Greek and South Korean shipowners have led the way as capesize scrapping activity moved into double figures following an active start to this year.
In a pressurized demolition market, cash buyer GMS says over 10 capesize bulkers have now been sent to the breakers as rates languished in the first quarter.
With 10 panamax containerships and some converted VLOCs also sold, the cash buyer urged some some caution moving forward.
“Weak freight markets and bullish demo levels can only mean a continued glut of vessels hitting the market, which is only going to put further downward pressure on prices in the months ahead,” it said.
Greek owners account for three of the larger bulkers scrapped, according to data from VesselsValue.
John Angelicoussis has been the largest contributor with two ships, the 171,000-dwt Anangel Dynasty and the Anangel Destiny (both built 1999) sold for demolition, the same source says.
The tycoon has four other large bulkers built before the turn of the century which are valued at their demolition price or below, according to VesselsValue data.
Petros Pappas is the other Greek to commit a capesize bulker to the breakers this year, with Star Bulk scrapping one vessel as previously reported by TradeWinds.
George Youroukos’s Technomar also scrapped a capesize in December 2018.
It is not only Greek owners who have been weighing in older bulkers during a difficult start to 2019 following economic headwinds and a tragic dam collapse in Brazil.
VesselsValue lists four separate South Korean shipowners, Korea Shipping Corp, SK Shipping, KG Maritime and Korea Line, having sent capesize ships for scrap, predominantly in Bangladesh.
The activity is not a surprise given the depressed freight rates seen this year and the revisions of a cluster of analysts in the wake of the Vale dam disaster.
Clarksons Platou Securities says capesize rates have averaged just $9,600 per day this year, down from $13,800 per day in 2018.
The reactivation of capesize scrapping comes after a quiet 2018 which saw just 70 bulkers across the main sub-sectors scrapped, according to Greek broker Allied.
VesselsValue data records 17 capesize bulkers and ore carriers demolished last year.
