Dry Bulk Shipping: Second Hand Prices Reach Year-to-date Highs

More specifically, within early Q3 2024, 5- and 10-year-old Capesize BCs were valued at around USD 64 mills and USD 45 mills respectively, 17% and 27% up compared to early January 2024 values. Similarly, 5- and 10-year-old Kamsarmaxes climbed to USD 39.5 mills and USD 30 mills in Q3 2024, almost 18% and 23% up respectively since January 2024 values. Ultramax 5- and 10-year-old prices increased by 19% and 38% from January to August 2024 and topped at USD 36.2 mills and USD 28.2 mills. Last but not least, the 5 and 10-year old Handysize prices reached also their year-to-date high within Q3 2024 and were valued at around USD 28.8 million and USD 21 million respectively, almost 7% and 17% up compared to early January 2024 values”.

“Nevertheless the outlook for second-hand dry bulk prices has shifted, as dry bulk market rates – excluding Capesizes – have dropped considerably over the past three and a half months. The Kamsarmax 5 TC Average closed the week at USD 9,951/day, almost 35% down compared to 2nd August 2024. A similar trend has been observed in the Ultramax 11 TC Average which currently pays USD 12,470/day, down by 26% compared to early August 2024, while the Handysize 7 TC Average has lost around 12% during the same period and closed the week at USD 12,079/day. The Capesize 5 TC Average, characterized by its volatile nature, is currently paying USD 21,778/day, up 13% from early August 2024 levels. (Reversing a decline from USD 14,811/day in late October 2024)”, the shipbroker said.

According to Xclusiv, “the weakening of time charter rates has led to a correction in second-hand prices, especially for 5-year-old and 10-year-old Kamsarmax, Ultramax, and Handysize, which has seen prices decline by 5% to 17%. More specifically, Kamsarmax prices have been hit the hardest, with a 13% decline for 5-year-old vessels and a 17% decline for 10-year-old vessels from their Q3 peak. Handysize prices have decreased by 8% for 5-year-old vessels and 10% for 10-year-old vessels. Meanwhile, Ultramax prices have softened by 5% for 5-year-old vessels and 13% for 10-year-old vessels since their Q3 peak. The Capesize segment, while volatile, has shown resilience compared to other segments, with 5 and 10-year-old prices remaining stable from their Q3 peak.

This week, we saw an abundance of vessels hitting the sales market. The Capesize and Ultramax/Supramax sectors were quite active, with 6 vessels in these categories coming for sale. The week likewise saw many vessels changing hands, across numerous sectors, as buyers look to invest at discounted levels”, the shipbroker concluded.