Shipbreaking News

This week’s news was abuzz surrounding the two OFAC sanctioned VLCCs that recently arrived OPL Chattogram and are now stuck after undoubtedly risky transactions that have resulted in several failed onward resales, reports cash buyer GMS.Both vessels have yet to receive their respective No Objection Certificates (NOCs) to permit their entry into port limits for recycling. As the Artemis III and Itagua remain stranded, as the Bangladesh Ship Breakers and Recyclers Association (BSBRA)…

After what has certainly been a hectic January of negotiations and a late February / early March of unending deliveries with nearly 200K of LDT delivered in recent weeks, a period of calm reflection descended across Indian sub-continent ship recycling markets, reports cash buyer GMS, with an alarmingly minimal number of deals being fixed over recent weeks including this one.“And ever since prices have been at and even well under the now chased after USD 450s/LDT across the board (as confirmed via last week’s logger sale into Bangladesh)…

Charter rates continue to climb as dry bulk carriers, Capes and even Panamax sectors reported rising rates this week, reports cash buyer GMS.

A recent and ongoing uptick in freight rates across many sectors (especially dry, as wet rates have been performing far admirably in comparison) has resumed depriving global ship recycling markets of tonnage over the last couple of weeks, reports cash buyer GMS.“This has promptly manifested itself at the various sub-continent waterfronts this week in both India and even Pakistan that has now returned to an empty port position once again, resulting in a quieter time of late.”Even…

The effects of the US 25% tariffs announced on Chinese steel and aluminum products is already seeing destabilizing effects on ship recycling markets, says cash buyer GMS.“It remains unsure as to where much of this surplus / excess and resultingly cheaper steel will end up, devastating ship recycling prices.”Compounding market uncertainties have taken center stage, says GMS, with President Trump’s “uncalculated tariff wars sending economies rocking this week, unintentionally targeting the U.S.

The “raging fires of tariffs and counter-tariffs” that continue to suppress recycling vessel prices are creating a path for falling prices in the first, and possibly second, quarter of 2025, reports cash buyer GMS.“Some of the seriously older tonnage that has gotten an extension on their expiration dates via global events and wars that saw charter rates soar through the skies across 2023 and especially 2024, only subjected the ship recycling industry to one of the lowest volumes…

Despite a frantic start to 2025 that saw a marked return of recycling tonnage at the bidding tables, sale and purchase activity across the global ship recycling spectrum eased further this week as Chinese New Year holidays descended upon the world, says cash buyer GMS.“It is the Year of the Snake, and it is indeed expected to be a far busier one than the preceding years, with record low volumes of supply and an ensuing inertia that eventually led to the shuttering of yards across the major global ship recycling destinations in 2024.”Should supply become unsustainable…

As threats of trade wars loom, global shipping already seems to be reacting in kind with the Baltic Dry Exchange falling to its lowest since February 2023, says cash buyer GMS. This marks a clear shift towards easing freight rates as a gradually increasing number of over-aged assets have been making their way towards the bidding tables since the start of 2025.“Incoming Chinese New Year holidays has predictably seen an accelerated purging of older assets from Far Eastern waters including all those coming off charter amidst declining rates.

Nearly all recycling nation currencies reported dips this week, reports cash buyer GMS, with the Bangladeshi Taka taking the largest slice of the week’s depreciation pie.Even the Baltic Shipping Index has been reporting an overall downward trend in nearly all sectors, which has caused dry bulk markets to close another week with a near 6% decline.“As forecasted in weeks prior and based on the trajectory of charter rates through the tail end of 2024 and even thus far in 2025, ship recycling markets should continue to enjoy a healthier Q1 of vessel introductions…

The recycling traffic in both India and Bangladesh continued to surprise and impress (especially in India), in week 2 of 2025, reports cash buyer GMS.“The pre-existing state of global economies also continues to persist in the wake of the unfolding present as the U.S. Dollar continues to hammer recycling nation currencies marking noteworthy increases by the week,” says GMS.The steel prices affecting the ship recycling markets, including domestic levels, saw a weakening this week, with China leading the way in declining / cheaper steel that remains globally available.

2025 seems to have started on an optimistic note in the ship recycling markets, with a noticeable willingness to buy from various buyers across the Indian sub-continent, reports cash buyer GMS.However, although the turn of the year seems to be bringing in a sprinkle of optimism, there remains little to be cheery about as key economic factors affecting the various ship recycling locations continue to wobble as a result of geopolitical turmoil and China’s economic fragility.“News…

As a year of economic turmoil winds down on a quiet note, the world anticipates a 2025 that is bearing all the signs of a comparatively busier period across all sectors, says cash buyer GMS.The supply of tonnage has seen a year of record low recycling volumes, and yards are certainly yearning for busier days ahead, as freight markets increasingly start to divert more candidates for recycling, after a year of glorious charter rates across all sectors.Recycling prices have declined over the course of the year, from a high of USD 600/LDT during Q1, down to USD 450s/LDT come Q4 2025.

The Baltic Exchange’s main sea freight index eased for the fourth straight session on Friday, falling close to 0.5%, its lowest since July 2023. “This has certainly assisted the ship recycling sector with the supply of tonnage of late, fueling its survival into early 2025,” says cash buyer GMS.“As we stand on the edge of the final weeks of 2024, compared to the rest of the year, it certainly seems as though there has been more of an uptick in the markets of late, in addition to a far more positive conclusion for ship the recycling sector in the Indian sub-continent…

The Baltic Exchange Sea Freight Index cooled its seven-day losing streak on Friday, bouncing back about 0.5%, and propelled primarily by larger sized vessels. Translation? “The ensuing performance of the Baltic Exchange Dry Index has, and should see a general increase in the supply of mid-sized (and smaller) dry (and even the occasional wet) units being offered into the ship recycling markets, as evident from both Bangladeshi and Indian port reports over recent weeks,” says cash buyer GPS.For ship recycling…

Cash buyer GMS notes that despite incoming president Trump’s announcement of applying sweeping tariffs to the tune of 25% on China, Mexico and Canada, the U.S. economy continues to firm as U.S. inflation drops to (globally) fantastic levels and the US Dollar strengthens against nearly all ship recycling nation currencies this week.The news of the ceasefire between Israel and Hezbollah ceasefire eased tensions around trade routes, and a healthy number of already beach-worthy yet still employed ladies finally make their appearances at the various ship recycling waterfronts…

As global ship recycling markets head into the final month of the year on a comparatively firmer footing and a 2024 full of minimal sales and activity wraps up, cash buyer GMS says that noteworthy declines in prices have seen nearly USD 150/LDT wiped from sub-continent ship recycling levels.“Q1 2025 doesn’t seem as though it is ready to greet the ship recycling industry with its customary January / Q1 vigor,” says GMS. “In fact, if things continue the way they are with the Nuclear Clock ticking ever closer to midnight…

As the effects of Donald Trump’s victory continues to reverberate globally, the U.S. economy continues to strengthen on the news that the country is opening up offshore drilling in order to further reduce American dependence on foreign oil, reports cash buyer GMS.“As the U.S. economy continues to strengthen and the U.S. Dollar firms against nearly all recycling destination currencies (including China, where Chinese stocks recorded rallies this week), local steel plate falls from…

BIMCO has launched a Ship Recycling Alliance to help accelerate safe and environmentally sound recycling of ships. The alliance will co-ordinate the voices of the ship recycling industry and the shipping industry and help facilitate the global implementation of the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC).The HKC will enter into force in June 2025. This comes at a time when more than 15,000 ships are estimated to be recycled over the next 10 years and the need for compliant yards from main recycling states such as India…

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 taking place below USD 500/LDT on nearly all vessels and into all markets.Bangladesh…

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 vessels below the commensurate USD 500/LDT mark.Geopolitical events have been to blame for much of the trauma across the ship recycling markets this year.

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. Post-monsoon…

This week has seen about USD 10/LDT gained across the board in ship recycling markets, says cash buyer GMS, and Bangladesh has leapfrogged India for pole position including the purchases of two Panamax bulk carriers in the USD 470s/LDT.“Although the general feeling is that sub-continent ship recycling markets have likely bottomed out, there remains cautious optimism within the community as we head towards 2025. We aren’t suggesting that markets will hit or even exceed the ever-coveted USD 500/LDT mark before Q1 2025.

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. “Fundamentals, though, continue…