The latest Inside the Markets podcast from GMS, the world’s leading cash buyer of ships for recycling, takes listeners to Hamburg, one of Europe’s great shipping capitals.
Host Jamie speaks with Henning Prinzen, Head of the GMS Hamburg Office, to examine how German shipowners are prioritizing trading income and delaying recycling.


Key Market Developments
Hamburg’s shipping community is capturing strong earnings while postponing scrapping decisions.

Freight Strength

• Baltic Dry Index up 7.4 percent with Capes +1 percent, Panamaxes +0.4 percent and Supramaxes +0.5 percent

• Crude oil prices steady near USD 62.74 per barrel

• Container feeders, bulkers and tankers all earning solid returns

Owner Strategy

• Long-term time charters, forward deliveries and sale-and-leaseback deals used to lock in cash flow

• Efficient maintenance schedules to maximize vessel trading life

• Flexible financing to react quickly if market conditions shift

Recycling on Hold
Despite global activity, no significant tonnage is expected to recycle from Germany in the short term.
Steel plate prices remain steady, India around USD 448 per ton, Pakistan about USD 625 per ton, Bangladesh near USD 519 per ton, while the Indian rupee trades in the high 88s per USD and Pakistan’s rupee sits around 284.
These numbers are closely watched but have little immediate influence while freight rates stay strong.

Compliance and the Hong Kong Convention
Owners remain attentive to Hong Kong Convention (HKC) requirements and Inventories of Hazardous Materials (IHM) for future recycling.
Preferred destinations when recycling resumes are HKC-approved yards in the Indian subcontinent or Turkey, depending on market conditions and yard readiness.

Outlook and Risks

• Near-term forecast: no tankers, no bulkers and only limited container feeder recycling unless freight rates drop sharply

• Key risk: a sudden freight market downturn that would make recycling financially attractive overnight

This episode offers market intelligence for shipowners, charterers and recyclers who need to track freight strength, trading strategies and eventual recycling opportunities.