The northern hemisphere summer months are usually the quiet period in the ship recycling calendar and this year the Eid celebrations in Turkey would normally add to the slowdown, but demand in the Indian sub-continent has pushed prices past the US$600/ldt level
Ship recycling yards in Bangladesh have offered US$600/ldt or higher for vessels, according to cash buyer and ship recycling consultants GMS.
GMS point to a number of factors, including the slowdown of sales ahead of the imminent arrival of the monsoon season in the Indian sub-continent and the Eid celebrations in Turkey, leaving an under-supply of tonnage available for recycling.
The levels being offered by Bangladesh recyclers are generally for container ships, with tankers approximately US$20/ldt or more lower.
VesselsValue reported the sale of 2003-built, 318,800-dwt VLCC tanker Maya Vn for a reported US$560/ldt to unknown buyer.
Regarding tankers, GMS noted, “There has been a noticeable slowdown in the supply of tonnage of late, but as tanker charter rates continue to suffer, perhaps news of these post-2008 record numbers will entice a growing number of shipowners to commit their ageing units for recycling.”
GMS notes US$600/ldt is a recent high for the demolition market but US$800/ldt was reached during the peak of the shipping boom in 2008, before the market collapsed following the financial crisis.
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