High freight rates sink shipbreaking in Asia

Oct 28, 2005 | 08:44 AM | Ben Garside

High ocean freight rates have left many of South Asia's shipbreakers with few ships to dismantle in the coming months.

Ship demolition sales are at their lowest levels in two years, shipbreakers said, because buoyant freight revenue is encouraging shipowners to do anything possible to keep even their most aged vessels on the water.

Bangladeshi breakers have formed a pricing association that took bids down to $358 per light displacement tonne (ldt) two weeks ago from $390 to $400 ldt for handysized vessels a month earlier. The new association is likely to cut its bids further, analysts said.....

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