Further decline in ship recycling

The number of merchant ships recycled in 2024 fell to a near-record 20-year low, according to Lloyd’s List.

The journal reports that 324 merchant ships totalling 4.6m tonnes were recycled, the lowest level since 2005 and more than 30% down on the gross tonnage recycled in 2023. Only 17 crude oil tankers and product tankers were processed. The general cargo segment provided 30% of the ships recycled.

Cargo growth

Lloyd’s says that strong growth in cargo volumes meant vintage tonnage remained in the trading fleet. Additionally, lower investment in new ships during 2010s has resulted in second-hand values rising since 2021, with values of vintage vessels usually in excess of scrap sale prices.

Ship recyclers are said to be offering relatively high prices, partially due to a shortage of candidates coming on the market. It also notes that cheap imports from China have reduced the demand for recycled metals from ships in the Indian subcontinent.

On the other hand, with some 1 300 tankers and 1 250 bulk carriers older than 20 years still in service, and a further 680 container ships built before 2005, recycling is expected to pick up this year.