Eid al-Fitr has arrived to greet the world's ship recycling markets this week, and as is tradition, it came bearing the gift of silence, reports cash buyer GMS. “From Chattogram to Gadani,
Eid al-Fitr has arrived to greet the world's ship recycling markets this week, and as is tradition, it came bearing the gift of silence, reports cash buyer GMS. “From Chattogram to Gadani, Alang to Aliağa, the holy festival has pressed pause on an industry that was already beginning to feel the compounding weight of war, currency volatility, and a stubborn absence of fresh tonnage offerings.”
The ongoing conflict in the Middle East, which has now stretched into its third week following the U.S.-Israeli military campaign against Iran, continues to send tremors through global energy and freight markets in equal measure.
Brent crude briefly pierced USD 119/barrel on Thursday following Iranian retaliatory strikes on Qatar's Ras Laffan LNG facility, before retreating to settle at USD 108.65/barrel after Netanyahu signaled Israel was helping reopen the Strait of Hormuz.
“The week's close above USD 100/barrel for the sixth consecutive session shows just how embedded this new price floor has become,” says GMS.
“For ship recyclers, the arithmetic of this war continues to deliver perverse outcomes. Higher oil prices logically translate into higher freight earnings for trading vessels, which in turn means owners are less inclined to sell tonnage for recycling when their ageing
Content Original Link:
" target="_blank">
