After gorging on large tonnage in recent weeks, including five VLOCs, Pakistani shipbreakers appear to be content with snacking on smaller vessels while they digest their larger purchases.
Cash buyer GMS reported that after enjoying a near monopoly on purchases, Pakistan’s most recent haul indicates a shift to smaller vessels at more moderate prices.
“It may be that Gadani recycling yards are starting to fill up and that sentiments/prices/demand are finally starting to cool off locally, after what has been a largely impressive monsoon performance from this market,” GMS said.
Deals reported this week included Istanbul-based Elit Denizcilik Sanayi’s 11,800-dwt general cargoship Elit (built 1992), which was sold at $355 per ldt, or $1.5m, and compatriot Turkish shipowner Yenal Gemi Acenteligi’s 10,900-dwt general cargoship Nazlican (built 1978), which went for $353 per ldt, or $1.3m.
Lebanese owner Tempus Maritime’s 10,200-dwt general cargoship Transfair (built 1977) and 21,300-dwt bulker Transocean (built 1982) were sold at $351 per ldt, which netted the company $2.9m in total.
Bangladesh wakes up
GMS described rival shiprecyclers based in Bangladesh as “waking up of late” and “starting to threaten the recent Pakistani monopoly on vessels”.
Despite these bullish sentiments about Bangladesh, its shiprecyclers were only able to secure smaller vessels, although at comparatively firm pricing levels.
Purchases reported included Sinokor Merchant Marine’s 834-teu containership Sinokor Yokohama (built 2000) at $385 per ldt, or $1.8m.
The ship had been the subject of a March demolition deal that would have seen it sold to India at $400 per ldt, but the sale failed due to complications caused by the pandemic.
Also heading to Bangladesh is Sea Ray Shipping’s 23,100-dwt multipurpose vessel Yu Wrong (built 2002), which is said to have been sold at $375 per ldt, or $4.4m.
TradeWinds reported on Monday that Indian pricing power remained lower than its two subcontinental rivals due to pandemic concerns, and the only reported sales were three elderly Petrobras tankers and an Evergreen boxship sold for Hong Kong Convention-compliant green recycling.
Also reported to be heading for Alang is Tag Offshore’s 40,000-dwt product tanker Tag Navya (built 1991), which was sold at auction in Mumbai last week for $244 per ldt, or $2.4m, on an "as is" basis. The long-abandoned ship will require towing to its final destination.
Turkish shipbreakers have remained absent from the purchasing scene this week as its EU-certified recycling yards continued to digest a backlog of cruiseship tonnage acquired in recent months.
