Some shipbrokers put forward that it’s better to book new vessels at current low newbuilding prices than purchase secondhand ship. However, given the increasingly obvious capacity oversupply, secondhand is likely to be the better choice if buyers want to go bottom fishing.
Assessment of Capesize bulkers has seen sharp drop this year due to the over-ordering in the pervious boom. If the ordering activities go on, the prices and assessments are projected to fall further. On Posidonia last month, many owners have expressed concerns over continuing new orders, even growing order for eco ships.
According to Clarkson, China has been the leading player in Capesize bulker market. Since 2009, China has ordered 82 Capesize bulkers while Greek owners only ordered about 45. In secondhand market, Chinese owners purchased about 38 Capesizes over 10,000dwt in the period while Greek disposed about 27 vessels.
The main chain effect of overcapacity is the decrease of owners’ profits. Beside, growing financing pressure further limited owners’ purchasing power. Chinese shipping companies have mostly realized the urgency to limit new orders.
With secondhand declining further, some well-funded owners my go bottom fishing to better save the market.