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The dry bulk market has witnessed significant activity in the first nine months of 2024

The dry bulk market has witnessed significant activity in the first nine months of 2024, with a surge in both the number of vessels sold and their total value compared to the same period in 2023, while the tanker market has come into a halt, slowing pace. In the dry bulk market, 612 bulkers were sold in 2024, a 34.5% increase from the 455 sold in 2023. The total value of these transactions also rose by 50%, reaching $12 billion in 2024 from $8 billion in 2023. Chinese buyers were particularly active, acquiring 115 bulkers in 2024, a significant increase from the 66 purchased in 2023. Greek and Japanese buyers also showed strong interest, with each purchasing 107 bulkers in 2024 compared to 77 and 68, respectively, in 2023. On the seller side, Chinese owners sold 158 bulkers in 2024, while Greek owners sold 146.

In the tanker market, the first nine months of 2024 saw 332 tankers change hands, valued at approximately $10 billion. This represents a 27.2% decrease from the 456 tankers sold in 2023, valued at $13.2 billion. Greek buyers and sellers were active in the tanker market, with Greeks purchasing 40 tankers and selling 52 in 2024. In 2023, the corresponding numbers were 41 and 100. Chinese owners sold 32 tankers in 2024 compared to 44 in 2023, while buying 49 in 2024 compared to 51 in 2023. The United States sold 21 tankers in 2024, down from 28 in 2023, while the United Arab Emirates bought 17 tankers in 2024, a significant decrease from the 46 purchased in 2023.

The spectre of a global oil crisis is once again haunting the energy markets, driven by a confluence of escalating geopolitical tensions and market volatility. The recent surge in oil prices, with WTI crude futures rising above $74 per barrel trading at a four-week high, fuelled by concerns over a widening conflict in the Middle East, underscores the fragility of global energy supply chains and the potential for disruptions to have far-reaching economic consequences. At the heart of the crisis lie the escalating tensions between Israel and Iran, with the potential for the conflict to spill over into a wider regional war. The threat of Israel targeting Iranian oil infrastructure and Iran's potential retaliation has sent shivers through the markets, raising fears of disruptions to global crude flows. The Strait of Hormuz, a vital oil chokepoint, is particularly vulnerable to such disruptions, with any closure likely leading to a significant spike in oil prices. While the recent lifting of force majeure on Libyan oilfields and terminals offers some respite, the ongoing instability in the region and the potential for further disruptions maintain significant concerns. The geopolitical risks are compounded by the rising demand for oil, particularly in emerging economies, and the limited spare capacity within the OPEC and its allies. The impact of the crisis is not confined to the energy sector alone. The surge in oil prices is likely to have a cascading effect on other commodities, transportation costs, and inflation, ultimately affecting consumers and businesses worldwide. The tanker market has already seen a significant increase in rates as the continuation and the escalation of war conflicts in the Middle East continues to disrupt seaborne trade. VLCC, Suezmax and Aframax Baltic Exchange TCEs are at their highest point since 4 of June, 17 of July and 27 of June respectively, having 11%, 53% and 97% increase within the previous week. As the situation in the Middle East continues to evolve, it is imperative for policymakers and market participants to closely monitor the developments and prepare for potential disruptions.

Sale and Purchase

Dry:

On the Mini Capesize sector, the “Azalea Island” - 106K/2007 build in Oshima was sold for USD 15.5 mills. Moving down the sizes, the Panamax “Pan Viva” - 75K/2010 Penglai Zhongbai found new owners for USD 15 mills, while the 5-year-older “Glory” - 77K/2005 Tsuneishi changed hands for USD 11.1 mills. On the Ultramax sector, the “Nord Adriatic” - 61K/2016 Iwagi was sold for USD 29 mills. Korean buyers acquired the Supramax “NPS Mosa” - 54K/2007 Iwagi for high USD 12 mills. Finally, on the Handysize Sector, the “Blue Dragon” - 38K/2011 Imabari was sold for low USD 15 mills, while the 15-year-old OHBS “Kefalonia” - 29K/2009 Imabari changed hands for USD 10.5 mills.

Wet:

The LR2 “PS Genova” - 109K/2010 Hudong Zhonghua was sold for excess USD 40 mills to Dubai based buyers. 2x MR2 Zinc Coated, the “Maritime Inspiration”- 50K/2021 GSI and the “Maritime Verity” - 50K/2021 GSI were sold for USD 48 mills each to Bahri. Finally, on the same sector, the “Hafnia Andromeda”-50K/2011 GSI changed hands for USD 31 mills.

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