29 May 2020
Source: GMS Leadership
As India starts to recede, perhaps fearful of an influx of tonnage, competing markets in Pakistan and Bangladesh are starting to improve once again. Indeed, with favorable budget announcements in both Pakistan and Bangladesh this week, it may perhaps be some time before India starts to compete on non-HKC green tonnage once again.
As such, even though several larger VLOCs and Capes have been committed to Gadani and Chattogram Buyers in and around the high USD 290s – USD 300/LDT levels – despite Cape freight rates shooting up by nearly 20% this week – we do anticipate a slowdown in supply from this particular sector in the near future.
Plenty of containers – both in the smaller and larger categories – continue to be proposed for sale, and there are several Panamax sized units still unsold in Cash Buyer hands being offered into India (as the vessel of choice there) and these are now competing for a dwindling number of increasingly disinterested, lowballing local Recyclers.