A NYK Line capesize bulker has been forecast to set a new benchmark level in the secondhand market as spot rates for large bulkers reached their strongest levels in a decade.
Offers on the Japanese-built, 181,356-dwt Frontier Phoenix (built 2011) are reported to be due later this week, according to shipbrokers.
“We are expecting a fresh benchmark to be set,” Galbraith's said in its weekly sale-and-purchase report.
“There were reportedly five parties inspecting, but we would not be surprised if more turned out to offer.”
The shipbroker said amongst plenty of firm enquiry, it was seeing “a distinct tightening” in the supply of real sales candidates, which was causing “ever firming pricing”.
Galbraith's said the last equivalent sale was the 181,360-dwt Bulk Denmark (built 2010), which sold in July for a price in the low-$30m mark.
Some 71 capesize bulkers have been reported sold in the year-to-date, according to Clarksons. This compares with 77 in the whole of 2020.
A new benchmark for newcastlemax bulkers around the 15-year-old mark has also been set recently, according to UK shipbroker Affinity (Shipping).
Comparable sale
The Richard Fulford-Smith-led broker said Greek buyers have been linked to the acquisition of the 203,137-dwt Cape United (built 2007) at $22m.
“It’s interesting to note the last comparable sale is that of the 206,296-dwt Grand Venture (built 2005), which was sold at mid-high $16m back in April of this year,” the shipbroker said.
The Baltic Dry Index surpassed the 4,000 mark for the first time since 2010, hitting 4,147 on Monday, according to Braemar ACM Shipbroking.
“The index has increased by 202% year-to-date, fuelled by soaring commodity demand, as well as Covid-19-related supply chain disruption,” the London broker said.
The capesize 5TC benchmark has also reached fresh highs since it was introduced in 2014, reaching $50,708 per day on Monday, an increase of 177% year-on-year.
Braemar said capesize vessels have been some of the worst affected by Covid-19 delays with the 180,000-dwt vessels calling at Chinese ports in the majority of their voyages.
Norwegian investment bank Fearnley Securities said on Monday that the dry bulk market continues to “fire on all cylinders across all segments” with capesize rates now finally starting to "show their earnings power".
“The rally comes on the back of some aggressive chartering from Vale who reportedly took more than 15 vessels on Friday alone,” Fearnleys analysts Peder Nicolai Jarlsby, Erik Gabriel Hovi and Ulrik Mannhart said.
