Capesize carriers market review 2Q24

A few shipping segments have the best fundamentals: low order book, aging fleet, and a lack of shipyard capacity. Dry bulk carriers are one of them.

Nevertheless, not all bulkers are equal. Capesize vessels are best positioned among them. They have a low single-digit order book and a progressively aging global fleet, and the next available slots for new buildings are after 2026.

In the meantime, the tonne-mile demand is poised to grow. The drivers are iron ore projects coming into production in the next 24 months and global demand for major bulks (iron ore, coal, and bauxite).

This is a 2Q24 review of the dry bulk carriers market. Today, I discuss the 2Q24 major bulk market, Capesize supply, and the Chinese economy.

Capesize market preview

The main variables that make me believe in Capesize's potential are intact. Let’s start with the big picture.

Global dry bulk trade during 2024 and 2025 is projected to grow by 2.6% and 0.7% in tons and by 4.4% and 0.5% in tonne miles, respectively. IMF …