The fever in ordering activity and secondhand S&P transactions has gradually driven newbuilding and secondhand prices down since the second half of last year.
In Golden Destiny’s report, the shipbroker reveals that investors’ recent interests have turned to small vessels such as Handysize and Handymax bulker, which is likely to raise the price up.
According to Baltic Exchange’s database, the price for a five-year 172,000dwt Capesize bulkers is about $33.4m last week while the price for the same type is about $42.9m and $153m in June 2011 and 2008. A current $23.0m five-year Panamax bulkers is valued at about $30.8m and $88.0m at the same time of 2011 and 2008. Comparatively, the decline of Handymax bulker price is relatively milder, the prices for Handymax in June 2012, 2011 and 2008 is about $22.0m, $27.5m and $75.0m respectively.
In this February, U-Ming Marine Transport ordered four Capesize bulk carriers at Shanghai Waigaoqiao shipyard at a cost of $49.8m for each. However, in May 2008, the cost to build a same vessel at Jinhaiwan Shipyard is $88.5m.
Global investment in secondhand market has declined by 9% in the first half of this year on year-on-year basis, of which investment in bulker fell by 6% while the amount in containership increased by 55%.
In newbuilding market, new orders for tanker are more active than that for bulker and containerships. MR product tanker and offshore plant are still owner’s favorite, especially LNG carriers.