looking to scrap their older vessels, are more likely to find a good deal in
the Pakistani scrap yard market. In its latest weekly report by a leading
shipbroker, the report said that “it has been a week emphasizing how this
market is ever changing and volatile, ensuring it always difficult to know a
vessels true market value.
Pakistan still remains the most eager
destination for vessels
to the shipbroker, “Pakistan still remains the most eager destination for
vessels, and the strongest in terms of price levels, of all three Sub-Continent
markets, however, some question marks have been raised concerning recent ‘high
priced’ acquisitions which is reportedly leading to a ‘standoff’ between the
cash buyers with tonnage in hand and the recyclers
the recent improvement in offered prices has been a bullish factor that has
already increased activity in the Indian Sub-Continent. Bangladesh, which was
leading the market during the first half of the year, has seen its market share
reduced due to improved fundamentals in other destinations. However, it remains
a robust option and we expect activity in the country to retain at fair levels.
Strong return of Pakistan not just a
The unexpected strong return of Pakistan seems
now to not be just a temporary affair. Activity from local breakers there
remains robust and this is expected to continue throughout most of the final
quarter of the year”, the shipbroker noted.
regions, particularly India, regarding the continuing rise of Covid-19 cases
and the handling of the virus and importantly, how they intend to deal with the
With little supply of vessels on the horizon
however, prices have a chance of recovering from the slight decline seen this
week and hovering around the mid USD 300’s as many Cash Buyers have very little
in hand and this is contributing to their frustration which could inevitably
lead to some panic buying from some”, Clarkson Platou Hellas concluded.
Divergent pattern emerge between the dry
bulk and tanker sectors in the ship recycling market another ship broking firm
in its latest report said
ship broking firm in its latest report said they notice a divergent pattern
emerge between the dry bulk and tanker sectors in the ship recycling market. In
the case of the former, the improved sentiment and healthier freight earnings
have curbed interest amongst owners of vintage dry bulk tonnage. However
despite this, this past week we noted a significant number of dry bulk units
being scrapped. In terms of the latter, the uninspiring performance of freight
rates has led owners of vintage tanker units to negative PnL accounts, pushing
them to take up the retirement option for some of the older units.