Shipbreaking News

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…

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.

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…

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…

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.

VesselsValue has released its Q4 2024 Market Outlook indicating a forecast period up to 2027 which suggests a mixed outlook across different vessel types.The company anticipates that orders for bulkers and tankers will gain momentum, while demand for containers and LNG/LPG vessels will decline. Despite the expected rise in bulker and tanker orders, the overall orderbook will likely shrink due to a surge in deliveries for container and gas vessels.Geopolitical tensions, such as the Houthi attacks in the Bab Al Mandeb Strait, are creating both risks and opportunities for shipping.

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. Fed rate cut of 0.5% on interest rates a couple of weeks back and global currencies took a moment to adjust…

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.

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 interim government continues struggling to control the currency since May.“The…

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…

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.

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, one that continues to show no signs of it slowing since early June,” says GMS.

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 we have seen sub-continent ship recycling nations take independent measures to curtail the devastating state of economic affairs…

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.

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…

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 Hassina abruptly resign as Prime Minister of Bangladesh and fled to India in a government helicopter…