Sinokor Merchant Marine has secured one of the highest scrap prices in recent months for its oldest container ship.
Cash buyers and brokers report that Sinokor obtained $600 per ldt, or $4.18m, for the 1,512-teu Sawasdee Singapore (built 1995) from a ship recycling facility in Bangladesh.
However, Singapore-based Star Asia Shipbroking cautioned that the sale should not be taken as a new benchmark price for container tonnage, as there were some exceptional factors.
The Sawasdee Singapore, which was en route to Chattogram in ballast on Monday, has a valuable 31.9-ton bronze propeller, and the sale included 550 tonnes of bunkers.
Around $550 per ldt is the current pricing level for container ships being offered out of Bangladesh, according to Star Asia and cash buyer Best Oasis.
The Bangladesh market, Best Oasis said, is experiencing a softening phase with a notable decrease in serious offers from recyclers, due to upcoming religious festivities and holidays, and issues with letters of credit.
Market forecasts suggest a potential further decline, driven by the recent weakening of the Bangladeshi taka, which had previously shown signs of strengthening, Best Oasis said.
Commenting on the overall recycling market, Star Asia said shipowners have yet to be persuaded to release their end-of-life vessels.
“Amidst ongoing challenges in the Red Sea, a new group of buyers has emerged, acquiring these end-of-life ships for operations in the region. This development has led to a further depletion of available ships for recycling entities,” it said.
Sinokor is one of many liner operators that appear to have paused their recycling activities since the crisis in the Red Sea broke out last November.
The company recycled four 1990s-built feeder-size container ships between August and September 2023, but despite having a handful of similar-aged vessels in its fleet, no further deals were struck until the Sawasdee Singapore was sold last week.
