Secondhand Bulk Carrier Prices continue to rise

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

31 May 2010

Secondhand values have maintained the upward trend that started at the end of 2008. At that time a five year old 74,000 dwt standard Panamax could be obtained – or rather was valued at – some $27m providing of course that bank approvals could be obtained which itself was a major problem. Today the same specification of ship is valued at $40m proving yet again that if the money is available from a cash buyer that beneficial returns can be made on this market if the opportunity arises. Sometimes the problem is that banks will not lend even though an owner can see an obvious “bargain”. The story of missed opportunities has a long history in the bulk carrier market and of course hindsight is a wonderful thing. Even so the main factor remains the perception about the future trading opportunities and looking at the orderbook could perhaps suggest that at sometime ahead the market will turn down – the fear of this could drive some speculative owners to put these “bargains” back on to the market sooner rather than later.

Source: ICAP Shipping