Lila Global has become the first shipowner to scrap a capesize bulker this year, selling one of several such ships it bought off Chinese companies towards the end of 2023.
The Dubai-based shipowning arm of cash buyer Anil Sharma’s GMS has sold the 175,000-dwt Wang Hai (built 2003) to a recycling facility at Gadani in Pakistan for a reported $528 per ldt, or $12.16m.
The vessel, which was anchored off Gadani awaiting beaching on Monday, was acquired as the Xin Wang Hai from Chinese shipping giant Cosco in August for a reported $12.8m with its special survey due.
The ship was delivered in December.
Dry bulk sources believe the ship performed “one or two” commercial voyages for Lila Global, carrying coal from Indonesia to India.
GMS, in its latest market report, waxed lyrical about the prospects of Pakistan now that disastrous credit restrictions that forced Pakistani recyclers to sit on the sidelines for two years have eased thanks to an International Monetary Fund bailout.
“Gadani recyclers are finally back at the bidding tables in full form … and seemingly on fire,” GMS said.
“[They] have been competing so effectively against both Indian and Bangladeshi recyclers of late, they have not only hijacked all of the tonnage opening West of Sri Lanka, but Gadani’s waterfront also remains busier than the combined waterfronts of Alang and Chattogram.”
While other recycling market sources described GMS’ comments as “over-optimistic”, the country did over the past week make the top of the list in terms of dwt acquired for ships with named recycling destinations.
A second but smaller bulker reported as sold to Gadani for recycling came in the form of Dubai-based Al Khalejia Aggregates’ 43,700-dwt Qatar Ana (built 1989), but it was reported sold for a much lower $509 per ldt, or $4m.
However, the price paid for the Qatar Ana was lower than the $518 per ldt that recyclers at Chattogram were reported to have paid Chinese owner Yangpu Zhehai Shipping for the 22,200-dwt bulker Xin Xiang Rui (built 1992).
This, according to market sources, could be indicative of some Bangladeshi recyclers upping their price offerings to compete with their Pakistani peers.
Two weeks ago, Bangladesh was offering just over $500 per ldt for bulkers, with Lila Global accepting $502 per ldt, or $6.32m for the 74,700-dwt Sia (built 1999).
The Sia, another vessel that had a short tenure with the company having only been acquired in December 2022, was beached on 17 February, according to S&P Global’s International Ships Register.
Other reported recycling deals over the past week included three Asian-owned feeder-size container ships, the 2,604-teu Hong Yuan 01 (built 1996), 1,147-teu MTT Tanjung Manis (built 1999) and 599-teu Far East Cheer (built 2007), together with the Chinese-owned 130,000-dwt FPSO Nan Hai Sheng Li (built 1975) and the Singaporean-owned 17,850-dwt naval ro-ro logistics vessel Avatar (built 1983).
Most of these vessels were sold to cash buyers on an “as is” basis with no recycling destinations given.
