The Capesize demolition market is off to its busiest start ever in 2015 amid some of the lowest dry bulk freight rates in the last three decades.
According to the world’s largest shipowner association BIMCO, during the first four months of 2015 a total of 52 Capesizes with a total DWT of around 8.7 million have been sold for demolition. Bimco points out that with those numbers the market is well on its way to break the 2012 record where a total of 70 Capesize ships were scrapped.
Chief Shipping Analyst at BIMCO, Peter Sand, Says: “The high amount of Capesize demolition will benefit the segment. Although increasing scrapping was expected the actual development exceeded BIMCOs expectations. This could have a positive impact on the market.”
Credit: BIMCO
The demolition of Panamax ships has also been on the rise in 2015 and although the development is not quite on par with the Capesizes it is still substantial, Bimco notes. In 2015 as much as 2.6 million DWT has already been sold for demolition equaling more than half of last year’s total where 4.8 million DWT were scrapped.
For Handymax and Handysize demolition has also increased in 2015. For Handymax just over 1 million DWT of tonnage has been scrapped so far in 2015, 34 % more than the same period last year, according to Bimco. For Handysize the numbers are 2.2 million DWT so far, up 79% from last year, Bimco says.
The dry bulk market has long suffered from weak freight rates stemming from falling demand and an oversupply of ships, so the increased demolition of capesizes in particular comes at much needed time for the market.
But it’s not all good news.
Bimco notes that despite worsening freight market conditions, the demolition of dry bulk tonnage has not been adapting fully to this trend as could be expected, at least until now. During 2014 bulk carriers equaling 16 million dead weight tons (DWT) were sold for demolition, down from more than 23 million DWT in 2013, according to Bimco.
Bimco also points out that scrap prices are under pressure from a general diminishing demand for steel in addition to cheap steel coming out of China. With low scrap prices, currently around USD 370 per light displacement ton (LDT) owners are more reluctant to let go of their ships despite being pressured from poor freight market conditions.
However, data from the first four months of 2015 shows that more owners are scrapping their ships than ever before.
Israel and Iran appeared to be honoring a ceasefire agreement unexpectedly announced by US President Donald Trump overnight, after the American leader reacted angrily to early breaches of the deal by both sides.
U.S. strikes on several Iranian nuclear sites represent a meaningful escalation of the Middle East conflict that could lead Tehran to disrupt vital exports of oil and gas from the region, sparking a surge in energy prices. But history tells us that any disruption would likely be short-lived.
Sellers of Iranian oil to China are offering deeper discounts this month as they look to reduce inventories and as independent refiners slow their buying due to a jump in crude prices, traders and analysts said.
June 20, 2025
Total Views: 993
Get The Industry’s Go-To News
Subscribe to gCaptain Daily and stay informed with the latest global maritime and offshore news
— just like 109,349 professionals
Secure Your Spot
on the gCaptain Crew
Stay informed with the latest maritime and offshore news, delivered daily straight to your inbox
— trusted by our 109,349 members
Your Gateway to the Maritime World!
Essential news coupled with the finest maritime content sourced from across the globe.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.