Dry bulk demo up, rates down

London: The dry bulk collapse has resulted in a flurry of scrapping deals this month as owners rapidly shed old tonnage that holds little chance of ever making money again. Clarkson statistics reveal a number of handy-sized bulkers heading for demolition in the last couple of weeks and brokers indicate there are plenty more deals under negotiation. Not surprisingly, demo rates have come crashing down and are now typically in the $270 per ldt range compared with more than $600 a few months ago. In a historical context, these levels are still firm but further reductions are likely, market sources say. Hellenic Star Shipping has sold three handy bulkers of 1977/78 vintage - the Liberty Star, Dorian Star and Ocean Light which have gone to breakers in Bangladesh at $277/ldt, according to Clarkson, whilst Polembros has sold the Amber, a 1978-built panamax, also to Bangladesh for $275. With virtually no demolition in the dry bulk sector recently, the early months of 2009 are likely to see a large-scale clear-out of ageing bulk carrier tonnage as owners seek to avoid mandatory surveys and costly repairs.  [15/12/08]