The global shipping and recycling markets experienced heightened volatility this week as trade tensions, escalating tariffs, and fluctuating currencies drove uncertainty across major regions. Freight rates surged, oil prices nudged higher, and unexpected ship arrivals disrupted recycling dynamics, leaving key markets on edge.
Freight Rates and Oil Prices on the Rise
The Baltic Exchange Dry Index reported a sharp 7.4% increase, fueled by gains across Capesize, Panamax, and Supramax indices. This rise in freight rates signals strong trading demand but also reflects the pressure from tariff-related uncertainties. Crude oil also edged up slightly, closing at USD 62.74/barrel, further adding to the week’s market jitters.
Ship Recycling: Regional Shifts and Currency Woes
Ship recycling markets experienced surprising developments as large volumes of tonnage, including LNG carriers, returned to Indian sub-continent beaches. India received a significant share, while Bangladesh saw marginal arrivals. Bangladesh, however, celebrated progress with 18 ship recycling yards accredited under the Hong Kong Convention, whereas Pakistan remained far behind.
At the same time, currency depreciation across recycling nations, particularly in India, created pricing instability. Steel plate prices remained flat, but weak currencies and local buyer hesitation dampened recycling momentum.
This week highlighted the fragile balance in global shipping and recycling. While freight trades surged, recycling activity stayed mixed due to currency volatility, trade tariffs, and regional policy constraints. With protectionist moves and economic pressures mounting, industry stakeholders face an uncertain outlook where both opportunities and risks loom large.
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Source: Marine Link
