Eight vessels were sold for scrap to Asian break yards last week

At least eight vessels were sold for scrap to Asian break yards last week market sources told Ocean Intelligence on Monday, including four single-hulled tankers, one of which belonged to CMA CGM, one capesize dry bulk carrier, and a box ship owned and operated by Zim.

Indian breakers led the pack once more, as they have done so for several weeks already, securing three tankers, and a ferry, container ship, and capesize dry bulk carrier each.

The tankers include the Addaraq, the Al Farabi, and the Rio Gallegos I. The ferry is the Blue Monarch, the box ship is the Jakarta Star II, while the capesize is the Kyla.

Ocean Intelligence understands that all three tankers are single-hulled.

According to one maritime source, the Al Farabi is a 1982-built 23,953 dwt chemical tanker, group owned by CMA CGM while the Rio Gallegos I is a 1985-built 12,784 dwt products tanker which had been laid-up prior to its eventual cash sale.

The Rio Gallegos I was previously group owned by Chile's Ultragas Navieras Ltda and operated by Argentina's Antares Naviera SA.

The world's largest cash buyer, US-based GMS, told Ocean Intelligence on Monday that the Jakarta Star II deal “managed to break into $400 per ldt territory – a price level recently reserved only for good tanker units”.

According to a separate source, the fully-cellular box ship - built in 1983 with 14,920 dwt and capacity for around 1000 TEUs – was owned and managed by Israeli liner Zim.

With regards to the Kyla, brokers told Ocean Intelligence that the capesize had been out of the water for repairs prior to its scrap sale.
The 1982-built 134,806 dwt Kyla was owned and run by Greek operators Kyla Shipping.

Over in Bangladesh, the sole deal reported by GMS saw the single-hulled 1982-built 17,000 dwt LPG tanker Surrey, owned and operated by the UK's Zodiac Maritime Agencies, sold for an undisclosed sum.

Pakistani breakers did not do badly in terms of per ldt cash sales, even though only one deal was reported too, as that deal fetched $300 per ldt for the general cargo ship Bonyan.

No market sales for scrapping was reported last week from China, apparently on the back of softening steel plate prices and onset of the Chinese New Year holidays.
Still, brokers are mostly upbeat about Chinese breakers, pointing to many yards having had their licenses renewed, continuing high demand for all types of vessels, and general sentiment about industrial China.

Source: http://www.portworld.com