Supramax, Ultramax new orders top all others
New orders for Supramax and Ultramax bulkers, the largest of the so-called "geared" ships that have onboard cranes, are higher than other dry bulker segments for delivery in 2023 and beyond, according to shipbroker data.
From 2023 onwards, shipyards are expected to deliver 347 new Supramax and Ultramax bulkers, compared with 254 in the Panamax segment and 116 in the Capesize segment, according to data from shipbroker SSY.
"Ultramax has been popular because geared bulkers have been doing well over the past couple of years and the fleet age profile supports newbuilding," said Thomas Bracewell, director of newbuilding for shipbroker Arrow.
The Ultramax orderbook represents 22pc of the active Ultramax fleet, while the Panamax orderbook represents only 9pc and Capesize orderbook 8pc of their respective fleets, according to BRS, another shipbroker.
From mid-2021 to mid-2022, Supramaxes, which typically track Ultramaxes, consistently beat out the larger segments in $/day earnings, according to SSY data, as pandemic-heightened consumer demand and Covid-19 related port closures increased global vessel congestion and encouraged "spillover" cargoes from containerships onto the geared bulkers, with their onboard cranes proving useful for the job.
Ultramaxes and Supramaxes carry similar types of cargoes and generally range from 40,000 deadweight tons (dwt) to 65,000dwt, with Ultramaxes being on the larger end of that spectrum, although some modern Ultramaxes are built with capacities up to 70,000dwt.
The prospect of owning an Ultramax or Supramax that can load and unload without onshore cranes, and with a lower cost of entry than major bulk carriers like Panamax and Capesize bulkers may be enticing for shipowners looking to expand their fleets.
"Ultramax provide the most flexibility in that they are now commonly 63,000dwt and geared, so they can pick off the Panamax market on the low end of cargoes when the Panamaxes get too expensive and also dip down into the traditional Supramax size cargoes, especially grains," said Pacific Rim shipbroker Kelle Horn.
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Canada rail strike to affect grains, industry says
Canada rail strike to affect grains, industry says
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Canadian rail workers vote to launch strike: Correction
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Japan's trading firms see metals prices cutting profits
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