14 July 2012

Ship scrapping rates nosedive to June 2010 levels:

The depreciating Indian rupee, coupled with an oversupply of vessels and declining scrap steel prices curbing purchases, have taken their toll on the purchasing rates of ships for demolition, pushing them down to the lowest level since June 2010, according to Exim News Service.

The Baltic Exchange apprised that cash buyers, who purchase older ships from owners, for resale to demolition yards in the Indian Subcontinent, were shelling out $ 383 per lightweight displacement tonne for dry cargo vessels.

Lightweight displacement tonnes appraise the weight of an empty ship. Official figures show that countries like India, Bangladesh, Pakistan and China have held sway over the scrap business.

The exchange's weekly assessments show that the current price is the lowest since June 2010, having plunged 23 per cent in a month. This has reduced the demolition cost of larger vessels by more than $ 1 million since May.

Data from the exchange also shows that rates paid for oil tankers in India, Pakistan and Bangladesh is presently $ 410 per tonne, compared to $ 496 a tonne on April 30.

Source: transportweekly

No comments: