Week Ending: 7th October 2011 (Week 40, Report No: 40/11)
The week ended with the highest level of activity being recorded in the newbuilding market, firm secondhand ship purchasing activity and lower pace of demolition transactions The week closed with 41 transactions reported worldwide in the secondhand and demolition market, posting a 13.8% increase from a similar week in 2010 when 36 transactions had been reported and secondhand ship purchasing activity was 44.8% lower than the ordering business.
In the demolition market, the downward revision of scrap prices offered by
for dry cargo and the upcoming uncertainty for the extension of new deadline in
market will be the two main factors that are going to influence the firm
scrapping activity seen in September. Market sources suggest that some cash
buyers are now trying to renegotiate highly priced deals achieved at levels
lower than $500/ldt. Bangladesh
Total delivered: The week ended with 10 vessels reported to have been headed to the scrap yards of total deadweight 301,395 tons with some deals concluded some time ago.
Week-on-week comparison: In terms of the reported number of transactions, the demolition activity has been marked with a 44.4% week-on-week decline, due to 78% weekly decline of scrapping business in the bulk carrier segment.
In terms of the total deadweight sent for scrap there has been a 72% decline.
Scrap rates: The highest scrap rate has been achieved this week in the tanker sector by
for a tanker of 68,159 dwt
“LOUKA” with 16,248/ldt at $540/ldt, which implies stronger levels for wet
tonnage in the Indian subcontinent region. India
India attracted 60% of the total demolition
trying to win some new deals before the end of its extension. Bangladesh
Similar week in 2010: demolition activity was down by 10% than the current levels, in terms of the reported number of transactions, 9 vessels had been reported for scrap of total deadweight 264,273 tons with three bulk carriers being scrapped and India offering the highest levels $435/ldt for dry and $465/ldt for wet cargo.
Source: Hellenic Shipping News (Sourced from www.gdsa.gr). 8 October 2011