International Shipping & Logistics (ISL) is in the process of selling its panamax bulker ISL Star (built 1999) for recycling.
The Dubai-based shipping arm of India's Tata Group said that indications in recent broking reports that the 74,500-dwt vessel was sold for $525 per ldt, or $5.34m, are premature as although discussions are underway, no deal has been concluded yet.
A sale of the ISL Star would have been the largest transaction last week in terms of ship size. Instead, Indian, Pakistani and Bangladeshi recyclers were left hauling in a disappointing net of small sub-10,000-dwt ships that, in a strong scrapping market, would have probably been passed over in favour of larger ships.
Brokers and cash buyers said in their latest market reports that current pricing levels in the low-$500 per ldt range across the Indian subcontinent are not enough to entice owners of larger ships to recycle, and with reduced demand in domestic steel markets across all three countries, recyclers remain cautious and unwilling to raise their price offerings.
However, all ship recycling facilities were said to be eager to secure tonnage on their beach before Ramadan begins in early March, a period marked by a significant slowdown in yard activity. Even the arrival of a small ship would help recyclers sustain operations throughout the month-long religious holiday period.
This led to recyclers in Alang buying three ships, the largest being the 1,388-teu container ship Meratus Medan 2 (built 1991), acquired from Indonesia’s Meratus Line on an “as is Jakarta” basis for $505 per ldt, or $3.68m.
Liberian-registered Shiptraco sold the 3,400-dwt general cargo ship Oscar I (built 1981) to an Alang-based ship recycling facility for $475 per ldt, or $480,000. Belize-registered Jamil Shipping sold the 6,800-dwt general cargo ship Aljamil (built 1977) to Alang at $480 per ldt, or $1m.
Elsewhere, Turkish owner Onal Gemi Isletmeciligi Sanayi’s 9,200-dwt general cargo ship Kaptan Hasan Onal (built 1989) was sold to Pakistani ship recyclers at $437 per ldt, or $1.4m.
U-Ming Marine Transport is said to have sold the 6,200-dwt cement carrier Asia Cement No. 1 (built 1980) to cash buyers on an “as is” basis at $363 per ldt, or $811,000. According to brokers, the sale contract stipulates that the ship be recycled in Chattogram at a yard that adheres to the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships.
Sansho Kaiun of Japan sold the 5,000-dwt molten sulphur tanker Eastern Tiger (built 1997) to undisclosed cash buyers. Pricing details have yet to emerge in the market, and the deal is said to include “subcontinent options”.
Also sold to cash buyers for recycling at an as-yet undetermined location was Hong Kong-based Elay Marine’s 8,100-dwt stainless steel chemical tanker Kelsie (built 1994). The German-built ship was sold on an “as is” basis in Batam, Indonesia, for $865 per ldt, or $3m.
The high price was said to reflect the 350 tonnes of stainless steel built into the vessel’s cargo tanks.
