GMS Week 44 – Buyers Raise The Stakes

Last week’s recovery in dry freight offered recycling buyers little encouragement. This week, however, sentiment has improved across the sub-continent, with recyclers showing greater willingness to compete for available tonnage. Bangladesh continues to lead the market, while Pakistan and India are also displaying renewed confidence. Despite improving buying interest, the shortage of suitable recycling candidates persists as owners continue to benefit from attractive trading alternatives.

The Strait of Hormuz supplied another reminder of the fragile security environment surrounding Gulf shipping. A tanker was attacked near Khasab, Oman, on October 29, reportedly sustaining an engine-room fire before resuming its voyage. The incident renewed concerns over passage security and insurance costs. For ageing tanker owners, disrupted trading patterns and restricted effective vessel availability continue to support employment opportunities rather than encourage recycling decisions.

Oil markets responded to the renewed uncertainty. Brent advanced above USD 117 per barrel on Friday, while WTI approached USD 104 as concerns over Middle Eastern supplies persisted. Elevated energy costs continue to pressure recycling operations and steel production, particularly across the sub-continent. Yet the same uncertainty can support tanker earnings, keeping older vessels commercially attractive for longer than recyclers would prefer.

This story was originally published by Hellenic Shipping News. Read the full story at Hellenic Shipping News →