JP Morgan Secures Profitable Gains in Cape Sale

JP Morgan's offices
Updated Published

JP Morgan has emerged from the shadows this month, becoming one among numerous prominent shipping entities involved in active capesize market transactions. In this instance, the financial participant is focused on securing a lucrative return by divesting a colossal bulk carrier it acquired from the Japanese shipping giant Nissen Kaiun back in 2018.

The recent sale underscores the notable price fluctuations within the secondhand cape market. According to sources, the bulker True Cartier, owned by Global Meridian Holdings under JP Morgan Asset Management, was acquired for just under $41 million. This marks a new benchmark for the ten-year-old Imabari-built cape with a deadweight tonnage of 182,000.

In November, there were indications that the same ship had been traded for $4 million less, but it's essential to emphasize that this particular transaction was never concluded.

The party set to acquire the ship has not been disclosed yet. However, European players, including Oldendorff from Germany, have demonstrated interest in the vessel.

If the identical bulker had been offered for sale at the same period last year, its market value would have been roughly $6 million lower. True Cartier has undoubtedly proven to be a profitable asset for the bank, having been purchased for $37 million in October 2018.

In the current month, more than 13 transactions for the sale and purchase of Capesize vessels of traditional dimensions have been successfully completed. Prices have been on the rise since hitting a low point in June.