Global ship recycling has entered its longest sustained downturn in more than 50 years, leaving a record number of ageing vessels in service as shipowners continue to benefit from strong freight rates and attractive secondhand sales, according to maritime industry data.
Clarksons Research estimates that 273 ships, representing 5.5 million gross tonnes (gt) or around 8 million deadweight tonnes (dwt), were sold for demolition during the first nine months of 2026. This was 13 per cent lower than the already weak pace recorded in 2025 and 60 per cent below the average for the 2000s and 2010s.
Less than 0.5 per cent of the global fleet’s tonnage has been scrapped annually for five consecutive years. The rate is lower than during the 2006–08 shipping supercycle and represents the longest sustained ship recycling slump since the early 1970s.
The slowdown has contributed to a sharp rise in the number of older vessels operating worldwide. More than 340 million gross tonnes of shipping capacity is now at least 20 years old an increase of 90 per cent in five years. These vessels account for almost 20 per cent of the global fleet, compared with 12 per cent in 2021.
The ageing trend is also visible among older ships. More than 150 million gross tonnes of vessels are now at least 25 years old, up 75 per cent over five years, while a record 68 million gross tonnes of shipping has passed the 30 year mark.
Tankers and Container Ships Among Ageing Fleets
Tankers have experienced a particularly significant increase in ageing capacity. Around 22 per cent of tanker capacity is now more than 20 years old compared with just 8 per cent five years ago.
In the container shipping sector, the proportion of capacity aged over 20 years has doubled to 16 per cent. This comes as the sector faces an orderbook equivalent to more than 40 per cent of its existing fleet, potentially adding substantial new capacity in the coming years.
By comparison 12 per cent of bulk carrier capacity and 10 per cent of liquefied natural gas (LNG) shipping tonnage is more than 20 years old.
Strong Freight Rates Discourage Ship Demolition
Despite the growing number of ageing vessels the financial incentives for shipowners to sell ships for recycling remain limited.
Scrap steel prices across the Indian subcontinent have increased by 20–25 per cent this year, improving the potential returns from demolition. However strong freight earnings have made continued operations more attractive for many owners.
The ClarkSea Index which tracks earnings across major shipping sectors reached an all time high of $84,951 per day on Friday, according to the report. These elevated earnings have encouraged shipowners to keep vessels in service or sell them on the secondhand market rather than send them for demolition.
Clarksons’ latest recycling market assessment recorded just 8.4 million deadweight tonnes sold for demolition year to date. Buying interest continues in Bangladesh and Pakistan, while Indian recyclers are showing a preference for specialised vessels.
Cash buyer GMS said the final quarter of 2026 was developing into a contest of patience between shipowners and recyclers. Recyclers have the capacity and willingness to purchase vessels, but owners continue to benefit from freight earnings, secondhand market opportunities and the option to delay demolition.
Ageing Fleet Could Increase Future Recycling Activity
The growing stockpile of older vessels could eventually create a substantial supply of ships for recycling when freight markets weaken.
If earnings fall, owners may find it less profitable to operate older ships making demolition a more attractive option. The resulting increase in recycling could help remove ageing capacity from the global fleet.
For now, however strong freight rates and secondhand market demand continue to delay the retirement of older vessels, extending the ship recycling downturn even as the global fleet becomes increasingly aged.