According to Greek shipbroker Allied Shipbroking, global secondhand ship transactions totaled 1082 vessels globally in 2011, while the volume for previous four years standing at 1808(2007), 1119(2008), 1164(2009) and 1259(2010) respectively.
The downturn is more obvious in dry bulk market due to slipping bulker evaluation. Totally 515 bulkers were recorded changing hand with a value of $6.6 billion, of which only 411 vessels larger than 10k dwt. In comparison, 2010 witnessed transactions of 626 secondhand ships of $10.7 billion and 2008 saw 586 vessels of $14.3 billion changing hand.
As Baltic Exchange evaluates, the price of modern bulker has shrunk by 30%. A five-year-old 172-dwt bulker was sold at $36.1 million by the end of 2011 while the same type was priced at $52.6 million at the beginning of the year. Coincidentally, the value of a 72k-dwt modern Panamax dived from $37.3 million to $26.3 million in the same period.
However, at the time being the price decline of above ship types has slowed down. Some insider say maybe it’s time for “bottom fishing” with the declining slowing down.