Market Chat: Capesize Sales Climb 24% YoY, Matching 2021 Highs

Greek buyers have been the most active in this sector, accounting for c.29% of sales reported this year

Although overall Bulker sales have been more moderate so far this year, the volume of Capesize sales has been moving in the opposite direction to the rest of the sector with sales up there next to the historic highs of 2021. There have been 97 Capesize sales reported this year to date, which equals the sales for the same period in 2021, sales have increased by c. 24% year on year with 78 Capesize S&P transactions reported during the same period last year.    

Notable sales include Capesize BC Santa Lucia (176,800 DWT, Aug 2006, Namura) sold to unknown Turkish buyers for USD 16.35 mil, VV Value USD 15.73 mil. Capesize BC Yuan Fu Star (175,200 DWT, Dec 2011, Jiangsu Rongsheng) sold to Beks Shipmanagement Turkey for USD 23 mil, VV Value USD 22.73 mil.

The average age of the vessels sold so far this year is 12, values for this age range have increased by c. 5.55% since the start of the year. Values for modern Capes have firmed overall since Jan, led by 0YO vessels of 180,000 DWT that have increased by c.14.68% from USD 51.16 mil to USD 58.67 mil. Greek buyers have been the most active in this sector, accounting for c.29% of sales reported this year, China ranks second with c.16.6% and in third place is the UAE with c. 8.3%.  

Earnings remain moderate for this sector due to ongoing demand concerns surrounding the construction in industry in China. One year timecharter rates for Capesizes are currently at 14,360 USD/Day which although 8.6% higher than for the same period last year, is far off the highs seen in 2022 when Capesize sales were at similar levels.

However, data from Oceanbolt, a Veson Nautical Solution indicates that iron ore volumes on the Australia to China route have remained relatively consistent and are therefore providing a level of support for the larger vessels. Australia continues to be the main source for Chinese iron ore and imports for August 2023 were around 65.9 MT, compared to 65.7 MT for the same period in 2022, an increase of 0.5% year on year.

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