Asian scrap yards full as owners cut their losses
The dry bulk collapse has resulted in a flurry of scrapping deals this month as owners rapidly shed old tonnage that holds little chance of ever making money again. Clarkson statistics reveal a number of handy-sized bulkers heading for demolition in the last couple of weeks and brokers indicate there are plenty more deals under negotiation.
Much of the tonnage has headed to breakers in Bangladesh, India, Pakistan and China and unsurprisingly, demo rates have come crashing down. They are now typically in the $270 per ldt range compared with more than $600 a few months ago. In a historical context, these levels are still firm but further reductions are likely, market sources say. They point out that most scrap yards are full, at least for the moment, and the substantial volume of tonnage now probably destined for demolition will give breakers plenty of tonnage to choose from. The indications are that prices are likely to fall further in the weeks ahead, with some re-negotiations likely, as yards make the most of their unaccustomed upper hand.
Recent demo deals include two car carriers - the Wilhelmsen-owned Takayama, built 1983, has been sold to Chinese breakers and the 1980-built Gardenia Ace, an Excel Marine vessel, has gone to Bangladesh. Bulk carrier sales include two Panamax vessels - the 1982-built Good Faith vessel Smart 1, 17,790 ldt, and the older 14,227 ldt Athos, built 1977. Both have been sold to Bangladeshi breakers. Other recent sales include around a dozen multipurpose tweendeckers, mostly built in the 1970s, several ageing reefers and a couple of bulk/oil combination vessels.
Hellenic Star Shipping has sold three handy bulkers of 1977/78 vintage - the Liberty Star, Dorian Star and Ocean Light which have gone to breakers in Bangladesh at $277/ldt, according to Clarkson, whilst Polembros has sold the Amber, a 1978-built panamax, also to Bangladesh for $275. With virtually no demolition in the dry bulk sector recently, the early months of 2009 are likely to see a large-scale clear-out of ageing bulk carrier tonnage as owners seek to avoid mandatory surveys and costly repairs.
Much of the tonnage has headed to breakers in Bangladesh, India, Pakistan and China and unsurprisingly, demo rates have come crashing down. They are now typically in the $270 per ldt range compared with more than $600 a few months ago. In a historical context, these levels are still firm but further reductions are likely, market sources say. They point out that most scrap yards are full, at least for the moment, and the substantial volume of tonnage now probably destined for demolition will give breakers plenty of tonnage to choose from. The indications are that prices are likely to fall further in the weeks ahead, with some re-negotiations likely, as yards make the most of their unaccustomed upper hand.
Recent demo deals include two car carriers - the Wilhelmsen-owned Takayama, built 1983, has been sold to Chinese breakers and the 1980-built Gardenia Ace, an Excel Marine vessel, has gone to Bangladesh. Bulk carrier sales include two Panamax vessels - the 1982-built Good Faith vessel Smart 1, 17,790 ldt, and the older 14,227 ldt Athos, built 1977. Both have been sold to Bangladeshi breakers. Other recent sales include around a dozen multipurpose tweendeckers, mostly built in the 1970s, several ageing reefers and a couple of bulk/oil combination vessels.
Hellenic Star Shipping has sold three handy bulkers of 1977/78 vintage - the Liberty Star, Dorian Star and Ocean Light which have gone to breakers in Bangladesh at $277/ldt, according to Clarkson, whilst Polembros has sold the Amber, a 1978-built panamax, also to Bangladesh for $275. With virtually no demolition in the dry bulk sector recently, the early months of 2009 are likely to see a large-scale clear-out of ageing bulk carrier tonnage as owners seek to avoid mandatory surveys and costly repairs.