Ship Recycling Markets on Forced Holiday

Freight sectors are performing unseasonably and unrelentingly well amidst all the unfolding crises that are still choking global ship recycling nations out of life-sustaining tonnage, reports cash buyer GMS.

This includes potential attacks against Israel and brewing news of President Putin possibly being removed due to Ukraine’s successful invasion of “Mother Russia.”

“Consequently, we continue to see world economies trudge silently up this unnecessary hill of economic instability that started with a massive backlog in global trade and drove inflation up since the onset of Covid-19, which was further exacerbated by the attacks on and even sinking of merchant vessels in the Red Sea Lanes. 2024 summer is certainly unfolding into a horror movie where levels across the board remain calamitous due to nervous sentiments, political instability, violently shaky fundamentals across the board and possible war.”

As Cheaper Chinese steel imports cause concerns in India and Pakistan again, further anti-dumping duties are clearly needed to curb cheaper steel imports from undercutting inventories at domestic ship recycling yards, further creating economic hurdles for local ship recyclers, says GMS. “As such, a meagre collection of poorer condition Far Eastern built and owned vessels has been concluded below USD 500/LDT, as the markets take stock of events expected to unfold over these summer months.

“On the local markets front, we see a modicum of stability return to Bangladesh as PM Hasina flees the country and the military temporarily takes charge, India was greeted with a minor yet welcome surprise in fundamentals, Pakistani buyers dropped back down the market rankings again, and Turkey continues to suffer silently, week after week.

“Vessel offers therefore remain tentative and nearly non-existent from certain recyclers who are reevaluating the markets based on unfolding sentiments, domestic fundamentals and global events, before committing firmly on price again. For now, the Middle East and monsoon rains intend to keep the global ship recycling community on a forced holiday.”

For week 33 of 2024, GMS demo rankings / pricings are: