- Slowdown Evident Across Indian Subcontinent Yards.
- India’s Alang Records Arrivals Despite Lowest Prices.
- Recycling Sector Faces Sluggish Fourth Quarter.
The Baltic Exchange’s Dry Index took a dip in October, highlighting a slowdown that’s becoming more apparent in the ship recycling markets across the Indian subcontinent, as noted by cash buyer GMS, reports Marine Link.
India Sees Arrivals Despite Lower Prices
In India, even though it’s offering the lowest prices in the region, Alang is still seeing a significant number of vessel arrivals. However, the total tonnage available for recycling is still much higher than the number of ships that have been dismantled in recent years, suggesting that we might see an influx of vessels soon.
Recycling Activity Remains Sluggish
“As a result, the ship recycling industry has continued to endure a stultifying and sluggish Q4 (in line with the numerous quarters spanning the last few years) with declines evident across all sectors and sales (barring the occasional stunners) occurring at ever deteriorating levels. An eye-catching duo of LNGs sold last week (as a clear-out from this beleaguered sector continues) were just such a highlight, including a seemingly steady trickle of older dissolute handymax-sized bulk carriers sold in recent weeks as well (as confirmed by the various port reports).”
Sanctioned Vessel Sales Add Market Confusion
“Sales of sanctioned vessels have also shaken the industry with fixtures being reported at well below market pricing into a dithering Alang, establishing a two-tiered price system that is causing confusion and consternation in the industry.”
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Source: Marine Link
