AsiaDry Cargo

‘More owners are scrapping their ships than ever before’: BIMCO

Copenhagen: Capesizes are set for a record year of demolition, shipowning organisation BIMCO says in a recent report.

Data from the first four months of 2015 shows that more owners are scrapping their ships than ever before, BIMCO said.

Since the beginning of 2015 demolition has gone up for all of the ship sizes within the dry bulk segment with capesizes topping the charts. In 2014, 25 capesize ships totalling more than 4.2m dwt were scrapped. With not even half of the year complete the numbers have already more than doubled. During the first four months of 2015, 52 capesizes with a total dwt of around 8.7m have been sold for demolition.

“The numbers are hastily approaching the level of 2012 where a record total of 70 capesize ships where scrapped,” BIMCO said in a report.

“The increase in capesize scrapping comes at a much needed time for the market. Looking at the development so far this year the fleet growth has actually been negative, with a reduction of 0.8 %,” said BIMCO’s chief shipping analyst Peter Sand.

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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