08 May 2015

Dry bulk vessel scrapping outpaced by new bulk carriers in Q1: Golden Destiny

Dry bulk vessel demolitions continued to be outstripped by the rate of new bulk carriers being delivered in the first quarter, estimates by Greek sale and purchase shipbroker Golden Destiny showed Wednesday.

This was due to the fact that while 119 dry bulk vessels were demolished in Q1, 192 new ships were delivered to owners.

As a result, the world's dry bulk fleet grew by 73 vessels.

The biggest chunk of the tonnage delivered belonged to the Ultramax-Panamax category (60,000-79,000 dwt), which took 69 out of the 192 new ships delivered in Q1, Golden Destiny data showed.

Most of the new ship deliveries occurred in January, with 102 new bulkers entering the market, while in February and March 44 and 46 new vessels were delivered, respectively.

In terms of demolitions, 37 ships were scrapped in January, 46 in February and 36 in March. Of these, 32 were Capesizes (120,000-209,999 dwt), 22 were Supramax-Ultramax vessels while 19 were large Handysizes (35,000-39,999 dwt), Golden Destiny data showed.

The shipping market has been bearish at the start of 2015 as a result of suppressed demand for dry bulk commodities combined with a considerable oversupply of ships.

According to shipping sources, a key solution for the market finding a balance is for more ships to be recycled, but low scrap prices have been putting off many owners from selling their ships for demolition.

Meanwhile, though the existing fleet of dry bulk vessels grew in Q1, fewer new orders placed in shipyards compared with a year earlier.

According to Golden Destiny, 101 new bulk carriers were ordered in Q1, down 68% from 317 a year earlier.

Of these, 20 orders were made by Greek shipowners, down 52% on year.

Orders from Chinese owners saw a sharp decline, with just six new ships ordered in Q1, a drop of 91% from Q1 2014.

Source: plats. 29 April 2015

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