There has been a Capesize S&P “frenzy” so far in 2024, as one shipping paper put it as it reported the sale of the 181,400 Dwt, 2014 built True Cartier to German bulker royalty Oldendorff for a chunky USD 41 million. If true, the price exceeds the USD 40.5 Mn that JP Morgan paid to acquire the ship in 2019. During February, NYSE listed Genco has sold two older Capesizes for a combined figure of around USD 48 million. Greek owner Thenamaris has bought four Newcastlemax bulkers from Polaris Shipping of South Korea paying more than USD 67 million each for the 2020 built pair Solar Pride and Solar Quantum and the 2021 built pair SolarNova and Solar Oak. Apparently there were more than 10 bids for these modern units.
The bullish sentiment in the Capesize sale and purchase market can be interpreted as confidence in the freight market outlook for the next few years. And as readers of our dry bulk forecast reports will know, we agree with that forecast. The freight market cycle has reset and is likely to start climbing this year to a peak next year or even in 2025.
Well, maybe the new owners of these ships will get to enjoy a rising market. But an investment in a second hand vessel is usually a five to ten year engagement, so the new owners have to take a view about how the markets will develop out to 2030.
But there is one issue which concerns me when looking at an investment in Capesize bulkers. And it is a biggie…
Read more here.
Kong Hei Fat Choi!
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