Indian sub-continent price levels for most good specification candidates are now well above the psychological $400 per ldt mark.
It was therefore no surprise to see the deal count pick up this week, with some high profile and large (market & private) units confirmed at all locations - even in China and Turkey.
Despite in general freight rates having picked up of late - something that has subsequently kept many eligible vessels in service up to the present time - many owners have decided to cash-in on their older tonnage, as surveys gradually draw closer, GMS said.
A majority of the vessels sent for recycling over the summer involved wet tonnage and this week was no exception.
The sooner Pakistan reopens for tankers, the better, GMS said, explaining that the local recyclers continue to miss out on some quality tonnage. Pakistan gas been closed to wet units for more than eight months, following accidents on board an FSU and an LPG carrier.
Many in the industry are wondering just how long the ongoing momentum will continue and whether the strength would last beyond the next few weeks, given that the markets have improved far too quickly and, as some might consider, even irrationally over the last several weeks, GMS said.
Among the vessels reported sold for recycling by brokers recently is the 1998-built FPSO ‘Schiehallion’ reported sold to Indian green recyclers for $335 per ldt on the basis of ‘as is’ Batam with a towage required.
In addition, the 1972-built converted FPSO ‘Opportunity’ was reported sold to Indian green recyclers for $320 per ldt on the basis of ‘as is’ Johor.
The 1997-built Aframax ‘Eagle Columbus’ was said to have been taken by undisclosed breakers for $405 per ldt on the basis of ‘as is’ Singapore, while the 1996-built Aframax ‘Eagle Boston’ was reported sold to Bangladesh for $400 per ldt.
In addition, 2000-built Aframax ‘Keros Warrior’ was reported sold to undisclosed breakers also on the basis of ‘as is’ Singapore, while the 1989-built LR2 ‘Hadiyah’ was said to have been sold to Bangladesh interests for $400 per ldt on the basis of ‘as is’ Kuwait.