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Ship owners are being forced to look to alternative locations when it comes to scrapping their older vessels, as the Indian sub-continent’s ship-recycling sector is faced with various challenges. For starters, India counts the cost of the crackdown on black market money and Pakistan remains officially closed after the worst accident recorded. As such, according to GMS’ latest weekly report, “the selective Bangladeshi market has been left as the only open and (not entirely) viable recycling destination at present.”
According to the world’s leading ship buyer, “as we hurtle towards the end of the year, the number of available candidates shows no signs of slowing, particularly Panamax-sized container vessels that seem to get progressively younger with each deal. As such, the world witnessed the sale of a 7 year old ship this week, as the 2009 built (in China) India Rickmers was reportedly out on subs to cash buyers’ basis an ‘as is’ Jebel Ali delivery. It wouldn’t be unexpected to see a record number of containers being sold for recycling this year and it was only 6 months ago that the industry was discussing the possibility of a record year for dry bulk scrapping. However, a recent recovery in dry rates has seen the number of Capesize and Panamax bulkers sold for recycling almost grind to a halt, save for a small collection of units with SS/DD due imminently, whose owners chose not to pass surveys! While the number of capes sold for recycling will probably struggle to hit the 100 mark (or even match the 96 that were sold for scrap last year), the number of containers could likely exceed 150, in a massive rebalancing for this particularly troubled sector. Finally, despite the ongoing meetings and inspections in Pakistan, the market remains officially closed and end buyers are not permitted to commence cutting activities of any vessels on their plots since the accident. Even though some sales have taken place since, until the concerned authorities issue an official green light to resume cutting activities once again, it remains a waiting game for Gadani recyclers for the time-being,” GMS concluded.
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