201 Cargo Ships Scrapped in First Half of 2019

The number of ships sold for demolition in the first half of 2019 fell for almost all sectors, compared to the same period a year before, a VesselsValue scrapping roundup has revealed.

A total of 201 cargo ships were sold for demolition in the period, with 75 percent of them being scrapped at either Bangladesh or India, with Bangladesh receiving the majority share.

Worth noting is that the numbers were 18 percent lower compared to the first half of 2018, a knock on effect from the collapse of the Brumadinho dam in January, VesselsValue noted.

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 numbers by vessel type, the container sector saw the greatest increase. Total TEU scrapped increased by over 100,000, or 370 percent, compared to the six-month period of 2018.

Bulker sector scrapping rose by 55 percent as opposed to the same period a year before.

The number of tankers scrapped in the first half of 2018 was three times the number of tankers scrapped in the first half of this year, showing a clear dive in the number of tankers scrapped this year.

The small dry sector was the only sector to remain consistent in terms of the number of vessels scrapped, in comparison to last year.

The positive outlook on the gas sector continues to see little scrappage, according to VesselsValue. Only two LNG carriers were scrapped in the first six months of this year, both for delivery in Bangladesh.

Image Courtesy: VesselsValue