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India Shipbreaking Trade Accepts Sanctioned Tankers

Bloomberg Markets •
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Three US-sanctioned tankers have arrived for demolition on India's west coast within the past month, marking an unusually strong start to the year for the ship-breaking industry. These vessels represent a growing trend in accepting so-called dark vessels to combat a persistent market downturn.

India's ship-breaking yards have increasingly welcomed vessels facing international sanctions as scrap prices remain attractive despite regulatory concerns. The trade expansion comes as traditional routes face pressure, pushing operators toward alternative sources of inventory to maintain operations during a challenging period.

The acceptance of sanctioned vessels reflects the industry's adaptation to changing global trade dynamics. With multiple tankers already processed this year, Indian scrapyards appear positioned to continue this trend despite potential regulatory scrutiny from international authorities.