Record Levels of Sales Seen by Newcastlemax Vessels

A bulk carrier at sea
Updated Published

Large bulk carriers are earning significant profits, with the frequency of transactions involving these ships reaching high levels.

According to Splash, the month of February set a new record for the sale of newcastlemax ships, with a total of 10 large capesize vessels being sold as reported by VesselsValue.

Newcastlemax ships, defined by their maximum width of 50 meters and a length of up to 300 meters, are named after their capacity to dock at Newcastle port in Australia, representing the largest size of vessels that the port can accommodate.

Recently, OMC Shipping completed the sale of the 10-year-old, 208,000 deadweight tonnage (DWT) Pacific Assurance, constructed by Imabari, to Pan Ocean of South Korea for a robust $48.5 million.

In a notable transaction mid-February, two Greek companies ventured into the newcastlemax category. Thenamaris acquired four vessels for approximately $65 million from Polaris Shipping, and Neda Maritime purchased two newcastlemaxes built in 2019 – the Bulk Shanghai and Bulk Seoul – for $127.5 million from the 2020 Bulkers company, which is supported by Tor Olav Trøim.

Additionally, Winning Shipping from China is reported to have purchased two vessels from the US-based Foremost Maritime.

Last month saw a dramatic 90% increase in spot rates for capesize ships, rising above $31,000 daily. A recent analysis from Arrow brokerage anticipates that these rates will continue to climb in the upcoming months.

Arrow highlighted an intriguing observation: "In the second half of the previous year, the average demand for Capesize ton-miles was 28% higher than in February. Moreover, since 2013, the demand during the latter half of the year has consistently surpassed February's figures."