SUPER-HEATED RESALE MARKET!

Every so often it's instructive to review a little history.  Yesterday, July 11,2007, a batch of ship sale reports contained three sales that triggered references to past sales history:

(1.) The capesize bulker GRAN TRADER, built 2001, 172,259 DWT, was reported sold for $105.0 million.  On July 21, 2004, the GRAN TRADER was reported sold for $57.0 million.  This ship, three years older has increased in value by 84.2%.

(2.) The panamax bulker MEGA WISDOM, built 2001, 76,397 DWT, was reported sold for $51.0 million. On May 19, 2006, the MEGA WISDOM was reported sold for $32.0 million.  This ship, fourteen months older, has increased in value by 59.4%.

(3.) The handymax bulker MED CARRARA, built 1981, 43,300 DWT, was reported sold for $15.3 million.  On February 28, 2003, the MED CARRARA was reported sold for $3.5 million.  This ship, four years older has increased in value by 337.1% - even though it is now 26 years old!

I think that these sales are indicative of an overheated market that cannot long be maintained.  When the meltdown will occur is the big question, and I'd certainly tell you if I knew.