A glance at secondhand sales done this year shows clearly many view dry bulk as bottoming out price-wise, and investors not as confident in the brittle tanker markets as the listed giants of the sector would have you believe.
Analysis by brokers Intermodal shows that there have been 234 bulker S&P deals done this year, more than twice the 113 tanker sales completed.
“This shows a correlation between market confidence and opportunity recognition. To be more specific there is a lack of confidence on the wet side and a clear acknowledgment of investment opportunities on the dry side despite of the dismal earnings,” Intermodal said in a weekly report.
Almost every bulk carrier that enters the market gets sold as long as it is built post 1997, Intermodal stated.
“[B]uyers seem willing to bet big when they believe that the absolute market bottom has been reached and that psychology is at its worse,” the broking house commented on the volume of dry bulk sales.