With tonnage oversupply expected to plague the shipping industry for yet another year during 2013, it seems that the only viable option for ship owners is to keep on scrapping their older vessels with the current record-breaking rate, while at the same time, limiting, as much as possible, the rate of new building orders, especially in the more overcrowded ship segments, like for instance the Capesize one.
According to the latest data compiled from shipbroker Golden Destiny, the volume of vessels reported to have been headed to the scrap yards now counts at 1202 vessels for January-November 2012, 506 bulk carriers, 167 tankers, 207 general cargo and 148 containers.
Compared with January-December 2011, demolition activity is up by 38% in terms of number of vessels and 58% in terms of deadweight scrapped, the shipbroker said.It added that the past week "ended with 21 vessels reported to have been headed to the scrap yards of total deadweight 544,736 tons. In terms of the reported number of transactions, the demolition activity is up by 62% from previous week’s business with an 80% increase in bulk carrier demolitions.
Bulk carriers held the lion share of this week’s total demolition activity with 9 total disposals against 2 vessel disposals reported in the tanker segment. In terms of total deadweight sent for scrap, there has been an increase of 58%, with India winning 5 of 21 vessel disposals, Bangladesh 1 and China 4 with no deals reported for Pakistan. In terms of scrap prices, India paid $430/ldt for container M/V “MSC DYMPHNA” of 43,224dwt built 1988 SKR with 12,575ldt. At a similar week in 2011, demolition activity was 31% lower than today’s levels, in terms of the reported number of transactions, when 7 vessels had been reported for scrap of total deadweight 215,192 tons with 3 bulk carriers, 2 container and 1 liners’ disposals.
Scrap prices were floating at stronger levels with India and Pakistan offering $460/ldt for dry and $485-$495/ldt for wet cargo" Golden Destiny said.In a similar update on demolition activity, Athenian Shipbrokers said that "the demolition market seems to continue defying trends and projections as prices on offer still hold despite the fast approaching holidays, breakers’ overcapacity and ample supply of tonnage. A few reported sales of desired vessels at presumably speculative levels have helped drive the market.
However, the feeling in general remains cautious throughout the sub-Continent, with the currency and procedural issues plaguing the Indian and Bangladeshi markets showing no sign of abating. The Chinese market has boosted local enquiry with levels once moreapproaching those on offer in India and Pakistan" the shipbroker noted.Finally, the latest Intermodal report stated that "there are still decent volumes of tonnage being offered for scrap two weeks before the end of the year. The uncertainty over how asset prices will move next year has been keeping owners interested in testing the demo market, especially as cash buyers keep their bids fairly stable. This is usually in preparation for the beginning of the new year, a period which has always shown increased activity in scrapping and consequently more firm prices. China is keeping its prices steady as the Chinese currency has been holding its ground against the dollar, making it easier for yards there to attract potential demo sellers and compete with sub-Continent demo nations for candidate demo vessels trading in the North Pacific. Prices for wet tonnages were at around 385-420$/ldt and dry units were seeing levels of about 370-390$/ldt.
According to the latest data compiled from shipbroker Golden Destiny, the volume of vessels reported to have been headed to the scrap yards now counts at 1202 vessels for January-November 2012, 506 bulk carriers, 167 tankers, 207 general cargo and 148 containers.
Compared with January-December 2011, demolition activity is up by 38% in terms of number of vessels and 58% in terms of deadweight scrapped, the shipbroker said.It added that the past week "ended with 21 vessels reported to have been headed to the scrap yards of total deadweight 544,736 tons. In terms of the reported number of transactions, the demolition activity is up by 62% from previous week’s business with an 80% increase in bulk carrier demolitions.
Bulk carriers held the lion share of this week’s total demolition activity with 9 total disposals against 2 vessel disposals reported in the tanker segment. In terms of total deadweight sent for scrap, there has been an increase of 58%, with India winning 5 of 21 vessel disposals, Bangladesh 1 and China 4 with no deals reported for Pakistan. In terms of scrap prices, India paid $430/ldt for container M/V “MSC DYMPHNA” of 43,224dwt built 1988 SKR with 12,575ldt. At a similar week in 2011, demolition activity was 31% lower than today’s levels, in terms of the reported number of transactions, when 7 vessels had been reported for scrap of total deadweight 215,192 tons with 3 bulk carriers, 2 container and 1 liners’ disposals.
Scrap prices were floating at stronger levels with India and Pakistan offering $460/ldt for dry and $485-$495/ldt for wet cargo" Golden Destiny said.In a similar update on demolition activity, Athenian Shipbrokers said that "the demolition market seems to continue defying trends and projections as prices on offer still hold despite the fast approaching holidays, breakers’ overcapacity and ample supply of tonnage. A few reported sales of desired vessels at presumably speculative levels have helped drive the market.
However, the feeling in general remains cautious throughout the sub-Continent, with the currency and procedural issues plaguing the Indian and Bangladeshi markets showing no sign of abating. The Chinese market has boosted local enquiry with levels once moreapproaching those on offer in India and Pakistan" the shipbroker noted.Finally, the latest Intermodal report stated that "there are still decent volumes of tonnage being offered for scrap two weeks before the end of the year. The uncertainty over how asset prices will move next year has been keeping owners interested in testing the demo market, especially as cash buyers keep their bids fairly stable. This is usually in preparation for the beginning of the new year, a period which has always shown increased activity in scrapping and consequently more firm prices. China is keeping its prices steady as the Chinese currency has been holding its ground against the dollar, making it easier for yards there to attract potential demo sellers and compete with sub-Continent demo nations for candidate demo vessels trading in the North Pacific. Prices for wet tonnages were at around 385-420$/ldt and dry units were seeing levels of about 370-390$/ldt.