Seatrade Maritime: Bleak outlook at the breakers as prices plunge

Plenty of ships lie at the anchorage in Alang but prices are down again, and deals are hard to close across the subcontinent.

GMS describes the Alang anchorage as ‘a sight to behold’ with 11 ships and more than 120,000 light displacement tons waiting as renegotiations continue and some deliveries complete. But prices have taken a whopping hit, according to the world’s largest buyer of ships for cash, with bulker indications down by around $30 to $390, tankers by $20 to $410, and container ships also down by $20 to $420. The rupee and local plate prices are also under pressure.

The fall in prices is leaving Indian recyclers mostly out of the bidding process, GMS says, adding the Diwali holidays have come at a good time, ironically for sellers and mercifully for yards.

Bangladeshi recyclers benefited from the arrival of a capesize bulker and a medium-range tanker but many yards there are continuing to focus on HK Convention upgrades. Meanwhile, local authorities are scrambling to set out the new requirements, standards, and documentary procedures. Some end-buyers have opted to pick up what meagre units are available at some of the lowest prices prevailing across the subcontinent for some time.

Meanwhile the outlook in Pakistan looks gloomy. Following several bulkers reported for redelivery there recently in the $420 range, the country has no HK Convention-approved facilities. This factor continues to weigh on both shipowners’ and cash buyers’ minds, GMS notes. Prices are still marginally above those prevailing in India, but are likely to slip past the Alang market, itself in ‘freefall’ at the moment.

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Latest GMS price indications show Bangladesh ahead at $440 for containers, $430 for tankers, and $410 for bulk carriers. Next comes Pakistan – down $10 across the board – followed by India, similarly $10 lower. Although no deals have been done in Türkiye, theoretical prices prevailing there are $270, $260 and $250 for the three ship types, respectively.