ONLY 45 dry bulk ships were recycled between January and August 2024 – a 42 per cent drop year on year and the second-lowest level in 16 years, according to trade group Bimco.

A report released by the international organisation for shipowners, charterers, shipbrokers and agents on Wednesday (Sep 18) pointed out that the total capacity of scrapped dry bulk ships in the period was 2.5 million deadweight tonnes, or only 0.2 per cent of the fleet.

An ageing fleet may bring challenges to the sector’s decarbonisation.

Bulk ships carry iron ore, coal, grain, salt, aluminium, copper ore and other dry cargo in huge volumes without packing or packaging.

“Recycling declined in all segments, with Capesize and Supramax experiencing the steepest fall, at almost half of last year’s figures,” said Filipe Gouveia, a shipping analyst at Bimco.

The trade group classifies the dry bulk fleet – using Clarkson Shipping Intelligence’s methodology – into segments of Handysize, Supramax, Panamax and Capesize.

Capesize bulk carriers have a deadweight tonnage of over 100,000; Panamax carriers have a deadweight tonnage of 70,000 to 100,000; Supramax carriers, 45,000 to 70,000; and Handysize, 10,000 to 45,000.  High freight rates and robust demand have delayed the recycling of older ships, noted Gouveia.

“Over the past three years, demand shocks contributed to stronger-than-anticipated demand. Sanctions on Russian coal as well as rerouting away from the Red Sea and the Panama Canal all contributed to increased sailing distances, keeping ships at sea for longer,” added the analyst.