01 May 2020
Source: GMS Leadership
This week, as lockdowns were once again extended at all subcontinent locations until May 15/16th, the toll on frustrated Ship Owners and Cash Buyers has started to tell.
At present, there is no way to import fresh vessels into any subcontinent location for recycling and there are still a number of vessels at various anchorages that have arrived, but have failed to obtain permissions for boardings and / or beachings.
Most of these vessels have missed cancelling dates between the Owners / Cash Buyers / end Users and are therefore subject to a return of the respective deposit or restructuring a new deal altogether, at whatever price the new market realities of today are. However, what makes matters confusing is that there is no telling where market prices realistically are at, given that a huge spread of numbers has been seen from Recyclers and Cash Buyers who are essentially speculating on a closed market that is presently much lower than it was at the start of the year.