The demolition market has come to a complete halt as all the major Indian subcontinent markets suspended vessel imports.
The coronavirus outbreak is preventing all deals from being concluded, sources said.
Leading importer Bangladesh this week suspended all beachings with immediate effect, up to at least 7 April, when the authorities will review the situation.
The only previous restriction in Bangladesh was for inbound ships. Medical crews were boarding those vessels for checks. Beaching was being allowed, and crews were able to sign off.
The Bangladeshi shutdown followed strict restrictions in India and Pakistan imposed last week.
In Pakistan, all beaching at Gadani was suspended on 17 March.
India has now gone into lockdown for 21 days.
The Gujarat Maritime Board (GMB) issued a notice declaring force majeure at the state's ports and waterfront in response to the national government’s containment measures against coronavirus.
The notice calls for the local maritime industries to fall in line with government measures to contain the virus and in effect brings Alang’s shipbreaking business to a temporary halt.
Brokers are estimating it will be at least three weeks before recycling in the region resumes.
The GMB is closing its offices until 31 March and only essential staff will remain on standby. It requested “all stakeholders to sincerely implement the preventative and precautionary measures" by the national and state governments.
Authorities added that all the region’s ports could consider Covid-19 as “valid ground for invoking force majeure on activities and operations”.
TradeWinds earlier reported how crew on ships ready for demolition in Alang are not being allowed to disembark, while vessels with Indian seafarers are being held in quarantine for 14 days.
Demolition broker Ed McIlvaney said that there would be no beaching in India and Pakistan until 31 March at the earliest.
Until recently, the sales market for large bulkers continued to be busy and the last confirmed deal took place only a couple of weeks ago, when Berge Bulk sold its 172,000-dwt Berge Aoraki (built 2000) to Bangladesh for $460 per ldt.
Deals pulled
In the middle of March, China Steel Express put up the 175,000-dwt China Steel Excellence and China Steel Growth (both built 2002) for scrap sale. Last week, both ships were pulled from the market, with crewing issues related to buyers and sellers given as a reason for the aborted sales effort.
"It is understandable why the recycling sector is virtually at a standstill", McIlvaney said.
He added that the sector is being "devastated" by the Covid-19 outbreak.
