BUSINESS

Jump of 20 pct in prices of dry-bulkers

NIKOS ROUSSANOGLOU

TAGS: Shipping

The prices of the most popular dry-bulk carriers, those in the Capesize and Panamax categories, have posted an increase of 20 percent within just one month, which according to shipbrokers Intermodal is an impressive hike. This concerns modern ships that traditionally concentrate the bulk of demand – particularly among Greek shipowners.

This price hike is due to the significant recovery of rates in the dry-bulk market (wheat, iron ore, coal and other raw materials) in the first quarter of 2017 compared to a year earlier. The Baltic Dry Index soared to 1,297 points in March, a 28-month high, although it has since slid due to delays in cargoes from Australia.

There is clear optimism among market analysts regarding the recovery course the market has embarked on, so shipowners are rushing to reposition themselves in the market through accelerating dry-bulk carrier purchases.

That is a policy that many Greek shippers have followed since the start of 2016, when the recovery was more of an expectation than a certainty. Greek shipowners spent some $142.4 million in March 2017 on the acquisition of 12 dry-bulkers, according to the latest data by Golden Destiny.
 

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