Cape canned

The sale-and-purchase market is awash with rumours that another capesize bulker has been sold for recycling.
Sea Star purchased the Macau Mineral in late 2008 for $25m.

Sea Star purchased the Macau Mineral in late 2008 for $25m.

Market sources claim the 207,800-dwt Macau Mineral (built 1989) commanded $501 per ldt, which amounts to a payday of approximately $12.5m.

According to Fearnleys the vessel, which is controlled by Sea Star Ships of China, will be torched in Bangladesh.

Earlier this week GMS, which bill itself as the world’s largest cash buyer, told clients that the deal included over 1,000 tons of bunker fuel worth roughly $15 per ldt.

Today, Fearnleys published a report in which it said six capes have been sold for scrap thus far this year, which is less than half of the total tallied at this point in time 12 months ago.

Compass Maritime Services, a sale-and-purchase broker based in the US, claims 14 bulkers with carrying capacities in excess of 80,000-dwt have met their maker and says 25 were torched in the comparable stretch of 2013.

Forecasters say activity in the demolition market has been “relatively healthy” and note demolition prices are on the rise but fear the pace is unlikely to pick up anytime soon due to the upcoming monsoon season and widely held expectation that freight rates are poised to pop.

Attempts to reach Sea Star Ships about speculation that the Macau Mineral has been sold for recycling were not immediately successful at the time of writing Wednesday. At last check the vessel was still listed on a fleet profile found on its website, observers say.

The vessel made TradeWinds headlines late last year amid rumours that it had been sold for recycling in China. Today, sources said the $8m deal unravelled as a result of a sharp spike in freight rates that saw a number of owners give ageing capes a stay of execution.