Ship recycling market stalls as disruptions prompt shipowners to delay scrapping decisions
- Shipowners are delaying the scrapping of older vessels as ongoing geopolitical disruptions tighten supply and boost freight rates
- Stronger earnings, longer voyage routes and market uncertainty encouraging owners to hold onto older tonnage rather than scrap
- Ship recycling sales in April were especially low with mostly only smaller specialised ships sold for demolition
Vessels severely damaged in the Middle East conflict will eventually enter the recycling stream, though they present more complex safety and environmental challenges than standard end-of-life ships
