Despite a 30% spike in prices for scrap, just 1,300 teu of cellular tonnage was sold for demolition in the past 60 days as operators seek out and deploy every containership that can pass survey, says an article published on loadstar website.
Scrap market
Indeed, notwithstanding scrap buyers offering around $600 per ldt – which hard-pressed shipowners would have jumped at a year ago, particularly for their ageing uneconomic vessels – they are now receiving astonishing offers from carriers for their ships, many times higher than they could achieve on the demolition market.
The consultant identified only 15 container vessels, for a total of 12,431 teu, that had been dispatched to the recycling yards in the first six months of the year – this is in stark contrast to the 56 for 143,000 teu scrapped in the first half of 2020.
And Alphaliner added: “The second half of 2021 is expected to see a persistently low number of demolition sales in the face of a continuously strong charter market.”
Vesselsvalue data
According the Vesselsvalue data, the scrap and market value of a classic panamax ship just six months ago was around $9m. Today’s demolition value has increased to around $12m, while the market value for even an elderly ship has leaped to something north of $50m, and is rising daily.
Olivia Watkins, head cargo analyst at Vesselsvalue, explained: “Owners, like MSC, have been buying vessels instead of entering the charter market as it works out more effective. For example, the 2002-built 4,839 teu Mexico sold for $50.5m to MSC at the end of June. The alternative on a five-year charter could cost up to $70m.”
Summary
- Despite a 30% spike in prices for scrap, just 1,300 teu of cellular tonnage was sold for demolition in the past 60 days.
- Indeed, notwithstanding scrap buyers offering around $600 per ldt.
- The consultant identified only 15 container vessels, for a total of 12,431 teu, that had been dispatched to the recycling yards in the first six months of the year.
- According the Vesselsvalue data, the scrap and market value of a classic panamax ship just six months ago was around $9m.
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Source: loadstar
