Capesize Market: Opportunists Face Dip

Credits: Martin Damboldt/ Pexels

In the past week, there has been a decrease in Bulker values, particularly in the Capesize sector. The sharpest declines have been observed in the values of 15-year-old vessels with a capacity of 180,000 deadweight tons (DWT), which have fallen by approximately 7.87% since the beginning of June, as published on Vessels Value.

Lower benchmarks 

Recent sales in the Capesize Bulker sector have experienced a decline in value, with benchmark deals setting lower values. The current value of a Capesize Bulker stands at USD 20.13 million, down from USD 21.85 million at the beginning of the month. The decrease in values can be attributed to a softening chartering market since mid-May, resulting in a significant drop in rates. However, despite the dip in rates, experienced owners have seized the opportunity to invest at slightly lower values. Notable deals include the sale of BC Atlantic Tiger to Winning Shipping for USD 16.65 million and the sale of Herun Zhoushan to Chartworld Shipping for USD 41.50 million (BWTS fitted).

Rates showing a gain

Recent stimulus measures in China have had a positive impact on the shipping industry, leading to a rebound in rates. Spot rates have modestly improved in the past few days, driven by increased demand for iron ore and greater bauxite volumes. Rates have climbed to 13,163 USD/Day, showing a 42% gain since the beginning of June. Seasonality also plays a role, with Pacific rates firming up as Australia nears the end of its financial year. Despite a decline in Capesize values, overall Bulker values remain high. However, the market has experienced a quiet start to the month for Bulker sales, with fewer reported transactions compared to the previous month. With rates expected to recover in the coming weeks, the outcome for market participants remains uncertain.


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Source: Vessels Value


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