Dubai - There has been a slow and cautious easing of restrictions in ship recycling sectors across the Indian subcontinent markets as certain yards get back to work in Alang and a few vessels waiting for special permissions in Bangladesh have finally been allowed to beach this week.
However, lockdown measures for India, Bangladesh and Pakistan as a whole, remain in place until May 16th at least – with all flights grounded and restrictions on foreign crew entering the country still in place. In fact, rumors abound in India that the lockdown may likely extend until June. As it stands, due to the ongoing virus scare, nearly 70% of the workforce in Alang has returned to their home towns on specially arranged trains by the Gujarat authorities. So those yards that did begin to cautiously open have been left with a decimated workforce and may as well remain closed at this time.
It therefore remains extremely difficult to solicit any serious offers above USD 300/LDT at present, with most ship recyclers waiting on official reopening permissions on incoming vessels from government authorities, which may likely not be forthcoming for at least a few weeks.Many deals that have missed cancelling dates due to force majeure conditions, have now been recommitted at much lower levels, with Ship Owners and Cash Buyers having to face the harsh realities of a much reduced market due to the pandemic.
The Turkish market too has suffered increasing reversals, with both fundamentals now down, local offerings for vessels dipping towards the USD 150/MT mark and under own power deliveries still restricted.
The coming weeks will be essential for the global community to slowly get back to business and open up economies once again, without letting a second wave of the virus take hold and wreak further destruction on communities that are already struggling with fear, loss and anxiety.