Greek shipowners warn of market correction if wars end

Greek shipowners are warning of a potential sharp market correction if geopolitical tensions in the Middle East subside. Speaking at the 16th Annual Capital Link Operational Excellence in Shipping Forum, industry leaders Harris Vafias, Petros Pappas, Aristides Pittas, and Antonis Kanellakis noted that current high freight rates, record prices for secondhand vessels, and full shipyard orderbooks are being driven by ongoing conflicts.

Harris Vafias highlighted a significant trend in the secondhand market, where 20-year-old vessels are commanding prices nearly equal to those of newer ships, a phenomenon not seen since the 2008 shipping cycle peak. He cautioned that while the market remains bullish as long as wars continue, an end to these conflicts could lead to a sudden downturn in vessel valuations.

Demand in the shipbuilding sector is also extremely high, with available slots in quality shipyards nearly exhausted through 2029. In Japanese shipyards, discussions regarding deliveries have already extended into 2031, allowing yards to demand higher prices for future deliveries.