Precious Shipping Pcl., Thailand’s second-largest sea-cargo company, plans to replace its 25 oldest vessels after ship prices fell by more than half amid slumping demand for iron-ore and coal shipments. “This is the opportunity of a lifetime,” chief executive officer Khalid Hashim said in a Bloomberg TV interview in Bangkok. Ships can be bought “at very affordable prices. Vessel prices have dropped in line with a 94- percent plunge in rates that has pushed shipping lines, including Ukraine’s Industrial Carriers Corp., into bankruptcy. A secondhand 28,000 deadweight ton ship now costs less than $20 million and prices may fall further, Hashim said.
“It is worth replacing old ships in a bear market like this,” said Raenoo Bhandasukdi, an analyst at Capital Nomura Securities Pcl. in Bangkok. “They won’t get good rates and maintenance costs will be high.”
Precious Shipping, which operates 44 vessels, expects to begin purchasing newer vessels in the first quarter of next year. It plans to buy ships with capacities of as much as 35,000 deadweight tons.
“It’s a good time to buy as they will get them very cheaply,” said Raenoo. Prices may fall to as low as $10 million, she added. She rates the stock “buy.”
“It is worth replacing old ships in a bear market like this,” said Raenoo Bhandasukdi, an analyst at Capital Nomura Securities Pcl. in Bangkok. “They won’t get good rates and maintenance costs will be high.”
Precious Shipping, which operates 44 vessels, expects to begin purchasing newer vessels in the first quarter of next year. It plans to buy ships with capacities of as much as 35,000 deadweight tons.
“It’s a good time to buy as they will get them very cheaply,” said Raenoo. Prices may fall to as low as $10 million, she added. She rates the stock “buy.”