Maran Dry Management, owned by John Angelicoussis, sold two Capesize vessels in the demolition market
Maran Dry Management, the company owned by the renowned Greek shipowner John Angelicoussis, has directed two aged capesize bulk carrier vessels towards the demolition market last week. The first vessel, built in 1999, is 20 years old, and has a cargo carriage capacity of 172.000 deadweight tonnage (dwt). It was built by the Huyndai Heavy Industries and its registered name is Anangel Destiny. The vessel was sold to Singapore’s demolition market, wherein it is expected to be decommissioned in due course and have its metal parts recycled with an approximate value of $9.6 million, or $432 per light displacement ton (ldt). Anangel Destiny’s sister ship, Anangel Dynasty was also sold to the Singaporean demolition market. Anangel Dynasty, built by South Korea’s Huyndai Heavy Industries has a cargo carriage capacity of 171.000 dwt and was sold for a scrap value at $432 per ldt, or $9.5 million.
Conditions of vessel oversupply in the bulk carrier market explain the decision to move aged vessels towards the demolition market. In the shipping world the tonnage of global fleet depicts the supply dimension of the market while the demand dimension is represented by the average price of daily freight rates. The shipping market especially in the bulk carrier industry currently suffers from conditions of vessel oversupply – too many vessels available for too few maritime transportation contracts. This development has driven freight prices downwards. A potential solution to this reality is the demolition market – the decommissioning of aged vessels for scrap value. The demolition market facilitates the replenishment of global tonnage fleet by removing excess tonnage from the market, thus increasing freight rates.
Maran Dry Management appears to have embraced drastic solutions to restore freight rates into acceptable levels. Average freight rates for bulk carrier vessels last week reached approximately $2.220 per day – that is the net daily revenues. However, operating expenses throughout the year 2018 fluctuated around $5.300 per day. These numbers reveal the degree of vessel oversupply conditions in the bulk carrier shipping market and explain why the demolition market appears to be the optimum choice.
Maran Dry Management has four other Very Large Ore Carriers (VLOCs), aged 20 years or more. Each of these VLOCs have cargo carriage capabilities that exceed 245.000 dwt but currently all of them are under maritime transportation contracts. It is unknown what their future will be, even though a forced driving out of the market of these four vessels, will undeniably ameliorate depressed freight rates.