Taiwan’s Wan Hai Lines has sold for recycling two 1990-built containerships.
The 6,775-lwt Wan Hai 203 has been sold ‘as is’ in the South China/Hong Kong/Taiwan range and the 6,789-lwt Wan Hai 205 ‘as is’ Singapore/Malaysia.
Both have gone for $355 per ldt, equivalent to around $2.4m for each vessel, according to ship recycling sources.
The Hong Kong-registered Wan Hai 203 is 23,729-dwt, with capacity for 1,315-teu. Wan Hai 205, which flies the Singapore flag, is 23,902-dwt and 1,279 teu capacity.
The recycling price achieved is somewhat higher than the ships were said to be attracting in earlier reports. Then buyers were said to be offering closer to $330-$335 per ldt.
Ship demolition specialist Ed McIlvaney said in his last market report that despite an increase in the number of vessels being placed in the market for recycling, many shipowners appeared to be just testing the waters.
Based on offers received, the vast majority of negotiations were failing to produce results. “Hopefully, just on a temporary basis,” said McIlvaney.
The ship scrapping market has been depressed for some time, with prices falling and reports of cancelled sales. A sharp decline in the price of steel plate in India has been one reason.
Further concern has been raised this week with reports that steel and iron ore futures have weakened further due to lower demand for construction and manufacturing products.
