The recycling sector is being hit by restrictions imposed at shipbreaking yards in India and Pakistan as a result of the coronavirus pandemic.
New rules on crew movement and bans on beaching have reduced activity and changed the way deals are being carried out, brokers said.
Regulations are changing daily, demolition broker Ed McIlvaney said. He added that the sector is "being devastated" by the restrictions.
In India, all flights have been suspended since 21 March, and scrap candidates with overseas crew on board are not being allowed in, while ships with Indian seafarers are being held in quarantine for 14 days.
There will be no more beaching of vessels until 31 March at the earliest, according to McIlvaney.
In Pakistan, all beaching at Gadani was suspended on 17 March, while the only restriction in Bangladesh appears to be on inbound ships.
A full medical crew is boarding those vessels for checks. Beaching is then allowed, and crews can sign off.
'As is' is where it is at
Clarksons Research said more owners are looking to sell units "as is" as a result of the moves, putting the burden of how the vessel will reach its final recycling destination on the cash buyers.
It added that strategic decisions on sales may be slowing as well, due to the coronavirus uncertainty.
TradeWinds has already reported that China Steel pulled two bulkers out of demolition deals last week.
The 175,800-dwt China Steel Excellence and China Steel Growth (both built 2002) had offers for delivery in Singapore, but were withdrawn due to crewing issues for sellers and buyers alike, market sources said.
'Virtually at a standstill'
"It is understandable why the recycling sector is virtually at a standstill," McIlvaney said.
"Owners and cash buyers alike, with vessels scheduled to arrive imminently at either India or Pakistan, are certainly going to be the worst affected."
He said force majeure declarations could come into play unless a mutual agreement can be achieved to delay deliveries.
Only two sales were reported last week, including Singapore's Berge Bulk continuing its scrap activity with the disposal of its 172,500-dwt Berge Aoraki (built 2000) into Bangladesh for $7.7m.
