GMS Week 35 – Sanctions Loom, Hulls
The sanctions package hanging over last week’s market has now landed. Washington broadened its economic campaign against Iran this week, extending the reach of secondary sanctions and placing shipping firmly within the latest measures. For a recycling market already navigating increasingly complex ownership structures, registries, trading histories and compliance exposure, the implications are…
Sanctions loom over the recycling market, affecting ship availability and freight rates. The US imposed secondary sanctions against Iran, expanding the scope of economic pressure on the country. This affects ships operating in the Gulf, altering trading patterns and affecting tanker earnings. Despite improving Gulf flows, oil prices fell back towards the high $80s per barrel.
Freight rates rallied, with Capesizes leading the advance, while Panamax and Supramax markets remained healthy. Tanker earnings continued to benefit from disrupted Gulf trade. Recycling supply remains constrained by a lack of fresh candidates, with buyers and yards ready but potential sellers scarce. Currencies saw modest movement, with the Indian Rupee, Pakistani Rupee, and Bangladeshi Taka showing relative stability.
Physical activity at ports remained strong, but fresh supply was thin compared to demand. The situation in Bangladesh was overshadowed by a tragic accident, prompting government action and investigations, which halted further operations there. The market outlook for Week 35 of 2026 shows buyers active, but the supply chain struggling to keep up.
Pakistan has seen a cooling of activity, while Bangladesh and India continue to seek fresh sales, particularly in specialist and higher-value units.
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.