07 Oct 2026
Why did ship recycling supply remain tight in Q3 2026 even as recycling prices strengthened and yards remained ready to buy?
In this episode of GMS Podcasts, Nayeem Noor, Vice President, Business Development at GMS, speaks with Jamie Dalzell, Head of GMS Singapore, about what Q3 2026 revealed about the global ship recycling market.
The quarter began with expectations of a meaningful increase in recycling supply. Recycling yards had capacity and buying appetite, and a substantial number of ageing vessels appeared to be moving closer to an end-of-life decision. But the anticipated wave of recycling candidates did not materialise.
The main reason was not a lack of demand from recyclers. It was the strength of the alternatives available to shipowners.
Strong freight earnings, second-hand opportunities and continued employment kept many ageing vessels trading. As a result, recycling values had to compete not only with each other, but with the earnings an owner could still generate by keeping a vessel in service.
Why stronger recycling prices did not result in a corresponding increase in vessel supply
How freight earnings influence the timing of a ship recycling decision
Why vessel scarcity supported recycling prices during Q3 2026
How Bangladesh and Pakistan competed for limited recycling candidates
Why India's Alang market can behave differently for specialist vessels
The growing influence of compliance, sanctions exposure and facility capability on commercial decisions
Why Turkey operates in a different competitive segment from the major South Asian recycling destinations
How shipowners should compare recycling value with freight, second-hand opportunities and other alternatives
Whether today's shortage of recycling candidates could contribute to a larger recycling pipeline in the future
The discussion highlights an important distinction in ship recycling market analysis.
A vessel's recycling decision cannot be understood simply by comparing the latest prices in Bangladesh, Pakistan, India and Turkey. The commercial decision depends on the individual vessel, its location, employment prospects, second-hand value, regulatory requirements, compliance profile and the realistic buyer pool available to it.
As Jamie explains, a higher headline recycling offer only matters if the transaction can actually be completed within the regulatory, operational and delivery requirements applicable to that vessel.
The same principle applies when looking at weekly market rankings. A change in which recycling destination leads the pricing board may be important, but understanding why the ranking changed often tells us much more about the underlying market.
Q3 ended with willing recycling buyers but relatively reluctant sellers.
The immediate ship recycling market remains constrained by limited vessel availability. At the same time, ageing ships that continue trading rather than recycling do not disappear from the future supply equation.
If freight markets weaken, second-hand liquidity declines or employment opportunities narrow, some of this deferred tonnage could eventually return to the recycling market.
The key question for shipowners is therefore not simply:
"Is the recycling market strong?"
It is:
"Is recycling now more attractive than the alternatives still available to this vessel?"
Listen to this episode of GMS Podcasts for Nayeem Noor and Jamie Dalzell's discussion on the Q3 2026 ship recycling market and what the quarter could mean for the months ahead.
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