Home / Report / Analysis / Weekly Demolition Reports / GMS Week 25 – DEFT DIVERSIONS!


India’s plight deteriorated even further this week, with all vessels now being greeted with offers well below USD 300/LDT (for the first time since 2015). As such, many owners HKC green vessels to sell have decided to temporize their sales or withdraw their units
altogether, rather than sell for such risible rates. In the meantime, all other vessels are diverted to the far more bullish Bangladeshi and Pakistani markets.

Indeed, recently passed budgets in both Pakistan and Bangladesh turned out to be favorable to both markets, with no changes announced in Bangladesh and some economically viable reductions in income taxes and customs duties in Pakistan, resulting in some positive
sentiments and renewed buying interest.

As such, vessels previously considered and/or sold for the favorably positioned Indian market have since been swiftly diverted, either to Bangladesh or Pakistan, by various Ship Owners and Cash Buyers.

Just when most had considered the worst of the recent decline to be over, it has been an alarming decline in prices and sentiment in India, with levels having settled in and around USD 325/Ton on containers – down by about 100/LDT since the pre-Covid peak.

A recent surge in the supply of vessels (particularly HKC green units in the container and PCTC segments) has started to alarm Alang Recyclers and as a result, many End Users have either booked themselves with tonnage, or are offering increasingly declining numbers on the multiple of vessels on offer. At worse, they are abstaining from the buying altogether, choosing to wait and watch market developments.

For week 25 of 2020, GMS demo rankings / pricing for the week are as below.

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Source: GMS

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