Sentiment has been improving in the dry bulk market this month, with many players eagerly anticipating a recovery in various segments of the market. It is all but certain that newbuilding deliveries will decline by a moderate amount this year. About 60 to 65 million deadweight tons of new dry bulk vessels are likely to be delivered this year, which would be a far cry from the approximately 100 million deadweight tons of dry bulk vessels that were delivered last year.

As a result of the improvement in sentiment, dry bulk newbuilding orders have been on the rise this month. Approximately 30 dry bulk vessels have been ordered during the first three weeks of this month, which is more than were ordered during any month since August. In comparison, an average of 16 orders were placed during each of the last four months of 2012.

Turning our focus to recent dry bulk fleet growth, recently released data shows that 43 dry bulk vessels were delivered in December. This was well below the 65 dry bulk vessels that were delivered in November. December saw the delivery of 7 handysize vessels, 11 handymax vessels, 20 panamax vessels, and 5 capesize vessels. In comparison, November saw the delivery of 14 handysize vessels, 17 handymax vessels, 27 panamax vessels, and 7 capesize vessels

Dry bulk vessel demolition was firm in December. 31 dry bulk vessels were demolished in December, which was a moderate decline from the 44 dry bulk vessels that were demolished in November. December saw the demolition of 13 handysize vessels, 4 handymax vessels, and 14 panamax vessels (no capesize vessels were scrapped). In comparison, November saw the demolition of 15 handysize vessels, 10 handymax vessels, 13 panamax vessels, and 6 capesize vessels.

In total, the dry bulk fleet grew by a net addition of only 12 vessels in December. Overall, dry bulk fleet growth is poised to be much more manageable this year than it was last year. Prospects remain best for the capesize market and worse for the panamax market.

Source from CNSS