Dry bulk players continue to offload their older vessels for scrap as freight rates tumble.
The surge in activity is putting pressure on prices, with the value of capesize bulkers falling by $30 per ldt to $40 per ldt in the past few weeks.
One deal to emerge is the sale of the 172,000-dwt ABML Grace (built 2002) from ABY Group Holding. This ship was sold "as is" in Bangladesh for $376 per ldt, or $8.3m in total.
The deal is understood to include 200 tons of bunkers.
Bangladesh scrapping
Demolition brokers said it is likely that the ship will be scrapped in the South Asian country.
ABY Group bought the vessel from Sincere Navigation as the Mineral Sines for $18.4m in June 2013. It is due for special survey in April 2022.
In another deal, Japan’s MOL has sold its first capesize for scrap in four years.
The 154,000-dwt Tachibana (built 2000) was sold to a yard in India for $390 per ldt, or $7.4m in total.
The vessel had been controlled by MOL since it was new.
Green recycling
The Tachibana is due for special survey this April. The vessel is sold for green recycling in accordance with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships.
In February 2016, MOL also sold the 170,000-dwt bulker Mona Linden (built 2000) for $225 per ldt.
In addition, NGM Energy of Greece has sold the 172,000-dwt Ganbei (built 2001). The ship has gone to Bangladesh for $390 per ldt, or $8.3m in total.
NGM bought the vessel from compatriot Centrofin for $9m almost three years ago.
This deal includes 400 tons of bunkers. The Moundreas company has seven capesizes with an average age of 17 years.
Cido Shipping of Hong Kong is also active the in demolition market, selling the 278,000-dwt Pacific Opal (built 1995) for scrapping in Bangladesh. The ship has gone for $394 per ldt, or $14.7m in total.
The ship was purchased in December 2006 from SK Shipping as the C Planner for $42.5m.
Brokers also said that Berge Bulk has sold the 211,000-dwt Berge Enterprise (built 1997) to Bangladesh. This ship has gone for $395 per ldt or $10m total.
Berge Bulk has already sold six large bulkers for demolition in the past year.
