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Wednesday, April 17, 2024
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Shipbreaking News

14 Apr 2024

Ship Recycling Resurgence Greater Than Expected

Source: GMS

Indian sub-continent ship recycling markets enjoyed a greater than expected degree of a post-Ramadan resurgence, reports cash buyer GMS.“Vessel prices across the various destinations seemed to have concurrently enjoyed varying degrees of an uptick this week on the back of which some eye-opening sales were seemingly concluded into the various sub-continent locations.”However, this firming is certainly surprising, given that recycling destination currencies suffered through their own versions of volatility against the U.S.

07 Apr 2024

A Few Surprise Sales This Week in Ship Recycling

Source: GMS

Ship recycling has again been quiet across the ship recycling globe, reports cash buyer GMS.“Moreover, as an increasing number of vessels past beached have been nearly recycled, and barely any meaningful arrivals have been reported at the respective waterfronts (zero in India this week), frustrated industry players are just … going with the depressive flow,” states GMS.“With that being said and reportedly this week, amidst a sea of floating oldies several high-priced sales were surprisingly confirmed to the various markets (essentially Bangladesh and Pakistan)…

04 Apr 2024

Demand Shocks Drive Ship Recycling to Lowest Level in 20 Years

Source: BIMCO

Over the past eight quarters, ship recycling of bulkers, tankers and container ships has dropped to the lowest level in 20 years. “A combination of strong demand following a series of market shocks and low orderbooks have kept older ships operating for longer than usual,” says Filipe Gouveia, Shipping Analyst at BIMCO.During the first quarter of 2024, only two million deadweight tonnes (DWT) ship capacity were recycled. This marks the ninth consecutive quarter with recycling levels below three million DWT.

01 Apr 2024

Ship Recycling Markets Slightly Busier

The week concluded surprisingly for sub-continent ship recycling nations which were busier (from an LDT perspective) than recent weeks, reports cash buyer GMS.“This left local recyclers scrambling to get their respective shares of the odd unit in, and that too at ever-competitive rates. As such, the dearth of vessels currently available for a recycling sale will certainly ensure that any mis-directed dreams of discounted deals at this juncture of the year, are likely to remain just that…i.e.

24 Mar 2024

Scarcity of Ship Recycling Tonnage Continues

Source: GMS

Despite the occasional smaller LDT candidate popping up for sale over recent weeks, there regrettably remains the ongoing scarcity of tonnage that is simply unable to fill the most basic of demands at the major ship-recycling destinations, reports cash buyer GMS.“As plots across Indian sub-continent markets gradually recycle through their respective shares of vessel deliveries through the first quarter of 2024, both Bangladeshi and Pakistani markets remain well-positioned despite the onset of the traditionally quieter month of Ramadan…

18 Mar 2024

Bangladesh and Pakistan Ship Recycling Markets Remain Steady

Source: GMS

With the conclusion of week 11, the ongoing and seemingly endless dearth in the supply of viable candidates has been mercifully keeping the Bangladeshi and Pakistani ship recycling markets steady, reports cash buyer GMS.“On the other hand, the Turkish and Indian markets continue to endure their respective shares of a notably trying time, given that the Turkish Lira continues to plummet even amidst a mercifully quieter week (on account of Ramadan).”GMS says: “India continues to endure its share of nerve-racking volatility in local steel plate prices as well as the Indian Rupee…

10 Mar 2024

Sleepy Week for Ship Recyclers

Source: GMS

Even though the Indian sub-continent ship recycling markets have taken on a collection of smaller vessels of late, the week remains “sleepy” says cash buyer GMS.Virtually no deals have been concluded, and this has put the squeeze on the global ship recycling sector.“Dry bulk charter rates have been pushing on by the week as ship owners monetize the most from this sector. Containers and tankers too remain oddly off the recycling buffet, and this in turn is driving the ongoing dearth of viable candidates into overdrive…

03 Mar 2024

Recycling Market Still Deprived of Tonnage

Source: GMS

As freight markets push further on, global ship recycling markets remain deprived of tonnage, making it an increasingly suffocating environment for ship recyclers to operate in, reports cash buyer GMS.Bangladesh and Pakistan rely heavily on imported ship’s steel, not only for domestic / large-scale infrastructure projects, but also for its comparatively ‘healthier’ and ‘rust-free’ condition than other forms of imported scrap metal / steel (HMS 1, HMS 2, shredded steel, etc.)Therefore…

25 Feb 2024

Ship Recycling Market Faces Tonnage Shortage

Source: GMS

Global ship recycling markets are now being exclusively driven by the relentless and futile shortage of tonnage that is expected to continue until Spring (at the very least), says cash buyer GMS.“The much-anticipated rebound in global recycling volumes that so many in our industry had been waiting (hoping) for before the turn of the year, has unfortunately failed to materialize.”Markets in Turkey and India remain well off the competitive pace, so Pakistan and Bangladesh remain are leading the market despite the continued drop in supply of vessels.

18 Feb 2024

GMS: Ship Recycling Market Still Slow

Source: GMS

Despite Chinese new year holidays concluding on Friday, a pervading theme of an unrelenting dearth in the overall availability of tonnage across global ship recycling markets has been enduring for several quarters now, says cash buyer, GMS.This has resulted in another dreary week of market inactivity and silence across all recycling destinations.Charter rates continue to remain artificially elevated (especially) in the dry bulk sector, consequently placing a tighter squeeze on the overall supply of vessels for recycling.

15 Feb 2024

Call for IMO to Resolve Inconsistencies in Ship Recycling Conventions

© saintmichel85 / Adobe Stock

BIMCO, Bangladesh, India, Norway, Pakistan and the ICS have submitted a paper ahead of the 81st Marine Environment Protection Committee (MEPC) meeting on March 18-22 that highlights the need to resolve possible conflicts between the Hong Kong Convention and the Basel Convention.The Hong Kong Convention will enter into force on June 26, 2025, and the co-signatories of the paper ask for clarification and assurance that shipowners and parties operating in compliance with the Hong…

11 Feb 2024

Subcontinent Ship Recycling Market Remarkably Quiet

Source: GMS

Despite the Pakistani & Bangladeshi markets stabilizing and displaying a far greater aggression at the bidding tables over the last five weeks, it has been a remarkably quieter start to 2024 for ship recycling than many had anticipated, says cash buyer GMS.With Houthi attacks, trading markets have remained unseasonably firmer, thereby delaying the historical ‘post-New Year aggression’ from the sub-continent ship recycling markets that the industry has become accustomed to over…

03 Feb 2024

Ship Recycling Market Impacted by Middle East Situation

Source: GMS

Bangladeshi and Pakistani markets have been making noticeable improvements over recent weeks, but there remains an ongoing shortage in the global availability of ‘market’ tonnage for ship recycling, reports cash buyer GMS.As evident from the number of arrivals and beachings this week, an increasing number of ship recyclers have clearly managed to and are reportedly still in the process of obtaining further approvals on L/Cs from their respective banks. “As a result, there is now a noticeable disparity in offers emanating from recyclers from the same sub-continent destination…

23 Jan 2024

Two Workers Killed at Gadani Shipbreaking Yard

© saintmichel85 / Adobe Stock

NGO Shipbreaking Platform reports that on January 16 two workers lost their lives after being crushed by a heavy iron plate during the dismantling of bulk carrier Chatherine Bright at Dewan Shipbreaking PVT Ldt in Gadani, Pakistan.The vessel was linked to Oman-based Maritime International Transport & Trading and flagged Panama when it was beached, says the Platform.The National Trade Union Federation (NTUF) accuses authorities of negligence as there continues to be a lack of compliance…

21 Jan 2024

Ship Recycling: Few Sales Confirmed

Source: GMS

In its Week 3 market report, cash buyer GMS says that even as vessel prices have improved from the lows seen towards the end of 2023 and plate prices made a massive jump in Bangladesh over the last couple of weeks, only a trickle of sales have been confirmed into the recycling markets in 2024 thus far.“There also seems a reluctance from ship owners to bite at current offers in the low USD 500s/LDT, having seen levels around USD 100/LDT higher only a couple of quarters ago. Mercifully…

14 Jan 2024

Uncertainty Reins in Ship Recycling Market

Source: GMS

Anxiety and uncertainty reign across the shipowning community at large, especially for those with units trading in, or simply passing through the shipping lanes that are currently besieged by Houthi Rebel attacks in the Red Sea, says cash buyer GMS. This is invariably resulting in many owners avoiding the Suez Canal altogether, electing instead to sail around the Cape and subsequently increase voyage times, costs, and inadvertently assist global inflation.On the ship recycling front…

07 Jan 2024

Signs of Recovery for Ship Recyclers in 2024

Source: GMS

After what has been an overall miserable 2023 in the ship-recycling industry and even worse six-month tail end, 2024 seems to be off with just a little more hope and a chance at recovery as positive signs seem to permeate through the markets, says cash buyer GMS.Critical factors such as declining currency values (except in India), flatlining / declining local steel plate prices, and the dreadful (and ongoing) lack of funding on fresh acquisitions (in Bangladesh and Pakistan), all came together over the course of the summer / monsoon months of 2023.

30 Dec 2023

Mixed Feelings in Ship Recycling Market

Source: GMS

Cash buyer GMS reports that the international ship recycling community is finishing the year with mixed feelings.“On the one hand, we have seen comparatively more deals concluded in 2023 than we did in 2022, with 2022 being the weakest of years over the last decade (in terms of the volume of vessels recycled in a single year).

22 Dec 2023

Sub-Continent Recyclers Hope for Better 2024

Source: GMS

As we enter the last week of 2023, sub-continent markets struggle on, says cash buyer GMS, going the final furlong to round out what has been an overall disappointing year for pricing and volumes.Prices have collapsed from over $600/LDT to below $500/LDT over certain stages this year, seeing around $150/LDT wiped from residual values in a shock for owners and cash buyers alike.“Now that currencies and steel prices seem to have stabilized across the board for the time being, many will be hoping for a more bullish 2024, particularly as the supply of tonnage is set to increase – from both the dry

17 Dec 2023

Recycling Market Sees Trickle of Deals

Source: GMS

It is clear that sub-continent ship recycling markets are not going to have the bumper conclusion to 2023 that many had been hoping for, reports cash buyer GMS.“Instead, only a trickle of deals are being done to muted markets, as demand and sentiments continue to struggle for another week,” says GMS. “There was one further container deal done, amidst a last quarter flurry, but dry bulk supply has stalled as trading markets have enjoyed an unexpected spike, and it seems many owners…

11 Dec 2023

Ship Recycling Market Remains Slumped

Source: GMS

The lackluster end to the year in subcontinent recycling markets continues for another week as disappointed owners and cash buyers face selling their inventory into markets where prices have slumped, reports cash buyer GMS.Several dry bulk sales were below USD 500/LT LDT into India in the lowest confirmed deals for several months.Steel prices have declined in India by almost 10% in a shock to many, particularly as international steel prices have pushed on to an impressive extent over the last month.

05 Dec 2023

Ship Recycling Markets Continue to Struggle

Source: GMS

Ship recycling markets continue to struggle going into the final weeks of the year, reports cash buyer GMS. There has been very little activity or new sales to report, with most end users abstaining from buying and rather wishing to wait and watch developments.Contrary to many expectations, India has lost around 3,000 rupees ($35/LDT) from steel prices.Pakistan was buoyed by the news that their country will sign up to the Hong Kong Convention – which will enter into force from 2025…

04 Dec 2023

Pakistan Becomes Party to Hong Kong Convention

Source: IMO

Pakistan has become a Party to the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, 2009 (Hong Kong Convention).Vice Admiral (Retd.) Iftikhar Ahmad Rao, Maritime Minister and Special Assistant to the Prime Minister (SAPM) on Maritime Affairs, Pakistan, deposited the instrument of accession with IMO Secretary-General Kitack Lim at IMO Headquarters in London on November 30.The deposit follows an IMO-run national seminar in Karachi to…