Freight sectors are performing unseasonably and unrelentingly well amidst all the unfolding crises that are still choking global ship recycling nations out of life-sustaining tonnage, reports cash buyer GMS. This includes potential attacks against Israel and brewing news of President Putin possibly being removed due to Ukraine’s successful invasion of “Mother Russia.”

“Consequently, we continue to see world economies trudge silently up this unnecessary hill of economic instability that started with a massive backlog in global trade and drove inflation up since the onset of Covid-19, which was further exacerbated by the attacks on and even sinking of merchant vessels in the Red Sea Lanes. 2024 summer is certainly unfolding into a horror movie where levels across the board remain calamitous due to nervous sentiments, political instability, violently shaky fundamentals across the board and possible war.”

Ship Recycling Markets Face a Perfect Storm

As Cheaper Chinese steel imports cause concerns in India and Pakistan again, further anti-dumping duties are clearly needed to curb cheaper steel imports from undercutting inventories at domestic ship recycling yards, further creating economic hurdles for local ship recyclers, says GMS. “As such, a meagre collection of poorer condition Far Eastern built and owned vessels has been concluded below USD 500/LDT, as the markets take stock of events expected to unfold over these summer months.

Market Instability: A Global Phenomenon

“On the local markets front, we see a modicum of stability return to Bangladesh as PM Hasina flees the country and the military temporarily takes charge, India was greeted with a minor yet welcome surprise in fundamentals, Pakistani buyers dropped back down the market rankings again, and Turkey continues to suffer silently, week after week.

The Impact on Ship Recycling Prices

For week 33 of 2024, GMS demo rankings / pricings are:

• Bangladesh: $530 for container ships, $520 for tankers, and $500 for bulk carriers.
• India: $520 for container ships, $510 for tankers, and $500 for bulk carriers.
• Pakistan: $510 for container ships, $500 for tankers, and $490 for bulk carriers.
• Turkey: $380 for container ships, $370 for tankers, and $360 for bulkers.

The Way Forward: A Call for Action

The global ship recycling industry is facing a challenging period, but there are steps that can be taken to mitigate the impact of these crises. Governments and industry stakeholders need to work together to address the issues of political instability, economic uncertainty, and the need for sustainable ship recycling practices. Only then can the industry emerge from this difficult period and continue to play a vital role in the global economy.