CAPESIZE DEMOLITIONS STAGNANT

peterzhang11 · 发表于 2009-10-14 14:52

Demolitions of Capesize bulkers (100,000-dwt or over) have been evolving at low levels, with only seven units scrapped since January 2009. Worldwide, there are still about 70 superannuated Capesizes aged over 25. However, given that freight and charter rates have stayed above break-even points for superannuated ships since the turn of 2009, shipowners appear hesitant to demolish their vessels.
The dry market boom, which lasted until the first half of 2008, ended up prolonging lives of superannuated bulkers which should otherwise have been demolished. However, the nosedive in the market in the fall of 2008 sent bulker rates tumbling below the ship lay-up point, gathering momentum for scrapping. Thus, 13 aged Capesizes were demolished in 2008, compared with nil in 2007. Growing awareness of safety and environmental protection worldwide also backed up demolition.
According to major German ship finance group DVB Bank, there were 74 Capesizes, aged 25 or older, and 106 ones, aged between 20 and 24 years in operation worldwide as of early 2009. Given this, DVB forecast that more than 100 Capesizes will be scrapped over the next two years. However, the sustained firm undertone in Capesize rates makes demolitions stagnant.