Dry bulk tonnage is being sold at double the price since the beginning of the year as buyers anticipates strong upside in freight earnings for the next two quarters. According to one broker, buyers remain keen for secondhand bulk carriers as the spot market continues to strengthen, with brokers quoting higher prices from potential sellers, especially for resales.

The Baltic sales and purchase assessments show that secondhand prices for a five-year-old capesize vessels have surged by 38.1% year on year to $37.6m, panamax prices have risen 41.4% to $30m, Supras by 45% to $29m, and handysize prices are up 52% to $22.29m.

Shipowners and investors have been excited about the returns offered in the spot market in 2021, making the first eight months of activity exceed that of 2019-20 for all sizes but capesize, BIMCO chief shipping analyst Peter Sand said. “Capes have behaved like a puppy without a leash on, running fast, back and forth,” he said, “as compared the steady rising spot rates for the other cubs, merely pulling the leash, heading forward all the time.”

More than 550 dry bulk vessels changed hands in first half of 2021, Maritime Strategies International data shows, which is a big jump from the 600 vessels involved in sales and purchase transactions in both 2020 and 2019. MSI estimates the average age of vessels to change hands this year to be around 10 years old with supramaxes and ultramaxes being the most liquid segment.

MSI senior dry bulk analyst Will Fray, said the share of vessels built at Chinese Tier 2 yards has notably increased in the sales and purchase totals over the course of the year, which suggests buyers are having to delve deeper into the pool of available sales candidates to access tonnage. He expects secondhand prices to continue to climb for the remainder of the year, even though he expects earnings to cool as China’s import demand softens and port congestion eases slightly from very high levels.

“Continuing strength in newbuilding prices will help dampen the impact of decreasing earnings next year though older tonnage will not be as well insulated, especially as we expect to see scrap prices slide over the course of 2022.”

Meanwhile, the Olympic appetite to buy secondhand bulk carrier is also seeing several off-market deals, with buyers willing to pay over the odds simply to avoid a competitive bidding process, market observers told Lloyd’s List.