Cash buyers say the problems South Asian ship recyclers faced acquiring tonnage in 2023 are worsening as the Red Sea crisis triggers demand for more vessels and higher freight rates.
Shipowners, which shunned the low scrap price offerings coming out of the Indian subcontinent throughout last year, now have even less incentive to recycle their ships.
“An increase in the voyage routes due to the problems in the Red Sea has resulted in an increase in demand and could delay tonnage to be sent for recycling,” said Wirana in its latest market report.
