A Wave Of Old Capesize Bulk Carriers Were Sent To Be Demolished

- Feb 28, 2020-

BCI has been in a negative range since it fell to a negative value on January 31. Under the market downturn, dry bulk shipowners also showed "high enthusiasm" for ship dismantling.            

In the past few weeks, with the increase of the number of ships sent to be demolished, the demolition price of the angle of good hope dry bulk ships has also declined by $30 - $40 per light ton.            

In a recent deal, a 172000dwt, abml grace ship was sent to Bangladesh at a price of $375 per light ton for a total price of about $8.3 million, including 200 tons of fuel oil.            

In another earlier deal, mol also sent another 154000 DWT Cape hope dry bulk ship, Tachibana, to India for $390 per light ton for a total price of about $7.4 million. The round needs to comply with the Hong Kong Convention for green dismantling.            

In addition, NGM energy, the Greek owner, recently delivered and demolished a good hope angle dry bulk ship named Ganbei, 172000 DWT, with a delivery price of 390 US dollars per light ton and a total price of 8.3 million US dollars, including 400 tons of fuel oil. It is worth mentioning that NGM bought from centrofin only for us $9 million three years ago.            

In addition, cido shipping in Hong Kong is also very active in the ship dismantling market recently. Recently, a 278000dwt Pacific Opal ship was delivered and dismantled at a price of 394 USD / ton, with a total price of about 14.7 million USD.            

Berge bulk in Singapore recently sold a 211000 DWT, a Berge enterprise ship built in 1997, and got a steel plate price of 395 US dollars / light ton, with a total price of about 10 million US dollars. In fact, Berge bulk has delivered up to six large dry bulk vessels in the past year.            

According to Clarkson's data as of February 14, the tonnage of delivery and dismantling capacity of dry bulk cargo ships increased by 129% year-on-year to 2.4 million tons.            

The Cape of good hope ship is the largest one, with a capacity of 2 million dwt, an increase of 146% year on year.            

So far, at least 14 Capesize and above ships have been taken down, compared with only 5 in the same period last year.            

As mentioned earlier, with the increase in the number of ships demolished, the demolition price of the Cape of good hope ship also declined. A 170800 DWT ship, named hope, was sent to be demolished earlier this month, and the price of the ship built in 2000 was 398 US dollars / light ton. But the current price has fallen to $375 per light ton in the previous case.