DEMO RATES SHOT UP SURPASSING $500 /LDT

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Demo rates have shot up in recent days, surpassing $500 per ldt and seeing many owners have a change of minds about their vintage vessels, reports splash247.

•Best Oasis Weekly Report

“The subcontinent market is on an aggressive buying spree with Bangladesh leading the number game,” cash buyer Best Oasis noted in a weekly report, while rival GMS stated: “We are witnessing the highest priced rates seen across the subcontinent for a number of years, with several sales taking place above USD 500/LT LDT on decent spec units.”

GMS questioned how long the demo spike could last given the volatility experienced in the sector this year.

•Scrap Yards Down

Clarksons Platou urged owners to be quick to secure current rates from starved cash buyers as Ramadan is approaching, which will see many scrap yards down tools next month.

Clarksons Platou reported on the first scrapping of a VLCC this year. The Winson No.5 was sold as is in Singapore for $484 per ldt.

“Perhaps the interest for alternative trades for older VLCC units has slowed,” Clarksons quipped.