More than $1bn in capesize orders have been switched to other ship types as the moves, added to rising demolition volumes, kick-start a correction of the chronic tonnage oversupply in the trading market.
TradeWinds’ analysis shows that some 23 capesizes and newcastlemaxes, representing around 8% of the 300-strong big-bulker orderbook, have already been converted to tanker and boxship deals.
This is set to rise as owners seek to avoid adding capacity to a trading market paying until recently as little as $4,500 per day in spot rates.
