29 May 2020
Source: GMS Leadership
India’s plight deteriorated even further this week, with all vessels now being greeted with offers well below USD 300/LDT (for the first time since 2015). As such, many owners with HKC green vessels to sell have decided to temporize their sales or withdraw their units altogether, rather than sell for such risible rates. In the meantime, all other vessels are being diverted to the far more bullish Bangladeshi and Pakistani markets.
Indeed, recently passed budgets in both Pakistan and Bangladesh turned out to be favorable to both markets, with no changes announced in Bangladesh and some economically viable reductions in income taxes and customs duties in Pakistan, resulting in some positive sentiments and renewed buying interest.
As such, vessels previously considered and/or sold for the favorably positioned Indian market have since been swiftly diverted, either to Bangladesh or Pakistan, by various Ship Owners and Cash Buyers.