Paul Bartlett | Oct 26, 2021

On the Indian subcontinent, Bangladesh leads the way, with rates above $600 for the three main vessel types, according to the latest report from GMS, the largest cash buyer of end-of-life ships. Several large floating storage units (FSU) are on the market, GMS said, with resale negotiations under way in both Bangladesh and Pakistan.

One such unit, the FSU, EM Longevity, with a light displacement of 46,657, achieved $625/ldt in Bangladesh. The unit is understood previously to have traded as a 306,324dwt VLCC but was converted for floating storage of low sulphur fuel by Equatorial Marine Fuel Management of Singapore.

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Most of the ships on the recycling market continue to be tankers and offshore vessels, GMS noted, as owners hold on to container ships and bulk carriers in today’s buoyant markets. Following a spell during which Indian recyclers lagged behind their competitors elsewhere on the subcontinent, the country’s yards are back in the lead in volume terms, taking most of the tonnage last week, including several Hong Kong Convention sales.

Bangladesh still leads on price, according to GMS. Typical prices on offer from yards there are around $620 for container ships, $610 for tankers, and $600 for bulk carriers. Indicative prices are about $10 lower for the three ship types in Pakistan, with a further reduction of $10 across the board in India. Turkish prices, meanwhile, have climbed to the low $300s, with indicative price levels of $320 for containers, $310 for tankers, and $300 for bulkers.