Old ships stay at sea as recycling hits a historic low

Ship recycling activity has remained at its lowest sustained level in more than 50 years, while the number of ageing vessels continues to grow. In the first nine months of 2026, only 273 ships, with a combined gross tonnage of 5.5m gt, were sold for demolition. This was 13% fewer than a year earlier. Reported by Splash 247 .

The global fleet now has more than 340m gt of ships aged 20 years or older. These vessels account for almost 20% of the world fleet, up from 12% in 2021. The problem is especially clear in the tanker sector, where ships over 20 years old account for 22% of capacity, compared with 8% five years ago.

High freight rates make ship recycling less attractive to owners. Scrap steel prices on the Indian subcontinent have risen by 20–25% this year, but the ClarkSea Index reached a record $84,951 per day on October 9. As a result, owners have strong reasons to keep their vessels in service or sell them on the secondhand market.

Buyers in Bangladesh and Pakistan remain interested in older ships, but many owners can afford to wait. If freight markets weaken, the growing number of ageing vessels could bring a much larger volume of ships to the recycling market.

 

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