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A sign of a buoyant market is when secondhand prices edge closer - and occasionally surpass - newbuild prices. Witness the dark blue line jumping up close to the red newbuild line in the Clarkson chart below as evidence that shipping is very bullish about prospects in the Year of the Dragon, desperate to snaffle up prompt tonnage regardless of price. Starting with dry bulk, analysis from Greek broker Xclusiv shows that since early October 2023, secondhand prices have gained momentum with the capesize sector experiencing a particular surge, with both prices and sales activity at high levels compared to recent years. Notably, five-year-old, 10-year-old, and 15-year-old vessels saw their values jump by 18%, 27%, and 23%, respectively – the highest levels in the last five-year period. This optimism is translating into a vibrant sales market. Between October 2023 and February 2024, 55 capesizes have changed hands. The kamsarmax sector is also mirroring the capesize trend with rising prices and active sales. “This upward trend is likely influenced by the limited newbuild deliveries comparing to the past, the investor optimism for a long-term rebound in freight rates and the asset diversification, as many owners are looking to spread their portfolio across different vessel segments,” Xclusiv noted. Brokers Hartland described the dry bulk S&P market over the past week as a “pressure pot of activity”. “The few eco-type ships that have been on the market are going for more than last done; a combination of limited candidates and buyers buzzing with anticipation about the positive market outlook has led to very firm prices being achieved and new benchmarks set,” Hartland reported. Brokers at Gibson had fun with one recent sale, noting: “The 10-year-old scrubber-fitted capesize bulker as its name alludes to, is reported to have achieved a diamond price of region $41m and the owners will be sparkling that their reported sale in November 2023 at $37m failed to materialise.” Other notable sales included four Polaris newcastlemaxes built between 2020 and 2021 - , , and - sold to Greece’s Thenamaris for an average price of $65.5m, while Neda Maritime paid $127.5m in an en bloc deal for two 2019-built newcastlemaxes called and . Turning to tankers, Gibson has recent news of a new record paid for a 2007-built suezmax. “Not quite a fossil but it is quite astounding what some of these older ladies are achieving on price as we hear this week the has gone for a whopping $46.5m to Chinese buyers; that has to be the firmest price for a 17-year-old suezmax, ever,” Gibson noted in its most recent weekly report. The ship was owned by Greece’s Roswell Tankers and had been trading in Navig8’s pool prior to being sold. Roswell had picked up the tanker 15 months ago for just $34m. Secondhand suezmax prices have soared in the two years since the full-scale invasion of Ukraine by Russia. A five-year-old suezmax was valued at $47m in February 2022, while currently, it costs around $83m, according to Xclusiv. Ten and 15-year-old asset prices have more than doubled. Furthermore, during the last four-month period suezmax prices have gained momentum, with the five-year and 10-year old values being 12% and 14% up respectively. Among other notable tanker sales Ardmore offloaded its oldest MR2, the 2010-built , to India’s Great Eastern for $27.1m, according to VesselsValue. February was a quiet month for container S&P as sellers and buyers maintained a wait-and-see approach to determine a new floor for fair market values. Just eight sales have been transacted compared to 33 twelve months previous, according to VesselsValue. Ignazio Messina spent $20.5m taking the 2010-built, 4,398 teu , while MPC Container Ships bought two 2010-built, 4,256 teu ships called and from V Ships Hamburg for $17.6m each. The sale comes with a charter attached to CMA CGM for both ships at a little under $26,000 per day, running until the summer of 2025.

Buoyant bulkers lead the way

Secondhand prices are getting closer to newbuilds - a sign of a very firm market

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