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The number of ships sold for demolition in the first half (H1) of 2019, fell for almost all sectors, compared to the same period a year before, a VesselsValue scrapping roundup has revealed.
According to the report, a total of 201 cargo ships were sold for demolition in the period, with 75 per cent of them being scrapped at either Bangladesh or India. Bangladesh reportedly received the major share.
The VesselsValue report made available to media showed that the numbers were 18 per cent lower compared to H1 2018, a knock-on effect from the collapse of the Brumadinho dam in January.
It stated: “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.
“During the first six months of 2018, rates peaked during mid-March at 470/465 (USD per LDT) for tankers and bulkers respectively. This year’s first half saw a lower and later peak of 465/460 (USD per LDT) towards the end of April.”
Breaking down the scrapping by vessel type, it said the container sector saw the greatest increase. Total TEU scrapped increased by over 100,000, or 370 per cent, compared to the six-month period of 2018.
It also indicated that the bulker sector scrapping rose 55 per cent compared to a year ago.
The number of tankers scrapped in H1 2018 was three times above those scrapped in H1 2019, showing a clear dive in the number of tankers scrapped this year.
It however noted that the dry sector remained unchanged during the period in review.
The positive outlook on the gas sector continues to see little scrappage, according to VesselsValue, adding that only two LNG carriers were scrapped in the first six months of this year, both were delivered in Bangladesh.
