The latest Inside the Markets podcast from GMS, the world’s leading cash buyer of ships for recycling, takes listeners to Athens, a city with deep shipping roots and a key role in global trade flows. Host Jamie Dalzell, Head of GMS Singapore, speaks with Vagelis Chatzigiannis, Head of the GMS Greece Office, to review freight earnings and ship recycling developments across the Indian subcontinent, Turkey, and Europe.
 

Key Market Developments

Freight earnings remain firm while ship recycling supply stays limited as owners keep older vessels trading.

Freight Strength

• Global freight markets gained 3.6 percent this week

• Baltic Dry Index: Panamax down 2 percent, Supramax down 3 percent, Capesize up 1 percent

• Tanker freight rates continue to improve on the crude side

Owner Strategy

• Older ships remain in service as long as cash flows exceed recycling value

• Long-term charters and forward deliveries support continued trading

• Sale-and-leaseback structures provide additional flexibility

Recycling on Hold

• India handled about 84,000 LDT of arrivals, including LNGs and tankers, despite steel prices correcting by around USD 15 per ton

• Bangladesh faces slow activity, small LDT supply, flat plate prices near USD 519 per ton, and HKC paperwork delays

• Pakistan reports no arrivals for the third straight week, with plate prices near USD 619 per ton and the rupee around 283.44, awaiting HKC yard approvals

• Turkey sees a lira drop to 41.41 per dollar, falling import steel prices, and EU yard capacity constraints that could lead to congestion when recycling demand rises

Compliance and the Hong Kong Convention (HKC)

• Owners remain focused on HKC certification and IHM documentation to qualify for future recycling

• EU-flagged vessels face limited capacity at Aliaga yards, making the case for expanded EU-approved yard lists in the Indian subcontinent

Outlook and Risks

• Near-term recycling supply stays thin as long as freight rates remain profitable

• Flash forecast: tankers and bulkers are most likely to head for recycling when market conditions shift

• Key risk: a sudden drop in rolling mill steel demand could change the economics quickly

​​​​​​​This Athens episode gives shipowners, charterers, and recyclers the latest freight data, regional steel price updates, and HKC compliance considerations to help plan trading and recycling strategies.

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