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EARbook • DRY Bulk MARKET REPORT The Year of Little Change Despite the generally strong economic recovery by 0.7 percent. Deliveries of bulk carriers totaled in Asia, there was little change in freight rates in the Dry Bulk market segment. The year 1999 turned out to be much the same of 1998 where average freight rates are concerned, as the yearly average tripcharter rates for modern Capesizes fell to $8,500/day, which as approximately $1,100 lower than in 1998. Rates for modern Pana- maxes increased to $7,500/day, up about $800 from the previous year. For modern Handymaxes, the average tripcharter rates remained basically unchanged at $6,800/day. The freight rates did, how- ever, start the year at levels substantially lower than they ended. The main reason for the extremely weak start to the year was a considerable stock depletion in the steel industry during the first half. Dur- ing the second half, however, R.S. Platou noted increasing activity in mineral trades and brisk grain activity. Ship values entered the year at low lev- els, but began to appreciate during the first quarter. The firmer trend continued through most of the year. At the end of the year, prices for 10-year-old ships were, in general, 30 percent above their levels at the beginning of the year. In addition, due in part to firming freight markets, there was a slightly higher new- building price for bulk carriers. But looking at 10 year trends (see Figure 1), it is plain to see that the long-term valu- ation of 10-year-old tonnage, particular- ly in the Capesize segment, is approach- ing the bottom. The dry bulk fleet (see Figure 2), increased only by 0.3 percent from 1998 to 1999. A slight reduction in combined carriers engaged in dry trades resulted in a 0.2 percent increase in the operating dry bulk fleet. The active Handysize fleet increased a modest 0.4 percent, while the operating Panamax fleet expanded by about 1.8 percent. The Capesize fleet was reduced 13.5 million-dwt, while deletions of bulk vessels amounted to 9.4 million, and 0.9 million-dwt of combined carriers were scrapped. Thus, the fleet PE DUTCH IN THRU Avg. Freight Rates ($1,000/Day) Tripcharter Handymax Panamax HRP is the worldwide supplier of 360° steerable thruster systems and tunnel thrusters up to 2000 kW. The Azimuth Thruster Systems are available in well mounted, retractable and deck mounted versions and suitable for each drive mode. All HRP Thruster Systems have one thing in common: they are strong, reliable and meet all classification society standards. The systems are built according to the proven excellent Dutch craftmanship of HRP. UHMW Marine Fender Pads for all applications! Capesize ,P THRUSTER SYSTEMS Source: R.S. Platou a.s„ The Platou Report 2000 HRP Thruster Systems BV • P.O. Box 2020 • 2930 AA Krimpen a/d Lek. Tel.: +31 (0)180 519 988 • Fax: +31 (0)180 519 256 • E-mail: info@hrp.nl • www.hrp.nl Circle 367 on Reader Service Card •UHMW Marine Fender Faces will im- prove your fendering system regardless of the manufacturer. •Any Color UHMW-we can color match, too! •Thicknesses up to 5" •Variety of shapes-bent, square, rectangle, tapered •Single pieces or large quantities •Counter-bored, chamfered and cut to your specifications. Let us know what you need... ULTRAP0LY 1-800-872-8469 253-272-1217 • 253-272-1457 Fax 2926 So. Steele St. • Tacoma, WA 98409 http://www.ultrapoly.com June, 2000 Circle 274 on Reader Service Card 59
