Challenges loom for shipbreaking yards in Bangladesh, India, and Pakistan
Genoa – According to the latest analysis by GMS, the world’s leading buyer of end-of-life ships, some owners of “decidedly aged” vessels that continued operating in recent months may change their minds in the coming weeks due to worsening commercial prospects. Indeed, in addition to the monsoon season affecting the Indian subcontinent, further difficulties are emerging for shipbreaking yards in Bangladesh, India, and Pakistan. The Houthi rebel attacks in the Red Sea, which have sunk several ships, have prompted many owners to avoid these dangerous passages, opting instead for the longer and more expensive route via the Cape of Good Hope. This choice particularly impacts the operating costs of older ships, which are less fuel-efficient. Another factor of uncertainty is the Hong Kong Convention, which excludes numerous existing facilities in the region. On the pricing front, GMS reports substantial stability. Pakistan remains nominally at the top with indicative values of $450 per lightweight ton (ldt) for container ships, $440 for tankers, and $420 for bulk carriers. In India, prices are $10 lower for each type, while Bangladesh sees even further declines.
