Cido Shipping appears to have restarted scrapping its old ore carriers after it was stopped by the coronavirus three months ago.
European demolition brokers said the 277,000-dwt Pacific Garnet (built 1995) has been sold for demolition in Bangladesh for $292 per ldt, or $11.1m.
The price is about 26% lower than the $396 per ldt that the company achieved in early February in a sale of a similar ship, the 278,000-dwt Pacific Opal (built 1995).
Cido Shipping did not immediately respond to a request for comment.
In 2006, the South Korean shipowner bought the Pacific Garnet, which was then a VLCC called C Navigator, from SK Shipping for $42.5m, with a three-year time charter at $35,000 per day.
In 2011, it converted the ship to an ore carrier.
Exit from VLOC segment
In March this year, Cido Shipping also put the 265,600-dwt Pacific Ruby (built 1993) and Pacific Coral (built 1995) up for scrap sales, which would mean an exit from the VLOC segment for the company if those vessels are ultimately sold.
The Pacific Garnet is the first large bulker to be sold by Cido after the Pacific Opal.
Cido Shipping was founded by Hyuk Kwon in 1990 and is known for strong relations with Japanese charterers. The diversified company controls about 100 tankers, bulkers and car carriers.
London broker SSY said the reopening of all three major Indian subcontinent recycling centres has resulted in a noticeable increase in demolition activity.
Bulker scrapping in May rose to 700,000 dwt.
“Despite the virtual standstill during April, dry bulk carrier deletions in January to May of 5.2m dwt [44 ships] were some 1.1m dwt above the dwt total removed during the same period last year,” SSY said.
In addition to these confirmed removals, it has recorded sales for demolition totalling 2.5m dwt, or 16 ships, that have yet to reach the breakers’ yards — 10 capesizes, four handysizes and two handymaxes.
Irene Ang contributed to this story
