GMS: Hong Kong Convention highlights need for upgrades

This is certainly great news for stakeholders, ship owners, cash buyers, recyclers, and the environment at large, as positive strides at improving industry standards will further serve as a catalyst in the crucial circular world of shipping, we are all in today. Of course, in the short term, there is likely to be a testy period of transition whilst everyone in the industry gets accustomed to the changing regulations, inward formality procedures, and additional documents required when a vessel is being transacted for HKC recycling from here on.

Of note, documentation and procedures might change as the initial phase in period settles. In the interim however, owners / cash buyers seeking to deliver units into the Indian sub-continent ship recycling markets will now have to include IHM reports part I, II and III, along with a ‘Ready for Recycling’ certificate from the relevant flag state, all gift wrapped in the yard specific HKC and ISO certification by various classes. Owners now need to ensure these formalities are timed well with the arrival of the vessel in order to avoid unintended delays and potentially miss beaching tides.

At the Macro end of the spectrum, we continue to see the fallout from the recent attacks in Iran as oil has been the biggest beneficiary of global sufferance as it tumbled over 11% just last week, ending it at about USD 66/barrel. The U.S. Dollar is similarly getting hammered as it reported barely any negative changes against any of the recycling nation currencies (except Turkey). The supply of tonnage at the bidding table on the other hand, seems to be gearing up again as some older units continues to slip into the recycling stream (as confirmed by Bangladesh’s and even India’s waterfronts this week), as freight rates declined over 2.1% and the Cape index declining the most last week at 5.3%. Trade wars continue, major ports return to turning empty for the most part, and economies are bracing for the next thoughtless policy out of the White House.

Meanwhile, prices and demand have slumped over the last couple of months and continue to do so, in the lead up to the HKC even though we have seen few private sales realized through it all, it’s clear that both owners and cash buyers are chasing down a market and will likely continue to. Local steel plate prices are declining at the most convenient locations while flatlining in others and port reports in key locations (except Bangladesh) are turning sour through the rains. As tariff ping pong continues, Trump surprisingly confirmed trade deals being done with India, which should help this market in the near future given the incessant spiral state its plate and currency has been in.

Turkey, we just have nothing left to add other than the same ole’ bad news

… GMS concluded. 

For Week 26 of 2025, GMS Market Rankings / vessel indications are as below: