Recycling Market Sees Trickle of Deals

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 are holding on to see if either recycling prices or charter rates improve going into next year.”

Pakistan is acceding to the Hong Kong Convention (HKC) ahead of its entry into force in 2025, and the UAE announcing new rules on vessels bound for demolition. The UAE ruling stated that any vessels calling UAE ports or flying UAE flag, from March 2024 must go for HKC recycling only – stating in rather contradictory language that vessels cannot be beached or ‘landed’, thereby presumably ruling out the sub-continent and Turkey for ship deliveries, says GMS.

Further clarity on the intentions and aims of this ruling will be sought in the weeks ahead before owners and cash buyers begin this next phase of what is sure to be a busy next few years ahead for recycling after an overall slower 2022 and 2023.

For week 50 of 2023, GMS demo rankings / pricing for the week: