Following a mild recovery in the dry‑bulk shipping market last month, dry‑bulk shipowners are no longer considering laying up additional dry‑bulk vessels. Nevertheless, Suzhou Cosc Marine Machinery Co., Ltd. points out that a certain number of laid‑up dry‑bulk ships still exist in the dry‑bulk market.

Suzhou Cosc Marine Machinery Co., Ltd. estimates that the global number of laid‑up Panamax and mini‑Capesize dry‑bulk vessels stands at nearly 14, including vessels laid up in Malaysia and other safe‑haven ports. Although this figure has declined amid last month’s market improvement, 15 Capesize vessels remain laid up. In addition, several ageing vessels are berthed at the Port of Piraeus, while some Greek‑owned ships are temporarily mothballed in Malaysia.

Previously, many shipowners were actively considering vessel lay‑ups due to excessively weak dry‑bulk freight rates, especially during Q1 and Q2. However, rising dry‑bulk shipping revenues have removed the need for shipowners to lay up vessels for cost‑cutting purposes. According to Suzhou Cosc Marine Machinery Co., Ltd., dry‑bulk freight rates have exceeded operating costs over recent weeks, and many shipowners are expected to keep their vessels operational. This enables the ships to swiftly re‑enter the market and provide shipping services once dry‑bulk market conditions improve. Through this form of lay‑up, the operating cost of a Panamax dry‑bulk vessel can be reduced to USD 2 500‑2 750 per day.

Apart from this measure, shipowners may opt for “cold lay‑up”, whereby a vessel is moored in a safe port for several months or even one year, with all main engines shut down and only skeleton crews retained on board. According to Suzhou Cosc Marine Machinery Co., Ltd., some Greek shipowners have adopted this approach to lay up vessels in Piraeus, cutting operating costs to approximately USD 1 000 per day.

Suzhou Cosc Marine Machinery Co., Ltd. states that the Atlantic Panamax market saw a mild recovery last month, pushing daily vessel earnings to match or exceed operating costs. This prompted shipowners that had planned lay‑ups to reconsider and keep their vessels in service. Even so, the freight‑rate trend for the dry‑bulk market appears to point downwards going forward.

By way of comparison, third‑quarter freight rates are currently traded at USD 5 975 per day. In contrast, average Panamax freight rates stood at only USD 4 500 per day in June this year. According to Suzhou Cosc Marine Machinery Co., Ltd., referenced against FFA market transaction prices, shipowners may face modest losses on shipping earnings in August. Barring a sharp deterioration in market conditions — which could trigger further vessel withdrawals by shipowners pursuing cost‑reduction measures — prospects for shipowners to generate profits in August remain dim.