27 December 2010

ShipBreaking rises in China:

Chinese shipbuilders, mainly new shipyards struggling for the newbuilding market, have recently been turing into the ship scrapping and/or repairing business, securing scrapping volume at a lower price than India's.

A capesize bulker built in 1981 has recently sold to Chinese yard for scrapping at a price of $448 per LDT, totaling $9m.

In response to increasing requirement to use environmentally-friendly facilities, the scrapping prices Chinese yards offer stay at the $30-$40 lower level per LDT as compared to deliveries, but shipowners still prefer Chinese yards.

Another reason for favoring Chinese yards for ship demolition is the nearest distance as Japan and China are the last voyage place of the ships to be scrapped.

Meanwhile, another ship demolition powerhouse India and Pakistan are still doing scrapping works, but the scrapping is being given little weight.

One of Indian ship scrapping yards has bought a bulker for a price of $470 per LDT totaling $4.4m, but the world's biggest ship scrapping nation Bangladesh has not been able to conduct scrapping works since its 25 yards could not meet environmental standards yet.

Source: asiasis Author, 22 Dec 2010

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