Limited recycling supply could get a brief respite in the coming weeks from a weakening second-hand interest in older vessels and softer demand for steam turbine LNG ships. Both of these factors
Limited recycling supply could get a brief respite in the coming weeks from a weakening second-hand interest in older vessels and softer demand for steam turbine LNG ships. Both of these factors will encourage these ships being sent for end-of-life disposal, according to Wirana Shipping.
The prolonged shortage of vessels entering the ship recycling market could get a breather, with Wirana Shipping forecasting a comparative improvement in recycling supply led primarily by the dry bulk and LNG sectors.
In its latest Demo Market Report & Market Outlook, Wirana said the circulation of recycling candidates improved during the past week, with a mixture of tanker, dry bulk and LNG vessels coming to market. While overall supply is expected to remain slow to moderate for the next couple of weeks, the company believes availability could subsequently improve on a comparative basis, particularly from dry bulk and LNG.
A significant factor will be the changing dynamics of the second-hand market. Wirana noted that second-hand activity in dry bulk remains focused primarily on modern eco tonnage, with hardly any interest being shown in older vessels mainly due to the upcoming increased requirements on environmental compliances. This could leave owners of ageing, less-efficient ships with
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