Prices for dry bulk carriers could soon rally, following hot on the heels of the latest rally of the dry bulk market freight rates. Despite last week’s correction, shipbrokers appear to be quite optimistic regarding a renewed rebound in asset prices as well.

 

In its latest weekly report, shipbroker Allied Shipbroking said that “the final quarter of the year started “with a bang” for the bigger size segment, with the benchmark TCA figure reaching new highs, while reaching close to its 2009 peak. A hefty trajectory for a segment that has been the year-to-date underperformer in the dry bulk market. Can this trigger another round of increase in asset prices as well? Using asset prices for 5-year old vessels as a benchmark, current price levels seem to be on the low side. This point is further enhanced, given the roughly US$ 10mill price gap with the 2009 levels. The question is as to whether 2021 is at a discount or was 2009 an exaggeration? It is possible that the answer lies somewhere in-between”.

According to Allied’s Research Analyst, Mr. Thomas Chasapis, “technical analysis will point towards a bullish direction for asset prices, attuned with the overall sentiment. However, we shouldn’t neglect market “bias” which tends to usually accumulate from most recent memory of market performance.

 

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Dry Bulk Ships’ Values Set to Rally