Dry Cargo

Bulker order/demo ratio hits eight-year high

The ratio of dry bulk orders placed compared to vessels scrapped has risen to its highest level this year since 2010, according to analysis from Alphabulk.

Bulker orders placed this year are now in excess of 33m dwt, on track to surpass last year’s total.

By contrast, demolition activity has almost ground to a halt, Alphabulk reported, as owners hold on to ships in the hope of rates improving. Just 3.4m dwt (38 ships) has been scrapped so far this year, of which 40% were torched in the first two months of 2018. 225 ships were scrapped in 2017.

The ratio of tonnage todered to demolished has jumped to nearly 10 times in the first nine months of the year, the highest level in eight years, a concern for a fragile sector that is still fully out of recession.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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