Indonesian shipowner Andhika Lines has made a rare excursion into the demolition market, offloading a veteran panamax bulker and taking advantage of the uptick in scrap prices.
The 71,300-dwt Andhika Nareswari (built 1996) was reported by several brokers as sold “as is” Singapore for $515 per ldt, or $5.3m.
The ship was reportedly bought from Greece’s Kassian Maritime as the North Princess in July 2015 for a price that was said to be around $4.1m.
The sale leaves Andhika with three bulkers, all panamaxes built between 1997 and 1998, which could be demolition candidates soon.
Clarksons said recycling activity remains limited, leading to higher competition for the few candidates being circulated for demolition.
“The supply of tonnage to the recycling market is being impacted by firm asset prices, elevated earnings and positive short-term sector outlooks, supported in part by ongoing disruption to shipping through the Red Sea which is leading some owners to postpone decisions on disposing of vessels,” the broker said.
“Indian recyclers are currently offering the most competitive prices for vessels; yards in the country have increased price levels significantly, reaching into the $500 range.
“The guideline recycling price for a handysize bulker in India has risen from $490 per ldt at the end of March to $535 per ldt in recent weeks, an increase of 9%,” the broker added.
Brokers also reported that a former Greek cruise ship had been sold for recycling on the Indian subcontinent, but financial details were not disclosed.
The ship is the 37,800-gt Bella Fortuna (built 1982), which was formerly the Piraeus-based Celestyal Cruises’ Celestyal Olympia.
TradeWinds reported in January 2024 that the ship had been sold to a Marshall Islands-registered single-ship entity Voyage Shipping and at the same time switched from the Maltese flag to Liberia.
Reports at the time indicated that the vessel was acquired for further trading, with some observers suggesting it may be used to launch a new cruise venture.
In Europe, Maersk offloaded a feeder vessel, the 3,003-teu Jeppesen Maersk (built 2001) to breakers in Turkey for an undisclosed fee.
In the year to date, 4.7m dwt has been recycled, which is in line with the 2022/2023 run rate, two historically low years of recycling, according to Clarksons.
