Secondhand Vessels and Scrap Prices Surge

In June 2020, a decade year old 4,500 teu Panamax vessel would be worth $9.5 million, however just three weeks ago, those vessels are estimating a worth of about $60 million. 

Clarkson disclosed in its most recent report that the ClarkSea Index had reached its highest level since 2008 because of robust container and dry bulk markets. This is not the case across all markets, with tankers and offshore vessels weak.

There are already tankers making their way to scrap yards in Bangladesh, where breakers are paying more than $600/idt and even more for vessels. According to GMS, the world’s largest cash buyer of end-of-life ships, Indian recyclers have stepped up with Pakistani yards encouraged to do the same as Bangladesh buyers.