China’s Hosco has sold the largest dry bulk vessel for scrap since the shipping downturn took hold in 2009.
Hosco sold the 1990-built, 280,923 dwt very large ore carrier Hebei Ambition with a total 38,720 ldt to breakers in Chittagong for $480 per ldt, equivalent to $18.6m, a strong price that was well above the ship’s estimated residual worth of $16.1m as reported by online appraiser VesselsValue.
Hosco bought the vessel – then a very large crude carrier – in 2004 and converted it. For the last four years, it was shipping Brazilian iron ore exports, according to Lloyd’s List Intelligence vessel tracking information.
However, for the last month it has been near Telok Ramunia in Malaysia, a hot spot for idling vessels.
A similar price was reportedly paid earlier this month for a George Economou-owned bulk carrier. The 1988-built, 186,000 dwt capesize Dikoni, formerly named Morgiana, was sold to Indian breakers for $485 per ldt, equivalent to $10.4m for the total 21,427 ldt.
By comparison, the value of the ship if sold in the secondhand market for further trading was $11.3m, according to VesselsValue.
Overall, London-headquartered shipbroker Clarksons reports 19 bulk and ore carriers over 100,000 dwt sold for demolition, of which five were built since 1990. This gives a 1987 average build-age for capesizes sold for scrap this year, compared to a 1983 average for overall dry bulk demolition sales.