GMS weekly report on BANGLADESH shipbreaking industry for WEEK 28 0f 2011:

The hearing for whether the market will receive the extension that everybody in the industry is hoping for and expecting, has been put back now until 21st July when the judge is set to review the case and expected to sign the order.

The fact that the market is technically closed and no ships will be allowed to clear inwards for time being, has not stopped certain cash buyers from speculating on the extension being granted. This may be particularly risky for owners who are delivering vessels themselves to Chittagong and may face waiting times at anchorage, unless coordinating closely with their cash buyers.

One such owner has decidedly taken the gamble and concluded M/T DOLPHINA into Bangladesh at USD 530/LT LDT this week. What the future of Bangladesh has in store for this deal remains to be seen.

Last time the Bangladeshi high court judge needed to sign the opening order, it took as long as 6 weeks to get it signed. Most people are budgeting no more than 30 days this time around, but as has been proven time and again in Chittagong, delays inevitably occur and any owners should still be cautious when considering deliveries there.

Source: Steel Guru (Sourced from GMS Weekly). 19 July 2011

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