Ship Recycling Industry Expecting Fourth Quarter Boost

Despite the impending onset of various holidays at ship recycling destinations, India is poised to give sub-continent markets a boost as the industry heads into the fourth quarter.

“While Indian aggression may ease up a touch as Diwali holidays descend, it is expected that Pakistan, and perhaps even a decidedly lackluster Bangladesh, may eventually step up in the weeks and perhaps even the final few months leading into 2024, helping secure any of the remaining unsold tonnage, or fresh ones that may hit the market down the line,” reports cash buyer GMS.

A recently resurgent Pakistani market has unexpectedly declined over the last couple of weeks as the few buyers that were able to obtain finance, booked various vessels, mostly Panamax bulkers, and filled their plots quickly.

Bangladesh is likely to remain out of the buying for now, says GMS, while they continue to insist on presenting unworkable numbers below USD 500/LDT and while competing markets are unequivocally offering higher and faring far better.

The supply of container ships remains strong as some raucous pricing from Alang has meant that owners have been able to sell their vessels close to, or in some cases above, USD 600/LDT.

Dry bulk charter rates have improved slightly over recent months, but the supply of 90s-built and older vessels should become strong towards the end of the year and well into 2024, says GMS.

For week 39 of 2023, GMS demo rankings / pricing for the week are: