No bulkers were sold for recycling 24 May to 30 May as cash buyers anticipate further price drops amid a deluge of such ships becoming available for sale.
With the Baltic Dry Index stubbornly hovering around 600 points, shipowners have been compelled to offload older tonnage that is not generating profits.
IHS Maritime’s Sea-web.com data show that 23 bulkers have been sold for scrap while another 231 bulkers have been torched.
Prices for bulkers range from USD370-390 per ldt in South Asia.
Dubai-based cash buyer Global Marketing Systems (GMS) said that with the possibility that impending budgets in Bangladesh and Pakistan resulting in higher taxes on recycled ships, cash buyers have been reducing their offers by USD7-10 per ldt to mitigate potential losses.
In turn, shipowners have been less inclined to sell bulkers for scrap.
GMS said, “Coupled with a distinct lack of demand coming out of both countries, it could be a quieter few summer months ahead, especially as many owners are now preferring to layup their less profitable older dry units, rather than sell at present levels.”
In addition, Bangladeshi recyclers are in no hurry to acquire tonnage, having bought a big percentage of the 65 Capesizes sold for scrap in 2015.
Due to the situation, the only sales 24 May to 30 May were confined to India.
Atlantic Ro-Ro Carriers’ 1990-built ro-ro Atlantic Nyala was sold for USD3,407,700 or USD370 per ldt, while T-Fleet Management’s 1992-built container ship AT 14 fetched USD1,666,180 or USD367 per ldt.