The Baltic Exchange’s Dry Index saw a decline in October, reflecting a slowdown in ship recycling across the Indian subcontinent, particularly in India, according to cash buyer GMS. Despite the lowest prices in the region, Alang has reported a surprising number of ship arrivals. However, the overall tonnage in transit remains disproportionately high compared to the volumes recycled in recent years, indicating a potential influx of ships soon.
This ongoing situation has resulted in a sluggish fourth quarter for the ship recycling industry, mirroring the trends of previous years. All sectors are experiencing declines, with sales occurring at diminishing levels, save for a few notable transactions. Recently, two LNG vessels were sold, highlighting the sector’s struggles, alongside a steady flow of older handymax bulk carriers being sold, as reported by various ports.
Additionally, the industry has been affected by the sale of sanctioned vessels, which are being fixed at prices significantly below market rates in Alang. This has created a two-tier pricing system, leading to confusion and concern within the industry. GMS’s demo rankings and pricing for week 44 of 2025 reflect these ongoing challenges.
