THE NUMBER of ships sold for breaking up in the first half of this year was fewer than in the corresponding period of 2018, says the analysts VesselValue, of London.
In its scrapping review, the analysts reported that 201 ships were sold for demolition during the six months with 75 of them being scrapped at either Bangladesh or India. VesselValue noted: “The numbers were 18 per cent lower compared to the first half of 2018, a knock-on effect of the collapse of the Brumadingo dam in January.”
The review said demolition rates peaked later into the first half of this year, compared to last year, as tonnage supply became more scarce and yard availability and appetite grew. This year’s first half saw a lower and later peak of US$465/460 per LDT towards the end of April.
Regarding the types of ships broken up, the review stated that the container sector saw the greatest increase and the total teu scrapped increased by over 100,000 or 370 per cent compared with the corresponding period of 2018.
Compared with the first six months of 2018, the number of bulk carriers broken up in January-June this year was up by 55 per cent and the number of tankers scrapped was three times the number in last year’s first six months.
The report said the gas sector continues to see few scrappings with only two LNG carriers scrapped in the first half of this year, both for delivery in Bangladesh.