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Ship Recycling Prices Continue to Defy Gravity

August 9, 2021

© katiekk2/AdobeStock
© katiekk2/AdobeStock

Prices across the Indian sub-continent ship recycling markets continue their impressive upward trajectory this week, as end buyers press on for any available tonnage, at levels well above $600/LT LDT, especially in the case of Bangladesh and a now firming Pakistani market.

The summer months have brought with them a relative paucity of units, which is somewhat surprising given the record levels we are witnessing once again and the fact that the market has more than doubled in just the space of a year.

Any supply of vessels is largely from the beleaguered tanker and offshore sectors, but there are still the odd RoPax/Passenger units and reefers to talk of as well, that are being diverted primarily into India.

Dry bulk and container chartering markets have been flying for much of this year, so we have seen very few of these units being proposed for recycling, as owners are now opting to pass surveys on vessels almost 30 years of age, as such have been the freight earnings in 2021.

Overall, despite COVID lockdown restrictions remaining in place (especially across Bangladesh in particular), ship deliveries and beachings continue in all locations and port reports are seeing a trickle of vessels arrive over each tide.

For week 32 of 2021, GMS demo rankings / pricing for the week are as below:

Source: GMS

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