Now that the bulk freight market has stopped for breath, the reaction in the S&P market will be worth following. After such a long run of escalating freight rates perhaps secondhand prices will also begin to reflect some hesitation. As it is, the euphoric drive into used tonnage has arguably led to some curiosities, which may now also be checked. Of interest is how the prices for bulkers in some sectors have converged with the freight market's bull run. A good current example is the sale of Kumiai Navigation's Panamax Co-op Harvest (1988-built, Namura, 68,377 DWT) - albeit with SS & DD due - at a reported $8.5M and the fact that the market level for Handymaxes of a similar vintage is very close to that. The market is currently looking at Japanese 1989-built Handymaxes of around 42,000 DWT and the prices being quoted are "at least" $9M. This cannot be explained by rates, so even if Co-op Harvest was in poor condition, this could suggest that the Handymax sector is overheated, not that Panamaxes are good value for money.
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