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GMS News
Times are Bleak for Ship Recyclers
As oil and even the overall Baltic Exchange’s main sea index fell further this week (about 1.6%), the increasing supply in tonnage is regrettably being met by further disappointment as ship recycling prices fell across the board and have remained subdued through the week, reports cash buyer GMS.Any sales that are being concluded are at numbers now dropping towards the mid USD 400s/LDT, with some facing even lower indications due to their poorer overall condition.
Ship Recycling Market Hopeful as Baltic Index Drops
There seems to be positivity in the ship recycling market as the Baltic Index’s main Sea Freight Index fell for its ninth consecutive week this week, dropping to its lowest levels of the year, reports cash buyer GMS.“In essence, this decline especially affects older trading fleets, which in turn has seen all recycling markets register imports at their respective waterfronts this week, including a welcome return from Pakistan to the fray,” says GMS.
Ship Recyclers Endure Another Lackluster Week
Weak pricing, damp demand, and dithered sentiments characterized another lackluster week in the ship recycling industry on the Indian sub-continent, reports cash buyer GMS.Sales ground to a virtual halt this week with activity registering at some of the lowest levels witnessed for nearly a decade.As levels declined by over USD 100/LDT since the peaks of 2024, a majority of the marginal sales are reliably…
Ship Recyclers Caught in “Eerie Calm”
Cash buyer GMS reports an eerie calm has descended across tense global economies, including the destitute ship recycling sector.It’s been some time since a regular supply of a decent variety of vessels has been regularly available (likely the worst in a decade), says GMS. Levels have declined by over USD 100/LDT since the peaks of early 2024 and offerings continually retreat, firmly relegating all…
Ship Recycling Market Continues “Dark Year”
For the second running week and on the back of firming Chinese plate prices last week, ship recycling markets felt some positive moves as local plate prices remain on a positive to firm footing across the board, reports cash buyer GMS.However, increasing magnification into local markets proved to be a reality check, says GMS, due to the ongoing lack of tonnage that has been typical of this “dark year” in ship recycling.“After the U.S.
GMS: Some Positive Movement for Ship Recyclers
Cash buyer GMS has seen some positive movement in the sub-continent ship recycling market. “While we do not expect tonnage to come flowing into the markets anytime soon, nor do we expect ship recycling prices to go skywards within this time frame, the ship recycling industry did see some positive movements with improving indications breaking cover from India and even Bangladesh this week.”Several bulker and container ship sales were made as the market firmed.
Ship Recycling Fundamentals Remain Shaky
Global ship recycling fundamentals remain shaky, reports cash buyer GMS, as Indian and Pakistani steel plate prices reported unexpected moves bought on by the 30% tariffs levied on a variety of goods being imported from China.In addition, the U.S. Dollar continues to “belly dance” around the various recycling nation currencies reporting the (comparatively) worst week for the Bangladeshi Taka as the…
Ship Recycling Fundamentals Seesaw
Cash buyer GMS cites the dangerous situations unfolding across the Middle East, Ukraine and South China Sea, when saying that politics, war, and ensuing global financial instability, means that ship recycling markets continue to endure profound challenges as the industry heads towards Q4 2024.“On the financial side, we witnessed a seesawing of fundamentals as on the one hand, likely on the back of news that the U.S. Feds are revising another reduction in interest rates, the U.S.
GMS: Ship Recycling Market Subdued
The ship recycling market has so far been subdued in September, as expected, reports cash buyer GMS.Macro factors affecting the market include the situation in the Middle East, Houthi attacks on passing vessels and tensions caused by the repositioning of navies in response to ISIS fighters targeting U.S. bases.“The start of September saw the industry still witness the inescapable decline that is India’s ship recycling sector today…
Ship Recycling: Vessel Offerings Have Declined
Action in the Middle East, including a repeat Houthi attack on container vessel Groton in the Red Sea, has increased volatility in the region, and the already slim pickings of tonnage for recycling only got worse through August, reports cash buyer GMS.“The desperate question unraveling in everyone’s mind is whether this is expected to be the case through 2024 / early 2025? Interestingly, even though…
Outlook Glum for Ship Recyclers
Shipowners and cash buyers continue to struggle with the ongoing tonnage shortage as sub-continent ship recycling markets continue down their current trajectory, says cash buyer GMS.Negativity is permeating across the industry on the back of a short supply of vessels and global economies that remain shaky.
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…
GMS: Push the Pause Button on Ship Recycling
The Middle East and global ship recycling markets need a serious push on the pause button, says cash buyer GMS, as this week the world has seen:• increasing security bulletins surrounding an imminent Iranian / Hezbollah threat against Israel,• the U.S. repositioning two aircraft carrier / destroyer fleets off the Gulf of Oman & Eastern Mediterranean leaving the entire region on high alert,• PM Sheikh…
Geopolitical Fighting Negatively Impacts Ship Recycling
As Russia's war continues to rage in Ukraine and tensions hit a fever pitch in the Middle East, zooming out of the ship recycling markets, GMS sees geopolitical events taking centerstage across all shipping sectors (trading and recycling) for yet another week, with no end in sight. The mysterious bombing assassination of one of the founding members of Hezbollah in the heart of the Iranian capital city of Tehran early in the week sent shockwaves across the Arab world…
Geopolitical Events Continue to Shape Ship Recycling Market
“We see geopolitical events take center stage across all shipping sectors (trading and recycling) for yet another week,” reports cash buyer GMS. It is expected to continue through Q3 and likely well into Q4.GMS cites events such as the assassination of one of the founding members of Hezbollah in the heart of the Iranian capital city of Tehran, rockets fired into Israel and expected continued attacks…
Lila Global Adds Second MPP Vessel
Lila Global announced it has added a second multipurpose product (MPP) vessel to its fleet.The UAE-based company, a shipowning and operating arm of GMS, said it has acquired the Lila Mombasa, a 30k DWT secondhand vessel with 1,800 TEU container capacity. The 2003-built ship is equipped with removable tweendecks for versatile cargo handling.Lila Mombasa is the second 30k+ DWT MPP in the Lila Global fleet…
Ship Recycling Market Continues to Suffer
Indian sub-continent ship recycling markets remain decidedly dicey as both currencies and local steel plate prices in India and Bangladesh declined even further this week, reports cash buyer GMS.“Vessel prices and demand take on a whole new meaning of industrywide suffering, especially with Turkey and Pakistani ship recycling markets still being remanded at the same resort over recent weeks.”The political…
GMS: Ship Recycling Faces Negative Pressures
The anticipated / ongoing seasonal slowdown in activity coupled with softening vessel prices has clearly started to characterize the year’s summer / monsoon mess across the Indian sub-continent ship recycling markets, reports cash buyer GMS.“However, the 2024 version not only includes the incessant rains and a holiday-time for yard workers, but also ongoing global descent via boots on the ground warfare…
GMS: Ship Recycling Activity Minimal
It has been another tentative time in the global ship recycling markets as overall this week, reports cash buyer GMS, as sale and purchase activity and local arrivals / deliveries reported minimal movements at the various waterfronts.Indian sub-continent ship recyclers are approaching the monsoon season with a ‘wait-&-watch’ mindset prior to committing afresh on tonnage, especially since virtually…
GMS: Vessel Prices Expected to Decline in July
Vessel prices are already down by about USD 20 – USD 25 / LDT, reports cash buyer GMS, as further decline is expected in the first half of July as previously forecast.Shipowners and cash buyers are now chasing down a declining market, and recyclers are facing exacerbating economic challenges. Not only are local steel plate prices in shambles, but currencies are also taking tumbles at key destinations…
