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Saturday 9 March 2013

Rise in dry bulk scrapping in 2013

(SeeNews) - Feb 21, 2013 - The scrapping activity in the dry bulk sector will increase in 2013 with the average age of scrapped vessels dropping further, as shipowners are trying to find employment for their ships amid weak demand, UK-based Drewry Shipping Consultants said.
The average age of vessels of the smallest Handysize segment sent for demolition will go under 30 years in 2013, after having fallen to 30.1 from 32.4 years in 2012, Drewry said in its latest Dry Bulk Forecaster report.
A similar situation is observed in the Panamax vessels amid strengthening of the larger Post-Panamax type on the market.
According to Drewry's preliminarily data, in the fourth quarter of 2012 a total of 6.8 million deadweight tonnes (dwt) were scrapped, twice as much compared with the same period a year ago.
Further, almost 11 million dwt of Capesize tonnage was scrapped, or more than the overall dry bulk tonnage sent for demolition in 2009, Drewry said.
The record-high scrapping activity in 2012 among the shipowners was prompted by weak freight rates. However, such initiative will not lead to improvement in the freight rates due to the growing new tonnage, Drewry underscored.
The global fleet of dry bulkers rose by 12.3% on the year to 679 million dwt in 2012. A total of 28 million dwt are slated for delivery in 2013, most of which will be in the Post-Panamax and very large ore carrier (VLOC) sectors.
The freight market is not forecast to improve in 2013, Drwery said, adding that more dry bulk shipping companies will have financial problems.

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