Ship Recycling Market Starts Heating Up

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fter a long hiatus period, things are starting to heat up in the ship recycling market. In its latest weekly report, shipbroker Clarkson Platou Hellas said that increased optimism has returned to the market this week with various reports that the recyclers themselves have strong demand and desire to acquire any available unit that comes for sale, therefore the general feeling is that price indications should pull up once again. A slight reverse of the currency woes experienced in India is benefitting sentiment again on the waterfront at Alang as a currency appreciation is aiding improved indications.

According to the shipbroker, the dry bulk market had one of its best years last year with strong GDP growth globally underpinning demand across all sectors. Looking ahead, we anticipate stronger activity after Chinese New Year, with forecasts for Cape/Panamax rates set to improve again. Tankers are coming off one of the most difficult periods in their history as rates across all segments averaging below breakeven during 2021. Analysts suggest the outlook is quite promising as we look to the second half of 2022 and into 2023. The container market continues to be the strongest performing sector across all of the shipping angles with record rates continuing to support chartering activities.

Source: Clarkson Platou (Hellas) ltd

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