Note: Recycling market (Friday, 29 April)
Published 29. Apr 2022 4:36 PM
40 tankers have been recorded sold for recycling so far this year, which indicates a strong belief that the market is going to turn and owners in general keeping their tonnage anticipating that an upswing is just around the corner and can happen any time.
The recycling market has been on a steady climb for most of 2022 where levels have gone from mid-USD 500/LDT in the sub-continent and mid-USD 300/LDT in Turkey to almost USD 700/LDT in the sub-continent and mid-USD 400/LDT in Turkey today.
It’s a result of very profitable markets such as containers and dry bulk, which have kept most Owners away from the idea of selling their vessels for recycling. Even in the less profitable segment, tankers, Owners have been holding on to their tonnage, as many believe that the market will come back strong, and we have already seen product tankers starting to perform well on the spot market, affecting other segments and in general resulting an artificial optimism, which is kept alive by owners hyping the market.
Even though tanker owners are keeping their heads high and hoping for the best, tankers have accounted for the highest amount of vessels going for recycling, so far this year with a total of 40 recorded tankers being sold for recycling.
Source: OceanEXL Intelligence
Whether the rates are going to persist is the one million dollar question all tanker owners with vintage tonnage are asking themselves; whether to cash in now while the rates are elevated or to stay steady and await a “potential” upswing in the market.
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