Values have done a lot better than rates
Capesizes and panamaxes, unsurprisingly, have seen the largest fall in second values over the past year latest figures show.
Prices for a five-year-old capesize have fallen 27% in the past twelve months to $44.6m, according to the latest Baltic Sale & Purchase Assessment.
However, values have done a lot better than rates. A year ago capesizes were earning around $48,800 per day. On Monday, it was about $5,800.
The weak freight rate environment has prompted an increasing number of capesizes to head to the breakers yard.
The number of large bulkers sold for demolition so far this year has reached 31. Five were reported sold for scrap last week alone.
Scrapyards are said to remain hungry for tonnage and recent sales have earned their owners more than $500 per ldt.
Secondhand prices for similar aged panamax bulkers have done little better and are down almost 19% year-on-year to $31.7m, the Baltic says.
Five-year-old supramaxes have seen the smallest decline in values over the past year, down about 10% to $27.7m.
In the tanker space values are also down, but not to such a degree, with VLCC values down only 5.8% to 82.2m, according to the Baltic.
A 2006-built aframax will now set you back around $39.3m versus the $42.7m seen a year ago, a decline of just under 8%.
The one bright spot has been the MR product tanker segment where values have actually risen by about 7% to $28.6m, Baltic figures show.
Source: Tradewinds