Capesize carriers market review 1Q24

Capesize Bulkers may be the top bulk carrier segment in the coming years. They have the lowest order book and an aging fleet, but the demand for major bulks is poised to grow.

China and India are the prime drivers behind the demand for iron ore, coal, and bauxite. Supply comes from a few locations. Australia for coal, bauxite, and iron ore, Brazil for iron ore and bauxite, Colombia for coal, and Guinea for bauxite.

Stricter environmental regulations push shipping companies to reduce speed, which means longer voyages. Port congestion, too, started to rise again, resulting in a constrained Capesize supply in the long term.

YTD Capesize plays outperformed Baltic Dry and S&P500 by a significant margin.