Older dry bulk and LNG vessels could provide a short-term breather in ship recycling supply, says Wirana
Limited recycling supply could get a brief respite in the coming weeks from a weakening second-hand interest in older vessels and softer demand for steam turbine LNG ships. Both of these factors will encourage these ships being sent for end-of-life disposal, according to Wirana Shipping. The prolonged shortage of vessels entering the ship recycling market ...
A potential short-term reprieve in the supply of vessels destined for ship recycling may be on the horizon, according to Wirana Shipping. The company's latest Demo Market Report & Market Outlook suggests that reduced demand for older vessels and a cooling second-hand market could lead to a brief improvement in recycling supply. Wirana notes that the current shortage of vessels entering the recycling market could see a comparative improvement, with older dry bulk and LNG ships being more likely to enter the recycling stream.
Hitesh Vyas, Vice President and Green Recycling Coordinator at Wirana Shipping, explains that strong freight and second-hand markets have previously allowed owners to keep trading older vessels rather than considering recycling. However, as second-hand buyers increasingly focus on modern, more efficient tonnage, owners of ageing, less-efficient ships may find recycling an increasingly attractive exit strategy.
This shift is expected to occur as second-hand activity in dry bulk remains largely focused on modern eco-tonnage, leaving little incentive for owners of older vessels to continue trading. As recyclers across the Indian Subcontinent demonstrate a strong appetite for available vessels, Wirana anticipates recycling supply to reach a moderate level in the immediate term, with dry bulk and LNG vessels expected to contribute significantly to available tonnage.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
