In a trend last year used ship buyers from Europe paid much more for used Korean Ships than those of used Chinese Ships. It was primarily owning to Ships built in Chinese Shipyard tends to deteriorate more rapidly than Ships built in Korean Ship yards.
According to leading ship brokering firm based in Central Europe, an 180,000-ton bulk carrier built by Sungdong Shipbuilding & Marine Engineering in 2008 was sold for nearly US$30 million in the last quarter of the 2017, whereas a similar size Bulker built in Chinese Shipyard bulk with more or less of the same age was sold for about US$16 million around same time. If you look at data couple of years back, an 180,000-ton bulk carrier builtin Daehan Shipbuilding in 2010 was sold for US$27 million in 2015 whereas a similar one previously built by a Chinese company was sold at US$19 million two years ago.
No doubt, Shipyards cannot be solely held responsible for rapidly deteriorating condition of the used ship but part of the problem is attributed to poor management and maintenance of the ship.
The other types of used ships had shown similar trend, too. For example, a very large crude carrier (VLCC) supplied by Jinhai Heavy Industry last year was sold at US$60 million in 2017 while a one-year-old VLCC from Hyundai Samho Heavy Industries was sold at a price of US$81 million.
In some cases, older used ships from South Korean shipbuilders are even more expensive. For instance, Hyundai Heavy Industries sold one of its six-year-old VLCCs at US$75 million last year and Dalian Shipyard sold one of its four-year-old VLCCs at US$67.3 million last year.
In the meantime, the Clarkson index related to the prices of used ships recently rebounded to 88 after falling from 157 to 75 between 2010 and late last year. The index, which has the prices of used ships as of January 2000 as its reference value fixed at 100, shows the average price of such ships.
Source: Industry News Network
SINOTECH MARINE is a global marine consulting company providing technical services to shipping industry.