A serious lack of capacity really began to tell this week as it became virtually impossible to find any open end-buyers who were willing to take vessels or even to openly discuss numbers.

After a binge on units at high prices over the previous few weeks, certain deals began to encounter difficulties with manv cash buyers having clearly over extended themselves. One such deal saw the Korean owned capesize vessel DOXG-A RHEA fail to one buyer at USD 428/LT LDT, only to then see levels in the low 400s/LT LDT and no guarantee for a Bangladesh delivery.

It may take a month or so to clear out the tonnages already beached at local yards and a return of the aggressive approach to buying, that Bangladeshis are famed for.

Two deals that were however concluded saw the mini capesize bulker MOSEL N (16,477 LDT) sold for USD 410/LT LDT and the LACONIA (10,500 LDT) fetching USD 428/LT LDT (largely down to the 300 T bunkers upon arrival and good cargoes carried by vessel). It remains to be seen whether those prices will hold up in the coming week with deals likely to face severe scrutiny unless immediately unsold to an end buyer.

Source - GMS Weekly

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