After a few weeks of subdued activity, it seems that the ships’ demolition market has started to be active once again. In its latest weekly report, the world’s leading cash buyer of ships, GMS, said that over the past week, “this week, a few owners and cash buyers finally started to accept the new market reality on prices and several sales were subsequently recorded at previously unthinkable levels (especially those into India). The tanker sector recorded the most exits this week as a couple of LNGs were concluded to Turkish buyers, in addition to two suezmax tankers and one aframax tanker that will be making their way towards Indian shores while Pakistan remains closed to tankers, due to the tragic explosions that took place onboard the FSU and LPG earlier this year. There is still no clarity as to when the Pakistani market might reopen for tankers again and it is certainly going to be the case going forward where all wet units heading for Gadani will have to be gas free for hot works clean with all cargo residues, slops and sludges totally cleaned from all cargo and slop tanks (as has been the requirement from competing Indian and Bangladeshi markets)”, GMS noted.

Meanwhile, according to GMS, “it remains an extremely sensitive issue with the Pakistani government and the Pakistan Ship Breakers Association (PSBA) who are keen to ensure that no further tragic / fatal accidents occur onboard tankers again. Bangladeshi buyers remain largely beset with the recent bad news from their budget and very little activity has consequently taken place there whilst they petition the finance ministry to overturn the exorbitant new taxes / duties recently imposed. Despite the degraded sentiment, one uncharacteristically high priced bulker sale to a clearly bullish end buyer was concluded into Chittagong this week. However, the hope remains that these duties will eventually be overturned, but for the time being, prices remain hamstrung by the looming prospect of USD 40 – USD 50/LT being taxed (and eventually deducted) on fresh / incoming units”, GMS concluded.