Gas Carrier Scrap Sales Reach Record Levels
The ship recycling market in 2025 has surged, with gas carrier sales for demolition already reaching an annual record, while nearly 30% of the expected yearly total is still pending.
According to Clarksons Research, around 0.8 million dwt of gas carriers have been sent for demolition this year. The main driver is weak market conditions, which have led to the scrapping of several steam turbine LNG vessels.
“This trend has been ongoing for the past twelve months, and we expect it to continue, as demand for outdated LNG steam turbine vessels remains weak, with many older units unsold and laid up,” noted brokerage firm Gibson in its latest update.
Currently, gas carriers destined for recycling yards in South Asia remain virtually the only source of business for shipbreaking companies.
“At present, no other segment apart from LNG appears to be opening up for recycling,” highlighted cash buyer Tirana in its weekly report. Clarksons analysis shows that the container sector, in contrast, is heading toward a record-low scrapping volume in the past 20 years.
Clarksons Research further emphasized that sentiment in the recycling market has clearly turned negative due to:
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ongoing currency volatility,
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recent corrections in subcontinent demolition rates,
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declining steel demand in domestic markets,
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limited tonnage supply.
