It’s no secret that the dry bulk industry is struggling to turn a profit in the current economic environment, and this is finally starting to translate into higher scrappage rates; good news for the sector which has been plagued by oversupply for several years.
Indeed, according to Deutsche Bank, total dry bulk capacity declined by almost one million tons (net) last week as the pace of delivery slowed and scrapping rates accelerated.
Dry bulk: To the scrap heap
Deutsche estimates that 16 ships were sold for scrap last week, offsetting deliveries of nine new builds.
Assuming the average tonnage per vessel scrapped was 100,000 tons, 1.6 million tons of capacity was removed from the global dry bulk fleet last week.
Newbuilds added 730,000 tons (average...
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