Modern capesize values have fallen almost 30% in the last 12 months to reach the lowest price since November 2003 at $42m.
The Baltic Exchange’s sale and purchase price assessment for a five-year-old 172,000 dwt capesize bulk carrier closed at $42.5m Monday, representing a 20% fall since the start of 2011 when the freight indices provider reported an average price of just over $52.6m.
Current prices also indicate a 30% decline in capesizes since late June 2010 when a modern capesize was worth an average $60.6m — a huge fall on the record $153.8m recorded in July 2008 when capesize bulkers earned over $200,000 per day in the charter market.
By comparison, the Baltic Exchange’s average capesize charter rate closed at $13,235 per day, although this is an improvement on the two-year low of under $5,000 recorded in February. The big difference over the last 12 months has been the increase in the size of the capesize fleet, with London-headquartered Clarksons reporting a total 1,229 vessels over 100,000 dwt on the water at the end of June, up 18% on the 1,038 recorded 12 months ago.
In addition, there are also another 570 of this size vessel due for delivery over the next four years, according to Clarksons, which willcontinue to weigh down rates and ship values.
Meanwhile, the average price of a five-year-old 72,000 dwt panamax bulker was down to $30.5m, representing a 17% decline on the $37.3m recorded at the start of the year.
For the panamax sector this price also represents a two-year low, and is the lowest value reported by the Baltic Exchange since early June 2009. Back then the panamax bulker fleet totalled 1,696 vessels, but has now grown to 1,884 ships, according to Clarksons.
The value of a five-year-old 52,000 dwt supramax bulker closed at $27.4m, down 11% since the start of the year when prices averaged $30.7m and a fall of 13% since June 2010 when values were $3
In contrast, tanker values reported by the Baltic Exchange have not fallen as much as dry bulk prices over the past six months. A five-year-old very large crude carrier of 305,000 dwt is now worth $81.8m, down just 3% since the start of the year and 11% since late June 2010 when prices averaged $92.5m.
Values for modern medium range product tankers of 45,000 dwt have even increased, as the pace of newbuilding vessel deliveries slows and owners’ earnings improve, with prices up at $29m, representing a 15% increase from the $25.3m values averaged in January, according to the Baltic Exchange.