Demo rates smash through $500 milestone

Demo rates have shot up in recent days, surpassing $500 per ldt and seeing many owners have a change of minds about their vintage vessels.

“The subcontinent market is on an aggressive buying spree with Bangladesh leading the number game,” cash buyer Best Oasis noted in a weekly report, while rival GMS stated: “We are witnessing the highest priced rates seen across the subcontinent for a number of years, with several sales taking place above USD 500/LT LDT on decent spec units.”

GMS questioned how long the demo spike could last given the volatility experienced in the sector this year.
Clarksons Platou urged owners to be quick to secure current rates from starved cash buyers as Ramadan is approaching, which will see many scrap yards down tools next month.

Clarksons Platou reported on the first scrapping of a VLCC this year. The Winson No.5 was sold as is in Singapore for $484 per ldt.

“Perhaps the interest for alternative trades for older VLCC units has slowed,” Clarksons quipped.

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.
Back to top button