| Bulker newbuilding orders plunge |
| Orders for dry bulk carriers plunged 66% year on year (y/y) in February as the Baltic Dry Index (BDI) plunged to a historic low, deterring investments. Statistics compiled by Greek broker Golden Destiny show 37 bulkers of 1,928,933 dwt were ordered this February, compared to 108 ships in the same month in 2014. Chinese yards grasped 84% in dwt share of the new orders for bulk carriers in February with a strong volume of activity in the Handymax and Ultramax segment (28 new orders won from the total of 37 new orders). Japanese yards won six new orders in the Handymax segment, while no bulkers were ordered at South Korean shipbuilders. Significant y/y decreases were recorded in the Ultramax segment with six new orders from 43 placed in February 2014, while no Capesizes were ordered last month, compared to 11 Capesize orders placed in February 2014. The dismal BDI also affected secondhand vessel sales, with 23 ships changing hands in February, compared to 44 ships in the same month last year. Golden Destiny research analyst Maria Bertzeletou commented, “The free fall of the Baltic Dry Index means serious instability of performance at profitable working levels and diminishes the pace of sales and purchase activity. “Willing buyers are waiting to see further plunge in asset prices as long as the decline of freight rates persists so they appear more aggressive in their appetite for secondhand vessels.” |