Period deals pay

Alpha Tankers & Freighters of Greece appears to have lined up a lucrative fixture for one of its capesize bulkers.
Some fear spot rates won't enjoy steady gains for a few more weeks.

Some fear spot rates won't enjoy steady gains for a few more weeks.

According to the Baltic Exchange, EDF Trading hired the 177,800-dwt Skythia (built 2011) for 12 months at a rate of $25,000 per day.

Observers say the charter illustrates that modern capes are commanding a premium in the period arena as similar units that trade spot are seeing day rates of around $9,800.

Despite lacklustre levels in the spot market several industry forecasters claim asset values are rising and say sale-and-purchase activity remains healthy as well.

Earlier this week DNB Markets told clients that the price tag attached to capesize newbuilings has jumped by approximately 1% over the past seven days on average to around $56m.

The Nordic investment bank believes asset values could spike to $63m by the fourth quarter of 2014 and says it wouldn’t be surprised to see resale prices climb 15% by the end of this year.

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