Shipbreaking Expected to Roar Ahead in 2020, as More Ships Could Head for Demolition

0 comments

in Hellenic Shipping News 08/01/2020

2019 could be characterized as an underwhelming year in terms of demolition activity, at least in terms of the comparison between the initial expectations and the end result. However, 2020 could be the year of… redemption.

In its first report of the year, shipbroker Clarkson Platou Hellas said that “as we enter a new decade, it is interesting to recall the vast change to the ship recycling industry over the last 10 years and the positive resolution from India that all recycling yards will be Hong Kong Convention compliant (adopted 2009) within the next 2 years and the expectation that Bangladesh could closely follow suit. Incredible strides have occurred over the last decade by many of the actual ship recyclers themselves to upgrade their yards to a standard that provides a safe and environmentally friendly workplace for the labourers and the local habitat where the yards are located, obtaining plaudits from many along the way (although still attracting continued negative press from environmentalists) and relevant approvals from varied classification societies. The future is certainly looking greener for the recycling industry. In respect of the current market climate, obviously the holiday period has brought with it a much quieter market with little activity and many to still return to their offices, however the sentiment seems to have improved since the time preChristmas and therefore the feeling is that price indications have improved. Evidencing this is the sale of two small container units, reported below, that achieved impressive rates. All recycling destinations appear to have renewed inquiry to purchase tonnage which, in addition to firmer domestic steel prices, should equate to some competitive offering. It will need the first couple of weeks of 2020 to really determine how far the sentiment and price levels have improved”.

Meanwhile, in a separate note, GMS, the world’s leading cash buyer noted that “it has been a roaring start to the year with prices, particularly in India, pushing on to levels approaching (and in the case of certain containers, well above) USD 400/LT LDT. Local steel plate prices have continually been shooting up in Alang over the festive period with over USD 30/LDT gained, subsequently placing India atop the market rankings and in prime position to secure its share of the tonnage, going into what is expected to be a busy and seminal year ahead with the new low Sulphur regulations entering into force. Meanwhile, Pakistan and Bangladesh remain stranded some ways behind, but as we have witnessed historically (and even this week), Chattogram Buyers are liable to jump spectacularly on favored (and often larger LDT) tonnage. On the Western end, Turkey continues to suffer, firmer in price, a weakening Lira, and an ongoing tonnage drought that’s making industry players wonder just how long this market will continue this way”.

“Meanwhile, with many candidates expected to enter the market over the coming year (as higher fuel costs make running some of the older vessels particularly cost prohibitive), the subcontinent markets will likely have much of the market tonnage to share. However, with increasingly tighter bank sanctions on Letters of Credit (L/Cs), it will also be a challenging year for industry players to ensure End Buyers are capable of taking in vessels and releasing funds on time, to ensure deliveries are smoothly coordinated”.
Nikos Roussanoglou, Hellenic Shipping News Worldwide

Leave a Reply

SSCP   CAS-002   9L0-066   350-050   642-999   220-801   74-678   642-732   400-051   ICGB   c2010-652   70-413   101-400   220-902   350-080   210-260   70-246   1Z0-144   3002   AWS-SYSOPS   70-347   PEGACPBA71V1   220-901   70-534   LX0-104   070-461   HP0-S42   1Z0-061   000-105   70-486   70-177   N10-006   500-260   640-692   70-980   CISM   VCP550   70-532   200-101   000-080   PR000041   2V0-621   70-411   352-001   70-480   70-461   ICBB   000-089   70-410   350-029   1Z0-060   2V0-620   210-065   70-463   70-483   CRISC   MB6-703   1z0-808   220-802   ITILFND   1Z0-804   LX0-103   MB2-704   210-060   101   200-310   640-911   200-120   EX300   300-209   1Z0-803   350-001   400-201   9L0-012   70-488   JN0-102   640-916   70-270   100-101   MB5-705   JK0-022   350-060   300-320   1z0-434   350-018   400-101   350-030   000-106   ADM-201   300-135   300-208   EX200   PMP   NSE4   1Z0-051   c2010-657   C_TFIN52_66   300-115   70-417   9A0-385   70-243   300-075   70-487   NS0-157   MB2-707   70-533   CAP   OG0-093   M70-101   300-070   102-400   JN0-360   SY0-401   000-017   300-206   CCA-500   70-412   2V0-621D   70-178   810-403   70-462   OG0-091   1V0-601   200-355   000-104   700-501   70-346   CISSP   300-101   1Y0-201   200-125  , 200-125  , 100-105  , 100-105  , CISM   NS0-157   350-018  , NS0-157   ICBB  , N10-006 test  , 350-050   70-534   70-178   220-802   102-400   000-106   70-411  , 400-101   100-101  , NS0-157   1Z0-803   200-125  , 210-060   400-201   350-050   C_TFIN52_66  , JN0-102  , 200-355   JN0-360   70-411   350-018  , 70-412   350-030   640-916   000-105   100-105  , 70-270  , 70-462   300-070  , 300-070   642-999   101-400   PR000041   200-101  , 350-030   300-070  , 70-270  , 400-051   200-120   70-178   9L0-012   70-487   LX0-103   100-105  ,