Those Sellers who were happy to deliver to the Bangladeshi market and were expecting business as usual, were faced with the grim reality of the local situation, only after arrival of their vessels at anchorage. Delays are now inevitable, new regtilations and paperwork turned cumbersome but with patience and cooperation deliveries are taking place.
Miracles should not be expected of a market that has only recently reopened. The spotlight is now firmly on Buyers to adhere to the new guidelines required of them and any deviation of that will no doubt put the market extension under further scrutiny.
Close liaison and cooperation is needed between cash buyers, agents, end buyers and Sellers, in order to effect a smooth delivery. Arrivals of course have to closely coincide with the narrow four day beaching tide and all required clearance formalities/paperwork must be submitted in time and approved by the relevant authorities.
As a result, deals are proving few and far between - but for those mat have been done, Sellers need to be aware that to take advantage of the price and location, certain sacrifices, especially in terms of timings and tides, need to be taken into consideration.
Source: Steel Guru (Sourced from GMS Weekly). 21 February 2012http://www.steelguru.com/indian_news/GMS_weekly_report_on_Bangladesh_ship_breaking_industry_for_WEEK_07/251230.html