Maritime sector intelligence firm Maritime Strategies International (MSI) has published its Q3 report into the vital signs of the dry bulk sector, declaring the shipbuilding and second-hand vessel activity as “holding up strongly”.
In the report, MSI said it expected 34m DWT of dry bulk capacity to be delivered to ship owners and operators by the end of 2024.
Although the new build business saw a “brief summer lull” the second-hand market remained active, and prices “firm”.
In the second-hand market, demand for dry bulk ships remains robust, with sales of Capesize vessels especially robust.
“MSI’s assessment of five-year-old Capesize prices staying above $60m, a level not seen in almost 15 years. Prices for older ships are close to their 2022 peaks, with even 18-year-old Capesizes selling for over $20m,” the report explained.
The new build market has generally followed the trends set by second-hand buyers, and Capesize orders have similarly remained steady in 2024.
“A recent softening in year-over-year comparisons for both newbuild prices and vessel earnings could indicate early signs that the second-hand market may follow suit,” says Plamen Natzkoff, associate director, dry bulk commodities and freight, MSI.
“This suggests that prices may continue to rise year-over-year in the near term, albeit at a slower pace, but could start to decline within six months, implying a peak in asset prices around the end of 2024 and the beginning of 2025.”
“Dry bulk vessel market “holding up” according to analysts” was originally created and published by Ship Technology, a GlobalData owned brand.
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