Ship Recycling News

Global market chaos continues post-Thanksgiving, reports cash buyer GMS. “Steel plate prices were the highlight of the entire sub-continent—and even China—where they unanimously retreated in unison this week, while the U.S. Dollar also decided to join in on the fun as it too retreated at all sub-continent locations (except—no surprise—Turkey).“Making matters worse are the rising freight markets that continue to surprise the industry, as the Baltic Exchange’s Dry Index climbed another 3.2% through the course of the week…

Prime Green Recyclers has become the first ship recycling yard in Pakistan to achieve full compliance with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships.Bureau Veritas issued the Statement of Compliance on November 24.Prime Green Recyclers’ certification marks a new stage for Pakistan’s recycling capacity. The country has long been one of the world’s major destinations for end-of-life tonnage, yet it had no yard meeting the Convention’s requirements.

This has been a disastrous week for nearly all the key indicators tracked by cash buyer GMS, says the company, including the state of oil futures, freight rates, local steel plate prices, and disastrous currency devaluations (especially in India).“To start, oil found itself slipping rather shockingly as it fell to USD 57.68/barrel – a total drop of over 6% in the last month and over 16% lower than the same time last year," says GMS. “At the same time, governments in the U.S. continue…

NGO Shipbreaking Platform, in collaboration with Sandbag - Smarter Climate Policy and the University of Tuscia, publishes a report on the role of scrap steel from end-of-life ships in the decarbonization efforts of the European steel industry.Steel is one of the critical elements of Europe’s industrial strategy. To achieve the European Union’s climate targets, the steel industry must rapidly shift from carbon‑intensive blast furnace steelmaking to low‑carbon electric arc furnace technology, which can incorporate high amounts of scrap steel.

Ship recycling market economies face an increasingly precariously future, reports cash buyer GMS.“While the Baltic Exchange Dry Index reported gains once again this week on the back of virtually all inclusive sub-sectors reporting improvements of their own through the week, oil futures on the other hand seem to be taking a beating after levels clocked the week out at USD 59.50/barrel after Ukraine successfully carried out a massive drone attack against Russia’s largest oil refinery located at Novorossiysk. The U.S.

Economic turmoil is causing inflation to keep rising at key ship recycling destinations, says cash buyer GMS. Global steel prices are collapsing, currencies are devaluing, and a disjointed ratio of trading units versus recycling volumes, are all wrapped up in a 2025 burrito of unnecessary bombastic.“As sanctions and bans increasingly strike at the world’s trading units and the balance of the legally trading group seems increasingly burdened with shouldering the load of missing tonnage, which itself cannot even be recycled anywhere, it is certainly starting to show at the waterfront once again.

The Baltic Exchange’s Dry Index declined in October, and the slowdown is increasingly presenting itself via tonnages of various sizes and types across the Indian sub-continent ship recycling landscape, says cash buyer GMS.This is especially the case in India where despite the lowest prices in the region, Alang continues to report an eye-popping number of occasional arrivals. And yet, the glut of tonnage sailing the high seas remains disproportionately ratioed against the number of units recycled over the last several years…

Global markets seemed to take a breather this week as things turned slow across the board once again, not only on the shipping side but even the ship recycling side of things, reports cash buyer GMS.Currencies fluctuated in moderate tandem, local steel plate prices made surprisingly marginal moves, all while the Baltic Exchange Dry Index (BDI) slipped and oil steadied itself. The BDI reported a declining week that shaved off about 3.2% last week, dropping to its lowest levels since early October as the Cape index took the lead shaving off over 6% of its value…

In ship recycling, where even a day can make an incredible difference (the summer of circa 2006 when India lost about USD 100/Ton overnight due to a collapse in steel prices, for example), a week can certainly make a dramatic difference, says cash buyer GMS, especially given the turbulent nature of current times that global markets are enduring.“Going through the checklist of key economic factors affecting the state of global ship recycling today, while the world awaits inflation reports from India and the U.S.

As we enter October, global markets are ready registering spooks across the board, marking a drastic debut into Week 41, reports cash buyer GMS.Inflation climbed in both Turkey and Pakistan through September, likely laying out the groundwork for a spooky October at both locations. Currencies too are back on the “scary charts.” Oil, on the other hand, tripped towards $60 / barrel and is nearly 20% lower than the same time last year as capes, panamax and even supramax indices saw the lower side of last week…

“Global markets seem to be going through quite a disconnect of late as on the one hand, the last couple of months has seen a multitude of directions that stock markets, trading markets, charter rates, financial and FX markets, and even the ship recycling markets have been greeted by versions of unfolding realities that seem to conflict with what’s been transpiring at the bidding tables of late,” says cash buyer GMS.Various reports have been consistently confirming positive movements in dry / trading markets…

After what seemed like months of unstoppable volatility, a modicum of stability seemed to enter the global trading markets this week as oil climbed marginally (0.17%) before the week ended, yet this remains a near 1.4% drop just this month and a 10.8% overall decline from the same time last year, reports cash buyer GMS.“On the flip side, trading markets continue to edge on as they surged another 3.6% this week, but the Baltic Exchange Dry Index reported both Panamax and Supramax indices dipping nearly 2% and 3% respectively…

Escalatory and retaliatory moves kept key trading routes and markets on edge as freight rates propped up this week, with the Baltic Exchange Dry Index reporting a whopping 7.4% overall increase, reports cash buyer GMS.Capesize, Panamax, and Supramax indices all firmed in unison to the tune of 1.0%, 0.4%, and 0.5% respectively. As trading rates jumped, so did crude oil—albeit marginally—ending the week at USD 62.74/barrel (vs. USD 62.14/barrel at the start of the week).“Mixed in…

The Indian sub-continent ship recycling markets continues its southward trajectory with every passing week as the final quarter of the year gradually approaches, reports cash buyer GMS.“Ongoing currency woes (especially those recently spiraling out of control in India), tariff shocks across the sub-continent, faltering steel dynamics, suffocated offerings on the back of a now sagging demand have come together to drag sentiment decisively into terminally negative territory.”The Baltic Dry Index edged modestly higher to end the week at 1…

As August winds down, global markets gave us another week of shy half-gestures and newlywed hesitant moves, says cash buyer GMS, all while confidently pretending they were marching somewhere important.“Oil traders kept one eye on inventories, the other on geopolitics, and both cockeyed on the clock as WTI closed at USD 64/barrel with Brent just above USD 68—moves so small they looked like rounding errors. Yet the steady draw of about 3 million barrels from U.S. reserves keeps feeding the illusion of momentum heading into September as U.S.

“As the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention) enters into force we have updated our estimate for the ship recycling potential over the next 10 years. We now estimate the potential to be 16,000 ships, or 700m deadweight tonnes (DWT), from previously 15,000. The new estimate equals twice the number of ships, and nearly triple the DWT, recycled over the last 10 years and highlights the need for investments in compliant recycling facilities…

An agreement between Höegh Autoliners and green industry pioneer Nordic Circles launches a national project that will change the handling of decommissioned ships. Using Norwegian technology, labor, and industry, old ships will be upcycled in Norway into certified building materials—without melting, without export, and with up to 97% lower emissions.Nordic Circles and Höegh Autoliners are announcing the agreement on the Blue Talks stage at Nor-Shipping, in front of maritime leaders from around the world…

“Between January and April 2025, dry bulk ship recycling has fallen 24% y/y, reaching a 17-year low despite a 35% y/y drop in the Baltic Dry Index (BDI). While weaker freight rates typically encourage the recycling of older and less profitable ships, high uncertainty over the demand outlook could be delaying recycling decisions,” says Filipe Gouveia, Shipping Analysis Manager at BIMCO.Dry bulk ship recycling has been slow since the first quarter of 2021 when freight rates significantly strengthened due to a pickup in demand and congestion.

A dispute between state-run oil company Petrobras and steelmaker Gerdau will delay the first dismantling of an oil production vessel in Brazil by at least a year, people familiar with the matter said, in a setback for local shipyards.The operation had been hailed as a chance to reinvent Brazil's struggling shipbuilders as industrial recyclers, generating jobs as Petrobras plans to spend $9.9 billion in the next five years to retire another 10 ships of the same kind.The 45,000 ton production…

Fincantieri and Hera Group have established CircularYard, a new company aimed at developing an innovative integrated waste management system in Fincantieri's eight Italian shipyards with an approach based on the circular economy.The result of a partnership between the multi-utility and the leading global shipbuilding company, the new company aims to oversee and improve the entire waste management process at all Fincantieri shipyards in Italy and, in the future, abroad.Almost $13.4…

Nippon Yusen Kabushiki Kaisha (NYK) and Oono Development Co., Ltd. agreed to jointly study the commercialization of ship recycling, in which ships and large offshore structures are dismantled in Japan and recycled as steel scrap and other materials. The memorandum of understanding (MoU) was signed on September 18 at NYK's head office. Ship dismantling work will be performed at Japan’s only dry dock which can handle large ocean-going vessels and is owned by Oono Development in Chita City, Aichi Prefecture.

“Between January and August 2024, the number of recycled ships has dropped 42% y/y, the second lowest level in 16 years. The market has seen high freight rates and strong demand, delaying the recycling of older ships. On the supply side, the fleet has continued to grow slowly, limiting fleet renewal,” says Filipe Gouveia, Shipping Analyst at BIMCO.So far this year, only 45 ships have been recycled, adding up to 2.5 million deadweight tonnes (DWT) or 0.2% of the fleet. Recycling declined in all segments…

Washington State Ferries announced it has sold a pair of retired vessels for recycling in Ecuador.Sold for $100,000 apiece, the ferries Elwha and Klahowya have been acquired by Nelson Armas, who has gained approval from the U.S. Department of Transportation Maritime Administration (MARAD) to transport the out-of-service vessels by tow for recycling at a steel mill facility in Ecuador.WSF described the facility as "clean" and "green" and noted that both retired ferries are certified to be free of hazardous materials.A Western Towboat Co.