CENTRO INTERNAZIONALE STUDI CONTAINERS
ANNO XXXVIII - Numero LUGLIO 2020
CONTAINERSHIP DEMOLITION INCREASING, BUT SCRAP PRICES HAVE
FALLEN 25% THIS YEAR
With the containership charter market in the doldrums,
demolition sales have picked up, with reports of a number of vessel
Among them is the 1998-built 9,600 teu Sine Maersk (pictured
above), which has been sold to Turkish breakers and will become the
largest containership ever sent for recycling.
According to vesselsvalue.com, the post-panamax ship has been at
anchor off Aliaga, Turkey, since 29 June and is due to be handed
over to buyers today for an undisclosed price.
The online service lists the vessel as having a current scrap
value of $11.7m, from a 2006 peak of some $150m.
However, Alphaliner notes that Maersk is likely to receive about
$100/Ldt less scrapping the ship at a Turkish yard than the carrier
could have obtained in the Indian subcontinent.
Maersk ballasted the ship from Oman to Turkey via the Suez Canal
to honour its commitment to sustainable vessel recycling, in
accordance with the Basel Convention and EU Ship Recycling
The Sine Maersk was built at the group's Odense shipyard in
Denmark and was subsequently lengthened, including raising its deck
house bridge, in 2011 to boost its container intake by 2,200 teu.
The consultant noted that two Costamare-owned sister ships, the
7,403 teu ex Katrine Maersk and Kirsten Maersk, had recently arrived
in India for breaking.
According to the most recent data from Alphaliner, as at 22
June, there were 66 containerships of 7,500 teu to 12,500 teu in
lay-up, along with 49 of more than 12,500 teu.
A broker source told The Loadstar that, given the expected
on-going weak demand and the depressed charter market, a number of
10,000 teu ships would be candidates for scrapping.
"I think carriers will be looking to improve their balance
sheets with some demo sales, and the non-operating owners will just
want to get the best deal possible, wash their face and walk away,"
According to London broker Braemar ACM, over the past 30 days
there have been 18 container vessels, with a capacity of 58,500 teu,
sold for demolition, while the total demolished so far this year has
reached 38 vessels for 90,000 teu.
This is somewhat below the 74 ships, for 145,500 teu, scrapped
during the same period of 2019, but the low number reflects the demo
market being stymied for three months due to the pandemic.
However, with the recent acceleration in scrapping enquiries,
the amount of container tonnage recycled this year is likely to
exceed last year's total of 100 ships for 195,500 teu.
But sellers will need to adjust their price expectations to
conclude deals. For example, recent demolition sales by carriers
Evergreen and Yang Ming have only achieved around $280/Ldt, more
than 25% below the market level at the beginning of the year.
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