Two veteran handysize bulk carriers with Middle Eastern ownership links are heading to India for recycling.
The 28,400-dwt Andulus 1 (built 1995) and the 39,100-dwt My Meray (built 1992) were the only commercial vessels reported as being sold for scrap over the past week, apart from a clutch of Russian fishing trawlers.
Indian buyers reportedly paid Turkish owner Andulus Marine Shipping $468 per ldt, or $2.83m, for the Andulus 1.
It has been managed out of Dubai by VRS Maritime Services since being acquired as the Bao Sheng for an undisclosed price in October 2022.
4Brother’s Shipping, which S&P Global lists as having an address care of Eastern Star Shipping in Tripoli, Lebanon, is believed by recycling sector sources to have received a similar per ldt amount for the 39,110-dwt My Meray (built 1992).
The vessel has been under the commercial management of Janchart Shipping of Denmark in recent years.
The sale of these two bulk carriers marks the end of a dismal third quarter for ship recyclers in India, Bangladesh and Pakistan, the world’s three largest ship recycling nations.
According to data from Singapore-based cash buyer Wirana Shipping Corp, India finished the quarter recycling 20 vessels totalling 150,000 ldt, compared to 27 ships with a total of 217,000 ldt in the third quarter of 2023.
Bangladesh recycled 37 vessels totalling 142,000 ldt, compared with 54 ships totalling 322,000 ldt in the third quarter of 2023.
Pakistan, largely absent from the recycling market for the past couple of years, recycled four vessels totalling 29,000 ldt, compared with five ships totalling 55,000 ldt in the third quarter of 2023.
Recycling activity across the Indian subcontinent has been badly hit this year by strong rates across most shipping sectors, as well as a glut of cheap Chinese steel sold into the region for prices that are often below that of locally produced recycled steel.
According to the latest SGX Commodities report, the Shanghai rebar index reached as low as $435 per tonne towards the end of last week.
With strong shipping markets and cheap Chinese steel exports looking set to continue for the foreseeable future, so will the pessimistic tone that has been prevalent in most ship recycling reports published throughout the year.
