According to data compiled by Drewry Shipping, ship demolitions rallied during the last 2 months of 2008, especially when it comes to dry bulk carriers. A total of 4 million DWT of bulkers were sold for scrap, out of which 2 million DWT occurred in November and 1.34 million DWT in December.

According to DNV, the volume of tonnage sent for recycling in only the first month of 2009 was more than 40% of the total recycled in the whole of 2006. About 125 vessels from the international shores are lined up at India’s Alang ship breaking yards as against 40 vessels in the whole of last year.

Mr Vishnu Gupta president of Alang Ship Breaking Industry Association said that recovery of steel scrap this year was estimated almost double at about 1.2 million tonnes. He added that "However, breaking charges have fallen to USD 250 to USD 300 a tonne from USD 600 a tonne last year."

According to figures compiled by George Moundreas & Co, the average weekly volumes of dry bulk tonnage that left the market during the last week of 2008 for scrap was increased at 600,000 DWT versus 400,000 to 500,000 DWT during the weeks before. Further to that, the broker reports that negotiations are currently taking place for the scrapping of at least 157 vessels with a capacity of a stunning 5.5 million DWT.

GMS, in its latest report, said that "With the unending increase in the supply and variety of tonnage in the market, recyclers continue to be very selective about what they buy and at what price. As a result, Cash Buyers are having a hard time getting competitive prices for smaller ships. On the other hand, a well maintained Panamax or larger vessel tends to generate a significantly stronger interest."

(Sourced from www.hellenicshippingnews.com)