BULK carrier values remain robust during a period of strong, if volatile, freight markets while long shipyard lead times are helping to limit the pace of newbuilding orders across the dry cargo sector.

Capesize bulkers have shown particularly strong value appreciation this year. Since January, capesize asset prices have climbed by as much as 10%, depending on age, with the rise reflecting a combination of resilient demand for long-haul commodities, constrained fleet renewal, and tighter availability of prompt tonnage.

While freight rates have swung sharply in recent months, the overall firmness of earnings has supported secondhand values. Meanwhile, the extended delivery schedules at major shipyards continues to deter owners from rushing into newbuilding contracts.

Market sentiment received another boost this week as the Baltic Dry Index climbed to 2,480 points on November 27, its highest level since December 2023.

“Bulker values have been broadly steady through the fourth quarter with only minor week-to-week moves; the main drivers behind today’s pricing is the freight market’s strength,” said Xclusiv Shipbrokers analyst Dimitris Roumeliotis.

Capesize earnings have been bolstered by robust iron ore demand, especially on the longest haul Brazil-China route.

Supramax and ultramax vessels continue to see strong demand tied to grains, minor bulks and active intra-Pacific trade flows, helping keep earnings, and vessel values, well supported across the segment.

Meanwhile, values of kamsarmax bulk carriers — gearless vessels of around 82,000 dwt — and supramaxes and ultramaxes (geared ships of between 58,000 dwt and 63,000 dwt) have converged as earnings for both vessel classes have become more equalised. 

“Convergence in mid-sized sector freight markets has seen similar spot and period earnings for the supramax/ultramax segment and kamsarmaxes,” said Roumeliotis. 

“As a result, asset values have narrowed, with the traditional premium for one over the other now less pronounced.”

Meanwhile, the relatively high price of newbuildings and long delivery lead times is helping to maintain values of the most modern vessels.

Ordering a newbuilding today with delivery in 2029 seems a step too far for most shipowners and has become a deterrent in ordering new ships. High shipbuilding prices are also helping to keep a floor on values of secondhand bulkers of up to 10 years old, according to Roumeliotis.

Recent sales in the capesize segment included the Cido Shipping-owned 2012-built Fortune Violet (IMO: 9614921). This 181,000 dwt vessel, built by Japanese shipyard Imabari, is said to have been sold to undisclosed owners for $34m, with handover to the buyer in the second quarter of 2026.

Meanwhile, Japan’s NYK has sold the 2012-built, 107,000 dwt, mini-capesize NBA Rembrandt (IMO: 9644500) to undisclosed buyers for circa $19m.

In the kamsarmax segment, a Chinese owner sold the 81,000 dwt, 2013-built, Xin Tang Shan Hai 1 (IMO: 9655822) via auction for $15.3m, while recent panamax sales included the 2001-built, 77,500 dwt, GNS Harmony (IMO: 9233519), which was sold for $6.75m.

Ultramax sales reported by brokers in the past week included the 2021-built Great Voyage (IMO: 9909106). The 61,000 dwt vessel was sold by China’s CMB Financial Leasing at auction for $30.5m.

In the handysize segment, Italy’s Fratelli Cosulich is said to have sold the 2015-built Saturnia (IMO: 9725380), with the 39,000 dwt ship being purchased by Greek shipowner Pioneer Marine for $18.5m.