The Capesize freight market proved resilient in the first half of the year, despite the fact that voyage costs increased significantly due to the rise in fuel prices.
Specifically, according to Allied, the Baltic Capesize 5TC averaged $/day in the first quarter, recording a 77% increase compared to the same period last year. On a half-year basis, earnings were almost double year-on-year, at $/day.
Strong iron ore demand from China, steady exports from Australia and Brazil, as well as the emergence of long-haul shipments from the Simandou project in Guinea, supported cargo flows and ton-mile demand. In this favorable context, shipowners increased their presence in the sector both through newbuilds and through purchases of secondhand vessels.
According to data presented by Allied in its report, since March, investment activity is evident both in the newbuilding market and in the secondhand market. Orders for new Capesize and VLOC vessels between March and early June amounted to 27, with this number rising to 31 if declared options are included. During the same period, recorded secondhand vessel purchases totaled 15 ships.
The distribution of activity showed significant differences between the two markets. Newbuilding contracts accelerated sharply in May, when 14 vessels were ordered, a number corresponding to more than half of all orders recorded during the period. Conversely, transactions in the secondhand market remained at lower levels in terms of volume and were more evenly distributed throughout the period, with six sales recorded in both March and May. As a result, the gap between activity in the newbuilding and secondhand sectors widened as the quarter progressed, with shipowners directing a larger share of reported investments towards fleet expansion through new orders rather than acquiring existing capacity.
Chinese shipyards dominated Capesize orders, securing 25 of the 27 orders, while Japan undertook the remaining two. A wider distribution was observed in the secondhand market: six Chinese-built vessels changed hands, six Japanese-built vessels, while two were built in the Philippines and one in South Korea.
Differences are also identified in the investor profile. According to Allied, Chinese buyers dominated secondhand vessel purchases, representing the majority of recorded acquisitions across the entire age spectrum of vessels. Conversely, in the newbuilding sector, the buyer base was broader, with Greek-owned companies having a noticeably more significant presence in securing future capacity compared to their presence in the secondhand market.
