#ShipRecycling Market - Week 20 - WHAT GOES UP MUST COME DOWN! Another woeful week of declining sentiments has lef… https://t.co/GoWOR8t0EH


Demo Market News | Analysis | Commentary Listen to our new 7-minute audio wrap-up of the global #shiprecycling mar… https://t.co/C8qGOskuxh


#ShipRecycling Market - Week 19 - DOWN AND DIRE! It has been a woeful week across all of the major ship recycling… https://t.co/jnuhiVk3XD



CEO of the Year Award being presented to Dr. Anil Sharma by H.E Eng. Essam M Alammari, Permanent Representative of the Kingdom of Saudi Arabia to the IMO & SIR Sohan Roy, Founder Chairman & CEO, Aries Group. 

GMS’ Dr. Anil Sharma selected CEO of the Year.

GMS’s Dr Anil Sharma has been awarded the prestigious ‘CEO of the Year’ at the ShipTek 2022 International Conference & Awards.

ShipTek Awards recognise business leaders judged to have contributed significantly to the industry and demonstrated innovation, vision, and leadership in their endeavours. 

On receiving the award, Dr Sharma said “I am honoured to receive this award. Established 30 years ago, GMS is now the world’s leading buyer of ships and offshore assets. Our ESG friendly recycling solutions are designed to satisfy even the most demanding shipowners, banks, private equity funds and investors. We have pioneered sustainable ship and offshore recycling practices and continue to offer extensive pro bono safety training to recycling yards in India, Bangladesh and Pakistan.” 

He added, “We are proud to see that the important work being done at GMS to improve recycling sustainability is recognised by the greater maritime community.”

Speaking about the award, the organisers said “ShipTek 2022 focused on the industry's pressing issues and emerging trends. Experts reflected on the efforts taken by the shipping industry to fulfil its commitment towards the environment, ensuring the sustainability of the sector in the future.”

Organised in Dubai this week by Biz Events Management in association with Aries Group, Shiptek brought together key decision-makers and high-level policymakers within the Marine/Offshore/Oil & Gas sectors.

H.E Eng. Hessa Ahmed Hamdan Almalek, Advisor to the Minister for Maritime Transport Affairs, The UAE Ministry of Energy & Infrastructure and H.E Eng. Essam M Alammari, Permanent Representative of the Kingdom of Saudi Arabia to the International Maritime Organization were in attendance.

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EU Ship recycling rules need “major surgery”, not a “band-aid”.

The EU Ship Recycling Regulation needs “major surgery”, but the current proposals offer little more than a sticking plaster, says Gudrun Janssens, Head of Environmental & Technical Affairs, Royal Belgian Shipowners Association, on the latest GMS Podcast.

Ms. Janssens believes the European Commission has “lost direction” on ship recycling after a hiatus following China’s decision to ban the import of waste.  She adds that a vague definition of the standards yards need to comply with has further muddied the waters for yards wishing to apply for EU approval. 
Ms. Janssen says that shipowners and ship recycling facilities need “legal certainty” but that the current situation has the opposite effect, far from delivering certainty. “With the current proposal, the Commission trying to bring the Basel Ban into European legislation; we went one step forward but we’re going two steps back, and it’s creating huge legal uncertainty.” She adds it is hard to imagine anyone supporting the changes to the EU WSR currently because they do not represent a “long-term sustainable solution.”

Speaking alongside Ms. Janssens on the GMS Podcast, tanker owner Euronav’s Chief Financial Officer Lieve Logghe called on the EU to “enable and operate a common level playing field” in the form of IMO’s Hong Kong Convention.  

Ms. Logghe questions the sense of sending a ship trading in Asia for recycling at a European yard with the resulting steel then being exported out of Europe. “From an ESG perspective, first returning your fleet for scrapping in Europe and then exporting [the steel] again doesn’t bring value” to the circular economy.

Asked about why Euronav had recently reduced its vessel depreciation by Euro 100m, Ms. Logghe points out that Euronav was the only tanker company using zero residual value before the accounting changes were made. “It was not reflecting reality given the high scrap prices”, and she added that the position now placed Euronav “in sync” with other tanker owners.

Speaking about the Russian invasion of Ukraine, Ms. Logghe said the main concern for Euronav is the situation with their 200 Russian and Ukrainian crew on board, adding that current events are being watched extremely closely.  Echoing the sentiments, Ms. Janssens said that the Belgian Shipowners Association is looking out for its members with interests or sailing in the areas and is in touch “day and night” with the competent authorities.

Listen to the complete discussion on Apple Podcasts, Google PodcastsSpotify, and Amazon Music.

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Ship financier Arntzen calls for tanker cull on newly launched GMS Podcasts.

Ship financier Morten Arntzen is calling for a tanker scrapping cull to streamline a sector bloated by oversupply.

Mr Arntzen makes his comments on a new maritime industry podcast being launched by leading cash buyer GMS. The podcast goes live on February 22nd on Apple, Google and Spotify.

Mr Arntzen tells the podcast: “There has to be a surge in scrapping… if you look at the Gulf now, there are probably a third more ships waiting to move cargo than are needed.”

The commentary reflects the current malaise within the tanker sector. The Baltic Exchange has reported this month that rates for the largest crude oil tankers hit an all-time low setting a new record of -$20689 per day on a time charter equivalent basis.

With brokers depicting a market with plenty of tonnage and few cargoes to go around, DHT, the crude oil tanker company, is reporting that the proportion of its fleet operating on the spot market is earning $12,600 per day or $1700 over their cash neutral rate of $10,900. Frontline meanwhile reports that as of the end of Q3 in 2021 as many as 47 new buildings of VLCCs were added to fleets but only 14 were scrapped. Mr. Artzen says there is a fundamental supply and demand imbalance. “There is no question. We have too many ships in the water.”

But he says even an increase in scrapping will not pull the tanker market out of the doldrums. For recovery, Mr. Arntzen says there will need to be growth in US exports which “will give you something like a triple of the ton-mile number” compared to exports from the Middle East.

Mr. Arntzen speaks candidly on the GMS Podcast on various topics, including EEXI, carbon tax, recycling and the lifting of sanctions. He discusses the calculations facing many owners now balancing heavy annual survey expenses with the record high price for scrap. "I think the decision becomes really easy when you're talking close to US$30m for a V for scrap," he says. He adds that uncertainty in the markets and regulatory hurdles are coming, justifying a decision to recycle.

Mr. Arntzen further discussed a recent visit to ship recycling yards at India's Alang, reporting that his preconceptions were challenged by what he saw.

“I flew up there with some skepticism and a lot of questions,” he said, “and walked away very comfortable that the owners we finance can recycle properly there.” He believes the yards in Alang are the “future of recycling” as the world goes “greener and cleaner” and says that yard owners have “figured out that it’s not only the right thing to do, it’s good business.”

Wrapping up the podcast, Mr. Arntzen is asked what advice he would give his 25-year-old self and, as expected from a finance specialist, his advice focuses on the numbers. “When I was getting into the business, being quantitative was really helpful. The use of data is going to become much more important - weave that into your position and how you’re learning.”

The new episode of GMS’s podcast will broadcast regularly giving insight into the shipping markets, vessel residual values and recycling. Podcast host and GMS Chief Communications Officer Jon Chaplin said:

“With podcasts, you can drop in on a conversation and hear what the leaders in their fields are thinking – where you want when you want. At GMS we believe that knowledge opens the door to opportunity and our podcasts are aiming to provide the key.”

Download on Apple Podcasts, Google PodcastsSpotify, and Amazon Music.

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GMS responds to defamatory and damaging comments


In light of recent press reports alleging involvement in illegal exports and questioning its commitment to clean and safe ship recycling, Global Marketing Systems (GMS) wishes to make clear that it will take all necessary legal steps to protect its reputation from unfair, damaging and defamatory comments.

Neither GMS nor anyone associated with GMS has been convicted of any alleged export of toxic vessels or in violation of any regulations governing the safe and sound recycling of end-of-life vessels. GMS has strict compliance checks in place to ensure that the sale and purchase of vessels by our principals is within the law.

GMS has always been an ally in the struggle for greener and cleaner ship recycling practices and to promote this collective goal, GMS provides zero cost safety and environmental protection training to recycling workers under its Sustainable and Offshore Ship Recycling Program (https://gmsinc.net/gms_new/index.php/gms-cash-buyer).

Within the recycling and wider maritime community, GMS is viewed as a torchbearer of higher standards, encouraging and assisting numerous ship recyclers in Alang to adopt best business practices and obtain Class NK Certification so as to comply with international standards in particular The Hong Kong International Convention for the Safe and Environmentally Sounds Recycling of Ships (HKC).

GMS is a respected corporation in the shipping community, led by Dr. Sharma who has spent a lifetime building a reputation as a leader in the industry and advocating the cause of safe and sound recycling of end-of-life vessels. 

 Any publication / corporation / party seeking information as to the green credentials of GMS is encouraged to visit our website www.gmsinc.net and to write to us at bd@gmsinc.net before publishing any information concerning GMS, its affiliates, or officers of the company.


- Legal Department, GMS

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Trouble ahead?

With scrap prices more than doubling in 2021 and the year closing out above a remarkable USD 600/ldt, questions are now being asked about how long into 2022 the resurgence can last.

Following a collapse in rates brought on by the Coronavirus outbreak, the price trajectory has been only up - mirroring dry and container charter rates and stock markets. 

Inevitably, what goes up must come down, and as 2021 ends, we are starting to see a correction in ship recycling levels which is likely to continue into the new year.

Ongoing uncertainty surrounding about new COVID-19 variants remains a constant threat with disruption to trade and supply routes an ever-present danger. Is it any wonder that leading players are exercising caution, despite the outlook for prices remaining optimistic and vessel supply expected to remain somewhat static?

Most vessels recycled so far this year are from the beleaguered tanker and offshore sectors, and whilst charter rates remain in the doldrums, we expect it may be more of the same again for 2022. There are suggestions in the market that the wet market may be starting to turn a corner and there is some optimism for a resurgence in rates for the coming year. Hence it may be that we see tanker owners hold back their vessels for a while longer and wait for an uptick rather than opt to recycle now. This will lead to an interesting supply/demand dynamic playing out across the sub-continent, with a healthy appetite to fill plots in all locations apparent off the back of firm steel prices. 

China demand for steel will also sustain in 2022, and rather than the cheap billets being exported from China in 2015 which so damaged the industry and led to a ship recycling recession, this is helping to prop up prices. The Chinese ship recycling market also remains closed, except for Chinese flagged government tonnage, so the majority of vessels are being recycled in the subcontinent and Turkey (for mostly EU flagged vessels). 

Dramatic currency fluctuations have been of chief concern in both Turkey and Pakistan this year counteracting stunning steel gains seen on occasion in those locations and will likely continue to frustrate going into the New Year. In India and Bangladesh currencies have largely been stable, and this has contributed to the stunning performance of both markets this year in tandem with rising steel prices. 

There has also been great progress in the upgrade/certification of yards in India, with 92 out of 120 active yards now holding either IR, LR, RINA or Class NK Statement of Compliance (SoC) with the Hong Kong Convention. In Bangladesh, so far, only PHP Ship Breaking and Recycling Industries holds a Class NK SoC, but several others are expected to follow suit as ship recycling standards continue to improve at pace. 

So, whilst no one expects the market to double again next year, there is cause for optimism in 2022 global ship recycling markets, with demand rampant, a dwindling supply of vessels and strong local fundamentals expected to sustain across the board.




Jamie Dalzell,

Senior Trader, GMS Singapore

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