Shipowners should examine recycling market

Shipowners with older or harder-to-place vessels may have the opportunity to explore the recycling market in the coming months. According to the current market outlook from Wirana Shipping Corporation, the supply of ship demolition is expected to remain limited in the short term, supporting the demand from recyclers despite unfavorable steel conditions in some key markets. However, a potential lifting of sanctions against Iran could bring additional tonnage to the market and change the situation.

Currently, Wirana expects that improved freight conditions in various trade segments will lead to many older ships remaining in active trade. In particular, the demand for container ships has increased, and charter rates are showing a positive trend. The liquefied gas (LPG) market also remains favorable, while the tanker markets could gain support if stabilization occurs in the Middle East.

Market development and challenges

The situation in the dry bulk sector presents a mixed picture. While rates for Capesize vessels are declining, other ship types are experiencing only slight improvements. These differing developments suggest that the influx of recycling candidates remains constrained. As a result, recyclers must compete for the available ships, giving shipowners more negotiating power at this stage.

www.wirana.com