Japanese shipbuilders have effectively been priced out of the medium sized dry bulker market, based on newbuilding prices alone.
“Japanese yards are now talking $32/33m for Tier III kamsarmaxes and over $30m for ultramaxes which looks way too expensive based on both current period rates and the competition from China which is 15-20% cheaper,” says UK shipbroker Affinity (Shipping).
“Having sold out of all their Tier II slots earlier this year, the yards are now facing up to the challenge of selling Tier III.
