Dry bulk demolitions have increased for the third consecutive quarter, with 43 vessels scrapped so far in Q1, the highest quarterly total since Q3 2017.
Despite a month of extremely good timecharter rates, 40% of the ships scrapped so far in Q1 were demolished in March.
Scrap prices have rallied on the back of strong steel prices, which have in turn been supported by steel capacity cuts in some regions, incentivising some owners to scrap their aged vessels.
Capes have seen 16 demolitions so far in Q1 2021, matching their highest quarterly total over the last 5 years, with 11 of the 16 vessels being VLOCs.
The average age of scrapped Supramax ships has declined by 5 years to 26 since the start of 2018, with this vessel-type accounting for 28% of all bulker demolitions over this period. Meanwhile, the average age of Panamaxes heading for scrap has increased by 5 years since 2017, rising to 28 years of age.