Geared bulker values surge on robust demand for modern vessels

- Firm earnings and shipyards focussed on tankers have pushed five-year-old Ultramax values above newbuildings and equivalent-age Kamsarmaxes

The latest HORIZON Monthly Dry Bulk Report from MSI notes that since the middle of 2025, bulker asset values have been steadily on the rise, with particularly notable gains seen within the Handymax segment (45-70k Dwt). Over the first four months of 2026, new, five-year-old and 10-year-old Ultramax prices increased by approximately 10%, 13%, and 20% respectively.

Five-year-old Ultramax values are now close to a 4% premium to newbuilds. While it is relatively common to see the value of assets under one year-old above newbuild prices during strong freight markets, it is far less common for five-year-old vessels to command a premium over newbuilds. The last time this occurred within the Handymax segment was in 2010.

Furthermore, five-year-old Ultramax values have now moved above equivalent-aged Kamsarmaxes. MSI data shows a five-year-old Kamsarmax priced at around $37 Mn, while a five-year-old Ultramax is valued slightly higher at just over $37.1 Mn.

This reversal in the typical pricing relationship was last seen during the strong bulker market of mid-2021, highlighting renewed strength in the Ultramax segment.

“Underpinning this surge in prices has been very firm Ultramax earnings in recent months, with spot earnings rising by around 13% between January and April 2026. This supportive earnings environment has continued to increase interest in the segment,” said James Benali, Analyst, MSI. “Brokers continue to report limited availability for Ultramax delivery slots at yards until at least 2029, as shipbuilders prioritise higher value orders such as tankers.”

As a result, owners seeking prompt tonnage to deploy into the current firm freight environment have increasingly turned to the second-hand market, driving values sharply higher, with buyers willing to pay premiums for prompt tonnage.

Reflecting this stronger appetite, MSI tracked 38 Ultramax sales between January and April 2026, significantly up from just 22 sales recorded during the same period last year.

In early May, DryDel reportedly sold the Japanese built 2021 63.6k Dwt Dominator to undisclosed buyers for around $38 Mn. By comparison, a year earlier, two Japanese built 5 Yr Old Ultramaxes were sold for approximately $30.6 Mn and $34 Mn respectively, highlighting the sharp increase in second-hand asset values seen across the segment.

■ Contact: Maritime Strategies International (MSI) www.msiltd.com