GMS Weekly Ship-Recycling Report: Market Turmoil And Economic Uncertainty

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GMS’ latest ship-recycling report highlights the turbulent conditions in the Indian subcontinent’s ship recycling economies, setting the stage for a challenging third quarter. Various economic and political factors contribute to this instability, affecting the global ship-recycling industry.

Economic and Political Factors

Confusing budget announcements in Bangladesh and Pakistan, along with new taxes and duties on incoming vessels in Bangladesh, are creating uncertainty. India’s first post-election budget and ongoing political instability further complicate the situation. The Turkish market remains unpredictable, adding to the overall uncertainty.

Impact on Ship Recycling Industry

Global freight rates have been rising, putting pressure on the ship recycling industry. Wet tonnage has significantly decreased, and firm dry rates are expected to continue this trend, particularly affecting recycling yards in Bangladesh and Pakistan. Pakistan’s new budget, which includes increased income taxes, adds to the negative outlook.

Market Rankings and Pricing

GMS reports the following demo rankings and pricing for week 24 of 2024:

  1. Bangladesh: Shaky – Dry Bulk: 520 USD/LDT, Tankers: 540 USD/LDT, Containers: 560 USD/LDT
  2. India: Uncertain – Dry Bulk: 520 USD/LDT, Tankers: 540 USD/LDT, Containers: 560 USD/LDT
  3. Pakistan: Dull – Dry Bulk: 500 USD/LDT, Tankers: 520 USD/LDT, Containers: 530 USD/LDT
  4. Turkey: Dead – Dry Bulk: 360 USD/LDT, Tankers: 370 USD/LDT, Containers: 380 USD/LDT

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Source: Safety4Sea