The Baltic Exchange Sea Freight Index cooled its seven-day losing streak on Friday, bouncing back about 0.5%, and propelled primarily by larger sized vessels. Translation? “The ensuing performance of the Baltic Exchange Dry Index has, and should see a general increase in the supply of mid-sized (and smaller) dry (and even the occasional wet) units being offered into the ship recycling markets, as evident from both Bangladeshi and Indian port reports over recent weeks,” says cash buyer GPS.
For ship recycling, a price floor seems to have been established after a year of significant declines that has seen nearly USD 150/LDT in prices lost in a matter of months. Mid-to-high USD 400s/LDT are now the prevailing norm for tonnage across most sectors, says GMS.
Potential Trump tariffs on China will be interesting, says GMS, especially for its impact on steel and auto exports. Additionally, China’s stimulus package is set to be announced by the Chinese government at some point around the New Year. This may finally see some optimism for its economy, and this should even have major implications for the shipping, ship recycling, and global industries at large.
“As such, as ship recycling markets head into 2025 on a firmer footing, we can only hope that this economic outlook is maintained well beyond the New Year, so that ship recycling can resume.”
GMS demo rankings / pricing for week 49 of 2024 are:
https://www.marinelink.com/news/ship-recycling-market-ready-newyear-520035
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