Ship Recycling Markets See a Little Action

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. However, the bleeding has seemingly abated and a period of consolidation ahead of Trump’s inauguration on January 20th, 2025 is expected.”

Despite the short-term post U.S. election bounce in both trading and ship recycling markets, until Trump takes office and the incoming administration lays out its Middle Eastern and global policies early next year, no major moves in the shipping markets will be permanent, says GMS.

While the U.S. debt is expected to increase under the Republican run administration and global inflationary pressures will persist into 2025, there is optimism on the state of the trading and recycling markets. “So keep an eye on the extent of the stimulus package that China announces to aid its ailing economy, something that could alleviate concerns around the trade war.”

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