GMS Commentary on Ship Breaking in Week 53 - Tumultuous 2020
World's leading cash buyer of ships for recycling GMS said that as we bid farewell to 2020, which has quite frankly been an unprecedented and
World's leading cash buyer of ships for recycling GMS said that as we bid farewell to 2020, which has quite frankly been an unprecedented and tumultuous year for nearly the entire world, all eyes are now on 2021 and most are trying to stay optimistic about brighter days ahead, especially given the roll out of the Covid-19 vaccine finally underway in many countries across the world. The onset of the pandemic certainly had a dramatic and devastating impact on the shipping industry the world over, not least the ship recycling sector, where vessels became stranded, steel prices crashed by about USD 150 per LDT, and numerous deals subsequently failed. From those lows, recycling markets have made a strong recovery as Q3 & Q4 came around, finishing the year trading above USD 400 per LDT levels once again and back to the peaks seen at the onset of 2020.
The year had started with a plethora of containers for recycling, only to finish with a remarkable resurgence for the container sector and a focus on Capesize Bulkers, VLOCs and tankers set to come in the New Year, thanks to declining charter rates over the course of Q4 in these particular sectors. There has of also been a steady supply of offshore assets this year, but it is expected to be a year for mostly Dry Bulk and Tankers in 2021, such have been the improvements seen on containers.
So, as another week and volatile year comes to a close, the industry will be looking forward to a 2021 filled with success in combating Covid-19, so that life can resume with some form of normality as far as that is possible, especially given the current times.