Greek owner Adam Polemis seems to be selling yet another crude carrier for demolition at a juicy price.
Brokers in London and the US report that Polemis outfit New Shipping has agreed to scrap the 105,800-dwt aframax Star I (built 2001) in Pakistan at $650 per ldt. This translates into a price of about $11.4m for the South Korean-built vessel.
A deal at such levels would come to confirm the trend of recent weeks, that sees demolition values of ageing tankers rise to become identical and build a floor for secondhand prices.
This is largely due to a shortage of scrapping candidates after the Ukraine war led to a revival in tanker freight rates.
“Many owners are reconsidering their decision [to scrap] and withdraw their assets from the demolition market due to [the] recent spike in tanker chartering rates,” analysts at cash buyer Best Oasis said in a weekly report on 4 March.
New Shipping has been one of the biggest beneficiaries of that trend, having offloaded as many as four such tankers on the demolition market since September last year.
In his most recent move in this direction, Polemis sold the 298,400-dwt VLCC New Inspiration (built 2002), which is believed to have fetched anything between $660 and $666 per ldt in the Indian subcontinent.
Managers at Athens-based New Shipping were not contactable to comment on the reported sale of the Star I. IHS Markit, however, already lists the ship as broken up and AIS data seen on MarineTraffic indicates its latest position at Gadani in Pakistan.
The lion’s share
Tankers accounted for 63% of ship tonnage sold for scrap so far this year, according to Clarksons figures.
“There remains significant uncertainty surrounding the supply of tonnage to the recycling market, with the conflict in Ukraine contributing to this,” the London-based brokerage said in its most recent report.
“The continued lack of tonnage to the recycling market also has the potential to keep price levels firm,” Clarksons added.
Firm demolition prices have reportedly led to other demolition sales comparable to the Star I lately, including that of the 105,600-dwt Gala (built 2000) — a vessel controlled by Middle Eastern interests.
Some owners seem to be parting even with younger vessels. London-based brokers and IHS Markit show the 109,700-dwt LR2 Aquanus (built 2006) as heading towards demolition for a price of about $635 per ldt.
Firm prices are extending to bulkers as well. As TradeWinds reported on 7 March, Singapore’s Berge Bulk has offloaded yet another capesize for recycling in a deal showing “incredibly firm” price levels remain achievable.
According to European brokers, the 174,000-dwt Berge Arctic (built 2001) was sold for green demolition in India at a strong $660 per ldt, or $18.1m.
