Office Address
123/A, Miranda City Likaoli Prikano, Dope
Phone Number
+0989 7876 9865 9
+(090) 8765 86543 85
Email Address
info@example.com
example.mail@hum.com
123/A, Miranda City Likaoli Prikano, Dope
+0989 7876 9865 9
+(090) 8765 86543 85
info@example.com
example.mail@hum.com
GMS Inc., a global
purchaser of sea freight vessels offered
to the ship recycling market, says the first seven weeks of 2024 have
demonstrated a lack of vessels heading for dismantling and recycling.
“Despite Chinese New
Year Holidays concluding [Feb. 16], a pervading theme of an unrelenting dearth
in the overall availability of tonnage across global ship recycling markets has
been enduring for several quarters now, resulting in another dry and dreary
week of market inactivity and silence across all recycling destinations,” GMS
writes in mid-February.
While many container
shipping lines have been phasing in new vessels, the company writes, “Even in
the container sector, wherefrom an overall clearing of older units has been
overdue, this segment continues to
(surprisingly) generate a bevy of second-hand buyers of overaged box carriers
who are willing to fix and operate these aged units.”
The desire to keep
ships on the water seems tied in part to the disruptions caused by attacks on
shipping in the Red Sea region, which has spurred higher
sea freight rates and a scramble to reposition containers where they are
needed.
GMS says freight rates
in the dry bulk sector also are rising, “placing a tighter squeeze on the
overall supply of vessels for recycling, a subsequent firming of demand and
offers from the Bangladeshi and Pakistani markets, and a simultaneous cooling
of sentiments and pricing from an inexplicably reserved India.”
The
company describes ship buying sentiment in Bangladesh and Pakistan as possibly
improving but dependent on whether ship dismantlers can secure a letter of
credit.
GMS
describes buying sentiment in India and Turkey as “weak,” with the ship broker
saying Turkey has “reported further negative movements in import steel as well
as the Turkish lira, making matters further worse for a market that is rapidly running out of oxygen.”
