Global supply chain disruptions are impacting ship recycling
Older ships’ decommissioning is being negatively affected by the persisting supply chain disruptions.
In its latest weekly report, Best Oasis (www.best-oasis.com), one of the leading cash buyers of ships globally, said that “Dubai recently experienced unprecedented flash floods, causing significant disruptions and challenges for the city known for its robust infrastructure and meticulous urban planning.
As the community grapples with the effects of these severe weather events, there is a strong hope for a swift and effective recovery. Efforts are undoubtedly underway to restore normalcy as quickly as possible, and the resilience of Dubai’s residents and authorities is expected to shine through during this recovery phase”.
Meanwhile, “the ongoing IranIsrael conflict might significantly reshape both the shipping and ship recycling industries by disrupting key routes like the Red Sea.
This could prompt shipping companies to withdraw from the region, thereby affecting global supply chains and potentially raising consumer prices. Furthermore, naval actions aimed at securing these routes could shift shipping patterns and delay the decommissioning of older ships, impacting the availability of vessels for recycling. With the increase in operational costs and insurance premiums, shipowners may hesitate to recycle ships, thus decreasing the volume entering the recycling market.Source: hellenicshippingnews.com