When a ship or floating/offshore asset reaches the end of its economic or functioning life (generally 20 years and older), the unit is sold for recycling at one of the 5 major destinations in the world: India, Bangladesh, Pakistan, China, or Turkey.
The assets are sold / purchased based on the weight of the steel: This is known as a per / LDT (Light Displacement Tonnage) transaction with most of the constituent parts being melted down for recycling or re-used as follows:
In essence, ship recycling truly helps to extend a ship’s “useful” life well beyond its intended design.
In today’s ship recycling business, companies such as GMS are key players / stakeholders, who purchase a vessel for "Cash" from the Owners and redeliver the ship/offshore asset to a recycling yard (Ship Recyclers or 'end users'). Buyers such as GMS are not brokers, they are PRINCIPALS/TRADERS and they can take delivery of vessels on both “delivered” and “as is where is” terms.
However, as the ship recycling industry continues to mature (especially in the Indian sub-continent markets), GMS continues to expand its portfolio of services to encapsulate “Green recycling” via our GMS Responsible Ship recycling Program (GMS RSRP) that is executed in accordance with IMO’s “Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships” (HKC). Please visit this link to learn more about our Green Recycling Program.
Today, GMS prides itself as an industry leader, having successfully negotiated more than 3,300 ships / offshore assets since inauguration in 1992. Since 2008, 1 in 3 ships sold into the Indian sub-continent has been delivered by one of our principals.
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