Middle East crisis chokes ship recycling as energy costs and freight rates surge
- Ship recycling across the Indian subcontinent has dropped sharply due to the Middle East crisis
- Rerouting of vessels and the effective closure of key waterways have pushed up freight rates, reducing shipowner incentives to scrap
Despite weak supply, some recyclers are offering above-market prices to secure ships and maintain operations. But a meaningful recovery in recycling volumes is expected only if freight rates decline significantly
