Dry bulk shipowners scrap more ships to cut capacity - Bimco
COPENHAGEN - Dry bulk shipping companies are scrapping more of their vessels of all sizes in a bid to support a market that has been blighted by low freight rates and overcapacity, shipping analyst Peter Sand from shipping association Bimco wrote in a note on Monday.
Bimco said 52 Capesizes with a total dead weight tons (DWT) of around 8.7 million were sold for demolition in the first four months of 2015. The numbers are fast approaching 2012 levels when a record 70 Capesizes where scrapped.
Capesize is the largest dry bulk vessel carrying goods such as grain, iron ore and timber.
“The increase in Capesize scrapping comes at a much needed time for the market,” Sand wrote, adding: “Looking at the development so far this year the fleet growth has actually been negative, with a reduction of 0.8 percent.”
Demolition of Panamax ships, the second largest dry bulk segment, has also been on the rise this year as has it for the two smallest segments, Handymax and Handysize.
The increase has taken place despite falling prices for vessels that are sold for scrap, Bimco noted.
Denmark’s shipping company D/S Norden is among the largest operators in the global dry bulk market with 242 owned and chartered vessels. The company reports its first-quarter results on Tuesday.
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