Ship recycling volumes in July see a boost from gas and vehicle carrier sectors
- Merchant vessels of a combined more than 1m gross tonnes was beached during July
- Tonnage was the highest seen since September 2023, partly due to a rise in the sale of LNG tankers for recycling
- Several shadow fleet tankers also arrived at recycling centres last month
A total of 30 ships were beached for recycling in July, up from the 22 vessels which arrived at vessel demolition centres in the previous month
SHIP scrapping volumes in July reached their highest level in almost two years, as a number of large gas carriers, tankers and bulk carriers arrived at ship recycling centres on the Indian sub-continent and Türkiye.
According to Lloyd’s List Intelligence data a total of 30 merchant ships of a combined 1,047,788 gt were beached during July, a large increase over the previous months’ 22 ships with an aggregate tonnage of 676,976 gt.
July recycling volumes were the highest seen since September 2023, as the beaching of four South Korea-owned liquefied natural gas carriers significantly boosted tonnage levels.
They comprised the 1999-built Hyundai Aquapia (IMO: 9179581) and 2000-built Hyundai Technopia (IMO: 9155145), which arrived at Alang, India.
In addition, the 1998-built HL Sur (IMO: 9176010) and 1999-built HL Ras Laffan (IMO: 9176008) arrived at Chattogram, Bangladesh, in July for recycling.
Other ships of high gross tonnage being recycled in June included Grimaldi’s 1998-built, 51,925 gt, Repubblica del Brasile (IMO: 9138422), which arrived at Aliaga, Türkiye on July 31, Lloyd’s List Intelligence data shows.
In February, the same owner sold sister vessel Repubblica Argentina (IMO: 9138410) for recycling, also to Turkish shipbreakers.
Including the two Grimaldi vessels, only three deepsea pure car and truck carriers have been recycled since 2023, as rising car exports from China and Cape of Good Hope diversions have tied up all available vessel capacity.
In the dry cargo sector, activity was dominated by the handysize and panamax segments and included the 1994-built, 69,000 dwt, panamax Twin Dragon (IMO: 9087740), which is being recycled at Gadani Beach, Pakistan.
Crude oil tankers arriving for recycling in July included the sanctioned aframaxes Linda (IMO: 9256858) and Conico Atlas (IMO: 9288693). Built in 2003 and 2004 respectively, both vessels are being scrapped at Alang.
The only containership beached for recycling in July was the 2,400 teu steam turbine-powered Horizon Enterprise (IMO: 7617905). This 1980-built, Jones Act, ship was latterly operated by US-flag container line operator Matson in the US west coast to Hawaii trade.
Shipbroker Intermodal noted this week that the South Asian ship recycling scene remained “relatively stable”, although dynamics vary by country.
It reported that while domestic conditions held firm, a stronger US dollar due to recently announced tariffs had raised import costs for Indian ship recyclers and compressed profit margins.
“Buyers are still active, but more cautious, with many delaying decisions amid tight economics as the rupee’s volatility remains a key variable that could continue to influence short term momentum,” said Intermodal.
Meanwhile, the Bangladesh market has seen more or less no ship recycling purchases of late, as buyers have adopted a conservative stance on pricing.
Intermodal noted that Pakistan has emerged as the region’s “frontrunner” in buying tonnage recently despite monsoon-season disruptions.
“Gadani yards are outperforming rivals, buoyed by stronger domestic steel prices and a recently strengthened currency.”
