Ship Recycling Remains Sluggish

The Baltic Exchange’s Dry Index declined in October, and the slowdown is increasingly presenting itself via tonnages of various sizes and types across the Indian sub-continent ship recycling landscape, says cash buyer GMS.

This is especially the case in India where despite the lowest prices in the region, Alang continues to report an eye-popping number of occasional arrivals. And yet, the glut of tonnage sailing the high seas remains disproportionately ratioed against the number of units recycled over the last several years, leaving a potential surge of incoming tonnage on the horizon.

“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).

“Sales of sanctioned vessels have also shaken the industry with fixtures being reported at well below market pricing