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This year could be more modest for scrapping as charter rates are expected to improve, said cash buyer Global Marketing Systems.
Even though 2012 smashed all historical records on volumes – 56.5M dwt scrapped compared with the previous record year of 1985 that saw 42.6M dwt scrapped – 2013 could not quite repeat those feats.
However, 2013 is still set to outmuscle 1985 quantities to become the second highest year on record with over 43.3M dwt scrapped as of December.
GMS said: “On the other hand, 2014 is expected to be a more modest year, with supply further slowing (owing to increasing charter rates for dry vessels in particular) newbuildings that are continuing to deliver new eco designs that are slowly making competing vessels redundant, and charter rates in certain sectors (containers in particular) remaining better than modest. It is therefore encouraging to see all markets open the year on a positive note, with capacity strong, currencies finally settling down and steel prices steady.”