Greek buyers most active in Capesize sector as values increase by nearly 50% in one year

By Rebecca Galanopoulos Jones, senior content analyst, Veson Nautical

Values for Bulkers have been going from strength to strength this year, up across all ages and size categories. Notably the Capesize and Supramax sectors have seen some dramatic increases, for example in the Capesize sector, values for 20-year-old vessels of 180,000 DWT have shot up by c.39.6 % from US$13.86 million to US$19.35 million, the highest levels since 2010. On the other end of the scale, newly delivered 0-year-old Supramaxes of 60,000 DWT have firmed by c.12.6% since the start of the year from US$33.44 million to US$37.64 million.

Figure 1: Increases in Bulker values since 2010.

Year on year Capesize values have seen some impressive gains and 0-year-old vessels of 180,000 DWT have increased by c.43.3% from US$53.25 million to US$76.22 million. To date, the volume of Capesize sales has more than doubled from the same period last year, with 42 sales reported since 1 January 2024 compared to 20 for the same period last year.

The Bulker sale and purchase market has been very active showing a c.35% year-on-year increase. In February 2024 there were 33 Capesize sales concluded compared to just nine in February 2023, an increase of c.267% year-on-year. For the Supramax sector, this figure increased by c.20%. Greek buyers were the most active in the Capesize sector, accounting for c.33% of purchases and in the Supramax market, the Greeks also ranked first alongside Chinese buyers with a share of c.28%.

Dry Bulk earnings

The recent surge in values can be attributed to robust earnings, especially notable during this time of year. Traditionally, Q1 is considered a quiet period for Bulkers due to seasonality and the Lunar New Year celebrations in the Far East, which typically led to a temporary pause in market movement.

However, this year is an exception with current Capesize earnings reaching the highest seasonal levels since 2010. At the time of writing, spot rates for Bulkers are around 35,750 US$/day, which is more than double the levels seen at this time last year when rates were around 15,000 US$/day.

The spike can be credited to Chinese trade surpassing expectations, indicating a positive shift in global trade patterns in the first few months of the year.

Additional ton mile demand has also provided support to Bulkers earnings as security concerns in the Red Sea have led to disruptions in the Suez Canal, prompting many owners to contemplate longer journeys around the capes as a means of avoiding these troubled areas.

Notable sales

Notable recent sales that have continued to push the values higher include the Capesize (Newcastlemax) Shin Koryu (208,000 DWT, Oct 2009, Universal) to Winning Shipping for US$32.75 million, VV Value US$30.46 million. Also, the Supramax BC Bulk Monaco (63,700 DWT, Jun 2023, Shin Kasado Dock) sold to CTM Deher for US$40.5 million, VV Value US$39.69 million and the Supramax BC Andromeda (61,500 DWT, Jan 2011, Oshima) sold to unknown Turkish buyers for US$21.0 million (DD Passed), VV Value US$19.80 million.