $55.6m and expects to make a further $20m in debt repayments when agreed sales complete this quarter.
Newbuilding and second-hand assets remain high thanks to “favourable supply side dynamics”, TMI said. Shipyards were operating near capacity, it said, with orders from “top tier shipyards” not available for delivery until the end of 2027 or early 2028.
TMI does not expect the recent expansion of shipbuilding capacity to disrupt supply forecasts for geared bulkers, as shipyards will choose to prioritise orders from higher-margin segments.
The London-listed shipowner also completed its acquisition of Singapore-based Grindrod in August, after its initial purchase in 2022.
Since then, TMI has sold 26 vessels, including eight in this financial year, to leave its fleet at 34 Japan-built vessels at the quarter’s end.
Those 26 sales will have resulted in $198m overall reduction in debt when sales complete in the next quarter, leaving TMI’s debt-to-asset ratio as 35.1% (down from 35.4% in June 2024).
Aside from its S&P activity, TMI said it was expecting a strong fourth quarter thanks to increased tonne-mile demand from Red Sea reroutings.
Beijing’s stimulus measures could improve dry bulk volumes, TMI said, while the US Federal Reserve’s September interest rate cut has also “provided grounds for optimism, although clear risks remain”.