Freight sectors are performing unexpectedly well despite ongoing global crises that are severely impacting ship recycling nations. According to Marine Link, the industry is grappling with economic instability, potential geopolitical conflicts, and the adverse effects of cheaper Chinese steel imports on local markets.
Geopolitical Tensions and Economic Instability
Global economic instability continues as tensions rise, with threats of potential attacks against Israel and speculation around President Putin’s position. The ongoing crisis, which began with trade backlogs during COVID-19, have driven inflation and further strained the global economy.
Impact of Cheaper Chinese Steel on Local Markets
Cheaper Chinese steel imports are causing concerns in India and Pakistan, where local ship recyclers are already struggling. The need for anti-dumping duties to protect domestic markets is evident as these imports threaten to undercut local inventories and create additional economic hurdles.
Regional Market Dynamics and Ship Recycling Challenges
Ship recycling markets are experiencing mixed stability, with Bangladesh seeing temporary relief as political changes unfold. Meanwhile, India’s fundamentals improved slightly, Pakistan’s market position weakened, and Turkey continues to struggle. Vessel offers remain tentative as recyclers reassess the market conditions influenced by global events and local challenges.
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Source: MARINE LINK
