Market in Focus: Bulkers

Maritime Activity Reports, Inc.

June 24, 2019

  • © Ivan/AdobeStock
  • Source: Vessels Value
  • © Ivan/AdobeStock © Ivan/AdobeStock
  • Source: Vessels Value Source: Vessels Value

Many Chinese companies have been stepping up in the bulker market with COSCO Shipping and Avic leasing placing orders at Chinese yards. Of the total 313 Bulkers ordered over the past year, nearly 40% have been Panamax vessels, demonstrating the hot market.

Source: Vessels Value
Second hand market

The Bulker market as a whole has shown a softening in values over the past year. The main reason for this is due to the drop off in rates throughout the first quarter of 2019.  
In particular, the Capesize market suffered a substantial amount over the spring months with rates reaching three-year lows. This was represented in the sale and purchase market with a break of 110 days when no deals were confirmed. A break of this length has never been seen in the market before. Having said this, we have recently seen an unusual sale of an ore carrier, the Pacific Glory, for $14.6 million offloaded by MOL.

To contrast the limited activity in the S&P market, 20 Capesize vessels have been confirmed for demolition since January 2019, mostly with delivery to Bangladesh. This compares to a total of 17 vessels that were sold for demolition throughout the whole of 2018 making them the most popular bulker to be scrapped.

Source: Vessels Value

Maritime Reporter Magazine Cover Jul 2019 - Cruise Vessel Design & Outfit

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News