Surge in Secondhand Bulker Market Amid Summer Sales
As July unfolds, the secondhand bulker market is experiencing a significant uptick in activity, with owners eager to finalize sales before the summer holidays. Despite ongoing challenges in dry cargo charter rates, particularly in the capesize segment, shipbrokers report a flurry of transactions, especially involving older vessels. This shift indicates a renewed focus on value acquisitions as buyers aim to capitalize on potential earnings growth.
Increased Transactions in the Capesize Segment
Recent weeks have seen a marked increase in transactions within the capesize segment, with first-tier owners actively pursuing deals. Notably, the market has shifted towards older tonnage, contrasting with previous trends where both eco and non-eco vessels attracted buyer interest. The sale of capesize ships built between 2011 and 2012 has become particularly prominent, with several high-profile deals either completed or in negotiation.
Among the standout transactions is the sale of the Mount K2, a 177,000 dwt capesize vessel constructed in 2011 by Mitsui. Singapore-based Eastern Pacific Shipping (EPS) sold the ship for $26.85 million, just ahead of its special survey scheduled for September. EPS, a notable player in the bulk carrier sector, had previously sold another capesize, the Mount Song, earlier in the year.
In comparison, the Golden Zhoushan, also built in 2011 at China’s Jinhai shipyard, has reportedly sold for $22 million. This price reflects a traditional market discount for Chinese-built vessels, particularly as the Golden Zhoushan is due for its special survey in January. The seller, SFL Corporation, has remained active in the sale of capesize units throughout the year.
Future Prospects and Market Dynamics
In addition to the aforementioned sales, rumours circulate regarding other vessels controlled by Chinese entities, such as the Pacific South and Pacific East. Both vessels are of similar age and size, and brokers suggest that they have either been sold or received firm offers. As the weekend approaches, more vessels are expected to emerge in the sales arena.
While the overall dry bulk freight market continues to face pressure, the renewed interest in secondhand capesize tonnage—particularly older units—signals a potential shift. Buyers are keen to secure value acquisitions that may yield benefits from any future market upturn. Meanwhile, sellers are motivated to conclude transactions before liquidity typically wanes during the European summer break. This dynamic could reshape the landscape of the secondhand bulker market in the weeks to come.
