Maritime Industry Briefing: Sanctioned Tankers Drive Recycling Market While GMS Secures Offshore Extension

## Sanctioned Ships Account for Majority of Tanker Scrapping Deals In a striking indicator of how geopolitical pressures are reshaping the global tanker fleet, sanctioned vessels now account for 58% of all tanker recycling transactions recorded so far this year, according to data from Clarksons Research cited by Splash247. Some 26 sanctioned ships totalling 2.1 million deadweight tonnes (dwt) have been sold for recycling in 2024, an extraordinary proportion that underscores the mounting commercial and operational difficulties facing owners whose vessels have been blacklisted by Western authorities. The trend is particularly notable given that overall demolition activity remains near historic lows, driven by persistently strong freight rates that have incentivised owners to keep compliant tonnage trading rather than send vessels to the breakers. The data suggests that sanctions — primarily linked to vessels involved in transporting Russian, Iranian, and Venezuelan crude — are effectively forcing these ships out of the active fleet, even as the broader tanker market remains buoyant. With limited access to insurance, port facilities, and financing, sanctioned vessel operators face a narrowing set of options, and recycling is increasingly becoming the path of least resistance. The concentration of sanctioned tonnage in the demolition market also raises questions about the longer-term composition of the global tanker fleet and the pace at which shadow fleet vessels will be retired versus replaced. --- ## Gulf Marine Services Wins Contract Extension in GCC Region On the offshore support side, UAE-headquartered Gulf Marine Services (GMS) has announced a contract extension for one of its small-class self-propelled, self-elevating support vessels operating in the Gulf Cooperation Council (GCC) region, Splash247 reports. The extension was awarded by a major national oil company in the Middle East under an existing contractual framework. While GMS did not disclose the specific client or the financial value of the award, the deal reflects continued demand for specialised offshore support capacity in the region as Gulf energy producers maintain elevated upstream activity levels. GMS operates a fleet of self-elevating support vessels primarily serving the oil and gas sector across the Middle East and, to a lesser extent, European waters. Securing repeat business and extensions from established national oil company clients is a key element of the company's strategy to maintain high fleet utilisation and revenue visibility. The extension adds to a series of contract wins GMS has reported in recent periods, reinforcing the firm's position as a leading provider of offshore support services in the GCC market.