Demand shocks keeping aging fleet afloat, argue shipowners

Ship recycling has fallen to its lowest level in 20 years, per a recent report by the Baltic and International Maritime Council (BIMCO). 

BIMCO — a trade group representing shipowners — states that capacity has been overtaxed by the Red Sea crisis, which has forced shipping lines to take a longer route around Africa’s Cape of Good Hope. Prior to the emergence of this latest choke point, BIMCO points to the impact of Western sanctions on Russian oil and coal, which similarly stressed tanker and...

Demand shocks drive ship recycling to lowest level in 20 years

Over the past eight quarters, ship recycling of bulkers, tankers and container ships has dropped to the lowest level in 20 years.

A combination of strong demand following a series of market shocks and low order books have kept older ships operating for longer than usual.

During the first quarter of 2024, only two million deadweight tonnes (DWT) ship capacity were recycled. This marks the ninth consecutive quarter with recycling levels below three million DWT. The last time recycling was this low...

Danish Shipping: EU’s new rules on waste export open doors for responsible ship recycling

The new agreement on waste shipments between the European Council and Parliament will make it possible to responsibly recycle EU-flagged ships outside the EU and OECD, trade and employer association Danish Shipping said.

The post Danish Shipping: EU’s new rules on waste export open doors for...

Constricted Demand Hampers Ship Recycling

The ship recycling industry faces unprecedented challenges, with empty yards, supply bottlenecks, and suppressed demand. The director of a prominent ship recycling facility in Alang, India, Sanjiv Agarwal, expresses concern over the current state, emphasizing a unique combination of suppressed demand and supply issues.

Navigating Challenges in Ship Recycling

“57 ships have been demolished this year versus 400 newbuild deliveries,” notes Mr Agarwal. “But 57 is still exponentially higher than in...

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