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.