Ship Recycling Market Shows Mixed Performance

The ship recycling market has had a mixed week. In its latest weekly report, Best Oasis (www.best-oasis.com), one of the world’s leading cash buyer of ships, said that “the ship recycling market across India, Bangladesh, Pakistan, and Turkiye presents a mixed landscape. In India, market conditions have shown volatility, initially marking an improvement but facing a downturn as the week progressed, potentially influenced by the Holi festival’s impact on market sentiment”.

According to Best Oasis, “Bangladesh’s market appears soft, yet certain buyers with access to LC facilities and robust yard capabilities show a pronounced interest, particularly in vessels deliverable promptly post-agreement. Pakistan’s market continues to exhibit subdued activity, akin to the previous week, attributed to Ramadan’s observance and a scarcity of tonnages maintaining current price levels. Meanwhile, Turkiye has experienced a modest uplift in its import market by approximately 5 USD, alongside stability in its local market:.

The company also commented that “in a striking revelation, a vessel initially sold for a minimal amount by a Japanese owner for supposed environmental recycling at a Dutch facility, is now at the center of an intense controversy. The facility’s intention to sell the ship to a Chinese yard for restoration directly contradicts the directives of the Dutch environmental and transport supervisory authority ILT (Inspectie Leefomgeving en Transport), which has classified the ship as waste to prevent its export to non-OECD countries, including China. This situation not only challenges the principles of green practices but also poses serious legal and ethical dilemmas regarding the repurposing of the vessel, potentially bypassing international norms. The case, which highlights a profound hypocrisy in the application of environmental standards, is now before a Dutch court. The decision could significantly impact the global recycling industry by possibly allowing the ship, labeled as waste, to gain a competitive advantage through a legal loophole for EU based recyclers. This scenario raises questions about the integrity of environmental recycling practices and the potential for exploitation in the international arena. With a pivotal court hearing underway, the global ship recycling community eagerly awaits the outcome, which could redefine the very ethics of ship recyclin”.

In a separate note, shipbroker Banchero Costa added that “both end buyers in Bangladeshi and Pakistani markets remain wellpositioned to purchase tonnage from East and West respectively while the traditionally quieter month of Ramadan continues there is little to report on in the way of fresh sales. Cash Buyers remain poised to pounce and pay up on tonnage especially that which can give delivery promptly with one recent tanker sale of note being the 2000 blt Suezmax MT JAL GAMINI at a reported price USD 541 per LDT / LT , basis delivery ‘ tanks clean for hot works’ Bangladesh. The Vessel was DD (over) due and perhaps a preliminary indication that we might see a lot more vintage tanker tonnage during the course of the year that has had a more ‘interesting’ recent trading history”, the shipbroker concluded.

Nikos Roussanoglou, Hellenic Shipping News Worldwide