Tidal Shift in Maritime Recycling Dynamics: Emerging Trends and Global Impacts

Recycling markets witness unexpected fluctuations as Bangladesh and Pakistan lead the charge, receiving support and upgrades amidst subdued sentiments in subcontinent yards.

shiprecycling-worker-GMS

In a surprising turn of events, the maritime industry is experiencing a dynamic shift, contrary to the anticipated easing in the dry bulk and container sectors with upcoming deliveries and the impending Chinese New Year next month. GMS, the preeminent global buyer of end-of-life ships, has elucidated this development in its latest report on the recycling market.

The noteworthy update indicates that both Bangladesh and Pakistan acceded to the Hong Kong Convention in 2023. Subsequently, there are anticipations of facility upgrades in both nations, with Norway, in collaboration with the International Maritime Organization (IMO), having already committed funds for the enhancement of the recycling sector in Bangladesh. This financial backing follows substantial support from the Japanese Government and the Japan Shipowners’ Association in the preceding year.

Despite these strategic maneuvers, GMS observes a prevailing quietude in the subcontinent markets, with the likelihood of an uplift before the Chinese New Year deemed improbable. The report notes the recent arrival of two MSC container ships at Alang, signifying the continuation of MSC’s extensive disposal program, having purportedly sold more than 15 vessels since January 2023.

Specifically, the MSC Jemima, constructed in 1994 with a lightweight tonnage of 12,677, made its way to Alang on January 24. Subsequently, on January 26, the 6,878 lightweight tonnage MSC Eagle F, built in 2000, was successfully beached.

Simultaneously, recycling yards in Turkey are experiencing a period of subdued activity.

For the fourth week of the year, Bangladesh leads the market, with standard prices at $550 per lightweight ton for containers, $530 for tankers, and $510 for bulk carriers. GMS reports a positive shift in sentiment in Bangladesh. Following closely, Pakistan reports prevailing price levels slightly reduced across the board, accompanied by an improvement in sentiment. India lags behind with prices $20 lower and weak sentiment. Turkey mirrors this subdued sentiment, with typical prices at $360, $350, and $340 for containers, tankers, and bulk carriers, respectively.

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