The “raging fires of tariffs and counter-tariffs” that continue to suppress recycling vessel prices are creating a path for falling prices in the first, and possibly second, quarter of 2025, reports cash buyer GMS.
“Some of the seriously older tonnage that has gotten an extension on their expiration dates via global events and wars that saw charter rates soar through the skies across 2023 and especially 2024, only subjected the ship recycling industry to one of the lowest volumes of tonnage offerings seen in about a decade.
“But with time trudging on and chances for further trades on these already rusty units getting slimmer at the seams with every passing week, the industry has as a result, seen a flurry of tonnage enter the markets since the onset of 2025, which was then followed by a surge in arrivals at respective waterfronts over the last couple of weeks.”
As the Baltic Exchange’s Dry Index reported dry bulk rates stabilizing across January 2025 and even start to climb across the last couple of weeks, the inflow of recycling tonnage at the bidding tables has continued unabated even in the face of declining offers.
The U.S. Dollar continues to dominate the currency race as it registers noteworthy improvements across the ship recycling board, hitting India the hardest this week. This weakening in ship recycling nation currencies as well flatlining / declining steel plate prices have seen vessel offers continually cooling across the sub-continent markets.
GMS demo rankings / pricing for week 6 of 2025 are:
https://www.marinelink.com/news/ship-recyclers-expect-falling-prices-522085
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