Asset prices of Capesize, Panamax vessels trend up

Asset prices of newly built and resale Capesize and Panamax vessels trended up rapidly in October, according to separate reports published this week by Norwegian financial services group DNB, and Intermodal Research & Valuations.


Newly built Capesize vessels were quoted at $53 million as on November 8, up from $52 million in October and up 15% from $46 million at the start of the year, according to the DNB Markets Shipping Daily Chartpack report Tuesday.

Resale Capesize vessel prices were at $52 million, up 30% since the start of the year, the report added.

Newly built Panamaxes were currently prices at $27.5 million, up from $27 million in October and up 8% from $25.5 million at the start of the year.

Panamax resale prices rose 13% through the year to $31 million, the report said.

DNB said the uptick in newly built Capesize and Panamax vessel prices was “indicative of confidence in a longer strong dry bulk market.”

In its Shipping Monthly Recap report for October released over the weekend, Intermodal said the market for newly built ships “has been getting ever more fired up, with more and more owners getting in on the new order game as they fear more and more that prices have only one way to go and that’s up.”

“Shipbuilders are getting even better at maintaining this sentiment, with many of them having limited their available slots and now offering at a considerable premium the possibility of squeezing extra availability for 2015,” the report added.

New orders were placed for 811 bulk carriers during January-October, representing 26.5% of the total new orders for 3,061 vessels which included bulk carriers, tankers, gas carriers, containers and other vessels, placed during the first 10 months of this year, data in the Intermodal report showed.

The dry bulk shipping industry has a total of 8,900 vessels in active fleet as on November 1, and 1,501 vessels on order, scheduled for delivery until 2016.

Japanese built vessels account for 47% of all dry bulkers in service, while 53% of the new vessels on order are being built in China.

A total of 713 new vessels, or nearly half of the units on order, are scheduled for delivery in 2014, the Intermodal report said.

Market sources said Wednesday that the recent spate of orders being placed for new ships was mostly owing to asset prices being at current lows.

Intermodal also noted that the bullish stance of buyers was partly due to the belief that “the previous lows seen 12 months ago are long behind us and if you don’t hurry even at these price levels you are going to miss out on some cheap buys.”
Source: Platts

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