March 21st, 2019

Capesize Demolition

With the Cape market trading at close to 3 year lows and average TC returns below OPEX levels, it should come as little surprise that there has been a pick up in scrapping in the sector. Year-to-date we have seen 16 Capes and VLOCs sold for demolition, representing 2.94m dwt, already more than was removed in total in 2018. With the demand side struggling, are we going to be reliant on demolitions to keep the market going?

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