Owners in capesize scrap spree
Capesize bulkers are stacking up for scrap amid a depressing start to 2015 with Meandros Lines of Greece believed to have exited the sector.
Dr Anil Sharma, president of GMS.
Some 10 capesizes are being mentioned for disposal and are a various stages in the process, cash buyer GMS said in its weekly report.
“Amidst dire rates and a bloated orderbook the writing has been on the wall for this particular segment for some time now,” the report said.
GMS and shipbroking sources say Meandros Lines has sent the 149,000-dwt Coppersmith (built 1995) for scrap at Pakistan.
A figure of $409 per ldt is placed on the sale, which would mean a $9.07m pay day for the owner.
As TradeWinds has reported, Meandros has been looking to sell the vessel as it prepares for the delivery of a suezmax newbuilding.
Brokers say the removal of a number of capesizes would be positive for the market at a time when earnings have been suck below levels that would cover operating expenses. Scrap as many as possible, one broker quipped.
GMS said potential capesize sales come at a time when scrap prices are already down 20\% and have yet to settle following a flood of cheap Chinese billets into the market.
source:www.tradewindsnews.com
