Capesize bulk carrier values experienced gains in February, fuelled by an improved charter market environment and a surge in sale and purchase (S&P) transactions
According to Veson Nautical’s latest monthly report, Capesize values across all age groups increased by 0.5% to 5.0% month-on-month, with the largest gains observed in 10-year-old vessels, which saw heightened interest in the secondhand market.
In contrast, most other vessel segments and age groups saw monthly corrections of up to 4.6%, with the exception of newbuilding and five-year-old Panamaxes.
Riviera has reported that despite the price corrections seen across the dry bulk sector in recent months, the Capesize segment has remained the most resilient, maintaining much of its strength. According to Allied Shipbroking, Capesize values have either stayed stable or increased slightly compared with 12 months ago. In contrast, other segments have seen declines ranging from 3.0% to 16.0%.
Notably, these value fluctuations come on the back of heightened deal activity. Veson Nautical data highlights that Capesize vessels were the most active in the S&P market last month, with approximately 15 ships changing hands. Of these, 14 were built between 2006 and 2015, and one vessel over 20 years old was also sold.
In the past two weeks, shipbrokers have tracked S&P deals for five Capesize and Newcastlemax vessels, with an average age of 13.8 years.
Rebound in charter rates
The increase in Capesize values follows a significant rebound in the charter market. According to Baltic Exchange data, average daily spot rates for Capes rose by 108.0% from 31 January to 28 February.
As the market entered March, the upward trend continued. The Baltic Exchange reported that during the first week of March, average daily spot rates increased by US$3,660, closing on 7 March at US$20,084.
Allied Shipbroking, in its latest weekly report, noted stronger miner activity in the Pacific, driving rates sharply higher. The Atlantic market also saw an increase, with tighter ballast supply and stronger cargo volumes from South Brazil and West Africa to China. Analysts highlighted sentiment remains bullish, buoyed by rising cargo availability and a firming outlook heading further into March.
