Ship Recycling Activity Increasing as Shipping Rates Collapse
Strategic Research Institute
Published on :
6 Sep, 2022, 6:12 am
World's leading cash buyer of ships for recycling GMS said that “Activity and availability of sales candidates seem to be finally starting to increase as we enter the month of September and the fourth quarter of the year. Dry bulk and particularly Capesize bulker rates have declined noticeably of late, and this is seeing an increasing number of enquiries on dry units starting to come forth for a potential sale for recycling. This increase couldn’t have come at a better time as local demand for tonnage has been gradually ramping up again, after an extremely quiet summer & flooded monsoon. Of course, after the collapse of the Sri Lankan economy earlier this year, difficulties persists in the sub-continent markets as both Pakistan and Bangladesh has been teetering perilously close to the brink as well.”
GMS said “Pakistan has been beset by catastrophic flooding over the past week, with thousands of people losing their lives and millions displaced. In fact, some international media have been reporting that nearly one-third of the country is currently underwater. As such, calls for urgent humanitarian aid have reached the international community this week, with the situation becoming increasingly dire.”
GMS also said “Bangladesh is still struggling with LCs with any transaction valued at over USD 2-3 million needing Central bank approval, which is ensuring that most large LDT, higher value candidates, are being diverted to competing markets and even the lower placed India, as Cash Buyers and Ship Owners both do not want to run the risk of getting stuck there, especially when levels have already fallen so much.”
GMS added “India remains the most resilient market and is now becoming the go to destination, albeit at lower prices, for ship-owners wishing to get their vessels delivered comparatively hassle and headache free, be it at a lower price.”
GMS said “Finally, the Turkish market remains marginally changed from last week, as import steel and the Turkish Lira both report decreases during the week, all while local sentiments remain in the doldrums.”
GMS Price Assessment - India/Bangladesh/Pakistan – Week 35 Unchanged
Dry Bulk – USD 550-570 per LDT
Tankers - USD 560-580 per LDT
Containers - USD 570-590 per LDT