A Swiss buyer recently purchased a 1997-built 73,317dwt Panamax bulker “Barbara” at a cost of $7.50m at an auction. It is estimated that the demand growth for secondhand bulkers may reignite the dry bulk freight rate market in 2014.
At another action, a similar Capesize bulker “King Coal ” was auctioned for sale at a value of $6.25m. The price of “Barbara” is about 20% high than “King Coal”.
According to London-based shipbroker Gibsons, almost 40 registered buyers show great interests in “Barbara” at the auction, demonstrating the potential for price growth. The increase for Panamax bulker value is the most obvious in all bulker types. According to Baltic Exchange, the average price of five-year Panamax bulker is about $1.97m, 9% up compared with the price at the beginning of this year.
Another bulker successfully transacted is “Botafogo” built in 2001 of a tonnage of 76,623dwt. MOL sold the vessel to an undisclosed owner at a price of $1.25m, another signal of bright market. Global owners, especially Greek owners, have sped up their steps of buying secondhand bulkers. However, according to London bulker shipbroker, secondhand assets value still hangs over historical low and will keep rising in the future. The dry bulk shipping market recovery may be expectable by next year.