Shipbreakers draw hope from rate slump

Aug 05, 2005 | 05:27 AM | Ben Garside

Falling freight rates have raised hopes of an increase in shipbreaking activity, with Bangladeshi breakers lifting their prices to buy the first capesize vessel available for scrapping in 18 months.

A Bangladeshi breaker's yard paid $365 per light displacement tonne (ldt) for a 20,778-ldt capesize dry bulk carrier.

But Bangladesh is virtually the only player in a market that has been plagued by inactivity in the past year, with Indian and Chinese yards remaining quiet, according to analysts. Bangladesh is now offering $380 to $400 per ldt for panamaxes, which breakers in other countries have declined to match, according to a shipping analyst in Greece.....

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