Shipowners urged to dispose of elderly vessels sooner
Shipowners are encouraged to dispose of recycling candidates sooner rather than later as demolition prices are expected to come off, according to shipping broker and consultant Braemar Seascope, Seatrade Asia online reports.
Demolition prices for elderly ships have fallen by 25% in 2012 to-date, and lower ship demolition prices are likely to translate into lower offers for recycling tonnage in the coming quarters, said Mark Williams, research director at Braemar Seascope.
Rapid reductions in the value of the Indian, Pakistani and Bangladeshi currencies against the US dollar are causing difficulties for cash buyers and end users struggling to pass on cost increases to their own customers, despite long-term recycled steel demand growth prospects in the sub-continent, Williams noted.