Soaring shipping rates affect shipbreaking positively

Archiv – Ship scrapping accelerated in Asian countries like India, Bangladesh and Pakistan after a plunge in the price of obsolete carriers attracted buyers, the largest US cash purchaser Global Marketing Systems says to news agency Bloomberg.
The demolition sale price of a general cargo ship based on its empty weight, so-called light displacement tonnage, fell to US$225 a tonne in Bangladesh compared with US$680 in July, the company says. United States | Ship scrapping accelerated in Asian countries like India, Bangladesh and Pakistan after a plunge in the price of obsolete carriers attracted buyers, the largest US cash purchaser Global Marketing Systems says to news agency Bloomberg.
The demolition sale price of a general cargo ship based on its empty weight, so-called light displacement tonnage, fell to US$225 a tonne in Bangladesh compared with US$680 in July, the company says.
’Market fundamentals at India and Bangladesh leveled off and local recyclers came back to the bidding tables with optimism and willingness to buy,’ Global Marketing, based in Cumberland, Maryland, said in a note yesterday. Increasing demolition would curb fleet expansion at a time when rates for leasing out carriers have fallen by the most on record.
A slowing global economy, constrained credit, an ore pricing dispute between Brazil and China and a growing fleet caused the Baltic Dry Index to fall 93% since May 20. One tanker, six ore, coal or grain transporters, two container ships and one car carrier were sold in Pakistan, Bangladesh and India last week, Global Marketing comments.
Bangladeshi banks are now issuing letters of credit to the nation’s buyers because the trade is sufficiently profitable, it adds. In India ’banking conditions have not improved much’, GMS says.