Dry Cargo

Bumper week for scrapping capesize bulk carriers

London: Buyers in Pakistan cleaned up this past week, elbowing Bangladesh out of the way to acquire the week’s biggest units, three capesize bulk carriers and one very large ore carrier (VLOC).

Singapore-based Berge Bulk sold its 46,250-ldt VLOC Berge Vik (310,700 dwt, built 1987) to Pakistani buyers for the price of $430/lt ldt ($19.89m total). GMS, the world’s biggest cash buyer of steel, called the price “show-stopping” and said the unit was sold to “one specific buyer with a hot end user in mind”.

Greek owners continued their capesize spring cleaning this past week. Last week, owners from the country sold three capes, mostly to Bangladeshi buyers.

Sea Pioneer sold its 19,856-ldt cape Prosperity (161,200 dwt, built 1995) to Pakistan for $420/lt ldt or $8.34m in total. This was Sea Pioneer’s last remaining bulk carrier, representing its exit from the dry market. The owner now operates just four MR product tankers.

Alpha Bulkers scrapped its capesize Alpha Action (150,800 dwt, built 1994) in Pakistan this past week. The 18,615-ldt unit was sold for $422/lt ldt, making the sale worth $7.86m in total.

Meanwhile, Angelicoussis-led Anangel Maritime has sold its fourth bulk carrier in the space of a month, Anangel Omonia (73,500 dwt, built 1996). While the three cape vessels it has sold previously have made their way to Bangladesh, the 10,472-ldt Omonia was sold to Pakistan with bunkers remaining on board for $400/lt dwt ($4.19m total).

So far this year, 34 capesize vessels have been sold for demolition, compared to just nine in the same period last year.

Nineteen capes have ended up on Bangladeshi beaches this year, with Pakistan buyers taking six so far; five have been sold to India and four sold to China. A remaining vessel was sold to an unknown buyer, according to data from VesselsValue.com.

India continues to be the country that pays the most per long ton for general cargo vessels ($390/lt ldt) and tankers ($410/lt ldt); its nearest competitor Pakistan is paying $385/lt ldt and $405/lt ldt for these ship types respectively.

Prices in both countries show a $5/lt ldt improvement on last week for general cargo vessels; tanker prices are holding steady.

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.
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