Sanctioned VLCCs Remain Stranded Off Bangladesh
Two OFAC-sanctioned VLCCs remain stranded outside Bangladeshi waters with no prospects of a final resting place, reports cash buyer GMS, and this is now seeing cash buyers and ship recyclers being vigilant in their due diligence prior to negotiating on units.
There are reportedly still a few more units in cash buyer hands that are waiting to be introduced for a recycling resale. However, given the fate that the behemoth duo has run into outside Bangladesh, it remains to be seen how these pending and even future dealings with candidates from sanctioned source(s) will eventually transpire, says GMS.
“For now, like 2024, the 2025 tsunami of economic tumult continues to surprise week-after-week with macro fundamentals taking turns to shake up ever-changing sentiments across the board. Oil has started to jitter like the stock markets as despite registering declines through the week (and being low overall), it ended at a ‘higher than last week’ level of USD 69.40/barrel, as oil markets remain cautious on the back of recently announced Iranian and Venezuelan sanctions.
“On the flip side (and rather surprisingly), charter rates declined this week across the dry bulk board as nearly all sectors (Handies, Panamaxes, Capes, and even Supras) registered falls, dragging the overall Baltic Dry Sea Freight Index down this week, which was followed by a minor uptick in recycling enquiries from sellers at the bidding tables.”
Pakistan took in more vessels than India this week, despite a clear overall decline in the number of arrivals and deliveries across the sub-continent board. Steel plate prices played opposite roles in Pakistan and India as while Indian levels recorded an impressive jump, Pakistani levels continue to bleed out as they have declined non-stop over the last month now, all while Bangladeshi and Chinese levels continue to flatline at the bottom of the pool.
Prices in Bangladesh are slightly higher than USD 450/LT LDT on certain select / favored units (such as tankers and container ships) coming in from the Far East and this has left India and Pakistan gravitating towards even smaller geographically positioned units.
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