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Capesize scrapping rates go through the roof

Capesize bulker scrapping rates are soaring as owners struggle with poor freight market.

Marcus Hand, Editor

May 12, 2015

1 Min Read
Kalyakan - stock.adobe.com

In a report Bimco analyst Peter Sand noted that despite low scrap rates of $370 per ldt owners are scrapping more ships than ever before.

While in the whole of last year 25 capesizes totalling 4.2m dwt were scrapped, the first four months of 2015 some 52 capesizes totaling 8.7m dwt have been sent to the breakers yards. The numbers are fast approaching the record of 70 capesizes scrapped in 2012.

“The increase in capesize scrapping comes at a much needed time for the market. Looking at the development so far this year the fleet growth has actually been negative, with a reduction of 0.8 %,” said Sand.

Panamax scrapping is also on the rise with 2.6m dwt sold for demolition so far this year, over half 2014’s total of 4.8m dwt.

For handymax and handysize scrapping rates are up 34% and 79% year-on-year respectively.

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About the Author

Marcus Hand

Editor

Marcus Hand is the editor of Seatrade Maritime News and a dedicated maritime journalist with over two decades of experience covering the shipping industry in Asia.

Marcus is also an experienced industry commentator and has chaired many conferences and round tables. Before joining Seatrade at the beginning of 2010, Marcus worked for the shipping industry journal Lloyd's List for a decade and before that the Singapore Business Times covering shipping and aviation.

In November 2022, Marcus was announced as a member of the Board of Advisors to the Singapore Journal of Maritime Talent and Technology (SJMTT) to help bring together thought leadership around the key areas of talent and technology.

Marcus is the founder of the Seatrade Maritime Podcast that delivers commentary, opinions and conversations on shipping's most important topics.

Conferences & Webinars

Marcus Hand regularly moderates at international maritime events. Below you’ll find a list of selected past conferences and webinars.

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