Cash buyers have bought a pair of capesizes, doubling the number of such vessels heading for demolition since last month, brokers report.
According to Clarksons, Greece’s Golden Union is shedding the 171,400-dwt CIC Pride (built 2002) on an “as is” basis in Singapore at an undisclosed price.
At the same time, Winning Shipping is believed to be divesting the 172,600-dwt Winning Integrity (built 2000) “as is” in Singapore at $602.5 per ldt, or $12.78m in total.
Underwhelming earnings for big bulkers have increased owners’ incentives to part with their capesizes.
Greek players have led the way, with Golden Union having reportedly sold another capesize in mid-August — the 171,500-dwt Captain Veniamis (built 2001), which is also its oldest ship — for about $550 per ldt.
Chartworld Shipping, another Athens-based company, was this month said to be scrapping the 174,100-dwt Star Tianjin (built 2004) for $600 per ldt, including bunkers.
“The market finally shows signs of life after an absolutely inert summer,” cash buyer GMS said in its weekly report on Monday.
“Following an incredibly quiet three-four months of inactivity, there are signs of demand gearing up across subcontinent locations.”
Uncertainties about the future course of the bulker freight markets remain, however, causing doubts as to whether the vessels’ cash buyers will actually send the ships for demolition.
According to Clarksons, “it remains to be seen whether they do arrive at a recycling destination in due course or if indeed the cash buyers attempt to trade them further”.
Of the four capesizes named above, only the Star Tianjin is heading towards India.
The Captain Veniamis is ballasting at Taboneo anchorage in Indonesia. Managers at Golden Union did not immediately respond to a query as to whether they have sold the CIC Pride for demolition.
Contacted by TradeWinds, an executive at Winning Shipping said he had not been told of any scrap sale of the Winning Integrity, the company’s second-oldest ship, which vessel trackers show to be underway laden in the East China Sea.
However, a sale of the Winning Integrity at $602 per ldt would confirm price levels are heading north, as the demolition market thaws.
According to Clarksons, 2.4m dwt of capesize tonnage has been sold for scrap since 1 January. It is the first time this year that the pace of capesize demolition has exceeded last year’s levels, up 1% year on year.
Overall bulker demolition, however, is still below 2021 levels. It currently stands at 3m dwt since 1 January, down 16% year on year.
Irene Ang contributed to this article
