Rising rates in the dry bulk sector have dashed hopes of a year-end feast for ship recyclers on the Indian subcontinent.
Recycling sources told TradeWinds that although bulker owners were contemplating scrapping older vessels at the end of November, they have switched their attention to trading amid a spike in spot rates.
Rohit Goyanka of Singapore’s Star Asia Shipbroking said: “Daily spot capesize rates have surged by over threefold within just one month, reaching levels not seen since October 2021, dragging the other dry bulk carriers along as well.
“This has ended hopes of getting end-of-life ships, especially in the dry bulk segment.”
With strong rates also keeping tankers out of the recycling market, this left only the liner sector to feed hungry South Asian ship recyclers, and even then the volume of tonnage being sold remained subdued.
Recycling market reports this week listed only two feeder-size container ships as having been sold.
India’s Shreyas Shipping was reported to have sold the 2,478-teu SSL Delhi (built 2000) on an “as is” basis for redelivery to Alang for $530 per ldt, or $5.6m, while Seychelles-registered TJ Orhan Shipping sold the 1,550-teu TJ Orhan (built 1998) on a delivered Alang basis for $560 per ldt, or $4.1m.
Scrap pricing levels being offered out of South Asia were characterised as being stable, with cash buyers Best Oasis and Wirana Shipping Corp noting a slight improvement of about $5 per ldt from India.
There were no changes noted in prices out of Pakistan and Bangladesh, which continue to be plagued by currency shortages and difficulties in obtaining letters of credit.
