27 December 2017

GMS Market Commentary on Shipbreaking in Week 51 - GOOD CHEER SPREADS!

As the holiday season approaches and Ship Owners and Brokers take time off to spend with their loved ones, an imminently quieter few weeks ahead are perhaps rather welcomed, given what have been a frantic few weeks of recycling activity, with much of the (recycling) focus falling on the wet and offshore sectors of late.

Moreover, even though the markets recently witnessed a flurry of early-to-mid 90s built Capesize bulker sales from the Korean market (ones that were coming off government charters and being sold for scrap), it has been remarkably quiet on the dry (and container) recycling fronts this year as freight rates in both these sectors have made decent recoveries.

The general feeling is that the pain being felt in the wet and offshore sectors is set to last a little longer and even going into 2018, an expectedly large volume of VLCCs (those on storage and otherwise) seem destined to come under the torch. In fact, this year alone, the markets have seen 14 VLCCs and about 25 Aframax tankers committed for scrap so far, most of which have ended up in Bangladesh.

On the industry front, given the large number of tankers sold for recycling this year and a slowdown on the dry side as well, it has been an exceptionally challenging (and frustrating) period for Gadani recyclers who have found themselves regularly paying over the odds (often as the highest placed sub-continent market), just to secure any of the working (dry) units that have made it for sale thus far.

In fact, for the past 3-4 months, there have been whispers that the Pakistani market will open up for tankers again, albeit with stricter gas free for hot works standards (similar to those India and Bangladesh). However, discussions / meetings with the Pakistani government and PSBA are still ongoing as to how soon local authorities will permit tankers into the local market once again, after the tragic accident which cost scores of lives earlier in the year.

Source: steel guru. 27 Dec 2017

26 December 2017

EMSA studies two hazardous substances on ship-recycling

EMSA issued a study on the two hazardous substances, PFOS and HBCDD, included in the annexes of regulation (EU) 1257/2013 on ship recycling, aiming to close knowledge gaps regarding requirements in EU Ship Recycling regulation.
The EU Ship Recycling Regulation, that entered into force on 30 December 2013, aims at facilitating early ratification of the Hong Kong Convention 2009, both within the EU and in other countries, by applying controls to ships and ship recycling facilities. It aims to ensure that vessels are recycled in EU-approved facilities worldwide.

EU legislation sets additional requirements compared to the Hong Kong Convention for the Inventory of Hazardous Materials (IHM), by including the substances Perfluorooctane sulfonic acid (PFOS) and Hexabromocyclododecane (HBCDD) in the list of hazardous substances.

PFOS

As explained, firefighting foam is expected to have the highest concentration of PFOS and the most relevant material to analyse and check for inclusion in the IHM Part I.

Protective coatings for fabrics such as carpets, textiles, upholstery and electronics such as semiconductors not integral to ship in operation, is also relevant, however falling out of scope with regards to IHM Part I in general. Paint and coatings may be relevant but it is not expected to find PFOS in paint and coatings because other surfactants are probably used and it is not detected in paint in any samples looked at (inventories in 21 ships).

For PFOS in firefighting foam, global, regional and national legislation as well as shelf life need to be taken into consideration.

After 2010, PFOS containing firefighting foams is less likely on board vessels at all, unless vessels built in China, where it at that time and still is legal to produce and sell. Having in mind that the reporting limit is set to 0,001%, incomplete emptying of tanks and hoses, previously holding PFOS containing foam concentrate, may contaminate new non-PFOS containing foam above the threshold level, hence sampling and analysis is recommended.

Sampling should in general follow the EMSAS’s Best practice guidance on the inventory of hazardous material (2016) and the IMO resolution MEPC.269(68) Guidelines for inventory of hazardous material. Health, safety and environmental (HSE) aspects during sampling should be focused on proper ventilation, especially if working in confined spaces, use eye protection and gloves and have available safety data sheets and eye wash bottles.

The Basel Convention technical guidelines for the environmentally sound management of wastes consisting of, containing or contaminated with PFOS, its salts and PFOSF, list two methods for destruction and irreversible transformation:

- Cement kiln co-incineration and
- Hazardous waste incineration.

Destruction and irreversible transformation methods applicable for the environmentally sound disposal of wastes with a content of PFOS, its salts or PFOSF at or above 50 mg/kg.

HBCDD

HBCDD in polystyrene foam (EPS and XPS) is the most relevant area of use. HBCDD is found in textiles (carpets) in IHM’s and can be found on board all vessels types and should in particular be considered in the IHM Part I for insulation used in the walls and ceiling of cold provision rooms.

Special attention is recommended to insulation on board reefers, insulation in refrigerated containers and tank insulation of LPG, LEG and LNG cargo tanks.

As for PFOS, sampling should in general follow the EMSAS’s Best practice guidance on the inventory of hazardous material (2016) and the IMO resolution MEPC.269(68) Guidelines for inventory of hazardous material. Particular HSE aspects have not been identified for sampling, as the most relevant is polystyrene foam.

No standards exist for analysis of HBCDD. Existing standards used in IHMs is for brominated flame retardants in general and it is uncertain to what extent these standards are quantitative for HBCDD, and they cannot discriminate between the most common “types” of HBCDD.

As described for PFOS, the same methods listed by Basel Convention are applicable to HBCDD as well.

Link of the study repot:
https://www.green4sea.com/wp-content/uploads/2017/11/EMSA-Study-on-the-two-hazardous-substances-PFOS-and-HBCDD-included-in-the-annexes-of-regulation-EU-1257.2013-on-ship-recycling-2017_11.pdf 

Source: 22 November 2017

Iconic USS Ranger Dismantled

A two-year project to dismantle and recycle the decommissioned U.S. Navy vessel USS Ranger (CV-61) has recently concluded.

(Photo: EMR)

Ordered in 1954 and commissioned in 1957, the Ranger was the first U.S. carrier vessel built as an angled-deck ship from inception. She served in the Pacific, the Indian Ocean and the Persian Gulf, and earned 13 battle stars for her service in the Vietnam War. During her 37 years of service, she also appeared in blockbuster films such as Top Gun and Star Trek IV: The Voyage Home.

After her arrival on July 12, 2015, the Ranger was dismantled for recycling in Brownsville, Texas, at a metal recycling yard operated by International Shipbreaking, part of the EMR group. The dismantling project, which has taken just over two years, has recovered and recycled over 56,000 tons of material from the Forrestal-class “supercarrier”, with most of the recycled metal recovered sold to be melted down at domestic mills. Some of the repurposed new metals will be used in U.S. Department of Defense contracts.

Remaining recycled materials from the USS Ranger will also be given a new lease of life, as over five tons of historic items from the ship have been donated to the USS Lexington Museum in Corpus Christi, Texas, for display and preservation.

The dismantling project was completed on November 1, 2017, 34 years to the day since a fire broke out inside USS Ranger Main Machinery Room 4 (MMR4), claiming the lives of six U.S. Navy sailors and injuring 35. A moment of silence was held at 9:50 a.m. by the crew at the yard as the final section of the USS Ranger was removed to honor all those who served on the ship. All artifacts from the MMR4 Control Room have been donated to the USS Ranger Association for use in a museum exhibit honoring the six servicemen who perished during the 1983 fire.

The recycling operation has also enabled veterans and military enthusiasts to own a piece of naval history, with a USS Ranger commemorative dog tag being minted from brass and copper recycled from the mighty ship. Engraved flight deck sections are also available for purchase on the company’s eBay store.

Chris Green, International Shipbreaking COO, commented, “The USS Ranger has a distinguished record of service to our country, and we were honored to give her the respectful send off she deserves. We have a long history of dismantling military vessel, and have invested heavily in our Brownsville ship-breaking facilities to ensure our recycling processes are safe and environmentally sound. Even though the Ranger’s journey as a US Navy vessel has come to an end, we’re proud that she will continue to serve her country and live on to honor her brave crew.”

International Shipbreaking has recently taken delivery of another distinguished military vessel, the USS Independence, following a contract win with the U.S. Navy to dismantle and recycle the aircraft carrier.

Source: marine link. 22 November 2017

Tanker delivery/newbuilding profile causes problems

This year is on track to be the second largest 12 months for dirty tanker deliveries on record, behind 2009, according to an industry note from McQuilling Services.

Through the first 10 months of the year, the consultancy recorded 133 DPP tankers entering the market, compared to 84 over the same period in 2016. At the same time, 54 vessels exited the trading fleet, bringing the net growth to 79 ships year-to-date (end October).

This represents an acceleration of deletions when compared on a year-on-year basis to both 2016 and 2015.

Over the final two months of 2017, McQuilling expected another 32 DPP vessels to join the fleet, while four are on track to be removed. In total, the DPP fleet is expected to grow by 104 vessels or 4.6% in 2017, representing the highest year of growth on a net basis since at least 2000.

Within the VLCC sector, 44 vessels have hit the water, while about 22 were removed from the trading fleet. The average age of the departing ships was 19.7 years. The deletion activity was evenly split with 11 vessels sold for demolition and 11 converted to storage operations.

Through the remainder of this year, nine more VLCCs are set to join the fleet, while just one  is likely to be removed.

The Suezmax fleet has experienced the greatest net growth year-to-date with 52 additions and 11 deletions, or a net total of 42 ships. Frontline and Anangel Shipping were major contributors taking delivery of six and four Suezmaxes, respectively.

Regarding those vessels removed from the fleet, the average age was 21.4 years and just one ship , ‘Front Ardenne’ was sold for conversion, while the remaining vessels were sold for demolition. The last two months of 2017 are expected to bring 12 more ships into the market, while one vessel is projected to be deleted.

Turning to dirty Aframaxes, 33 vessels have joined the fleet, while 19 were removed since the beginning of the year. On a net basis, McQuilling forecast another nine vessels will join the fleet before the end of this year, which would meet its full year expectations of 44 additions and 21 deletions. The 2017 expectations for Panamax fleet growth were fulfilled with three more ships on the water this year, while two were sold for demolition.


Regarding the clean segment, 64 tankers were added to the fleet, while just 16 ships exited, resulting in a net growth of 48 units year-to-date. Over the same period last year, net fleet growth was 38 vessels with 48 additions and just 10 deletions.

Full year fleet growth is likely to remain above the 2016 figures, as another 26 deliveries and 12 deletions are expected through the final two months of 2017.

LR fleet growth has also trended above last year’s figures with 43 additions and four deletions year-to-date, a net growth of 39 vessels, which compares to 37 over the same period of 2016.

Of the 43 deliveries this year, 30 have been LR2s and 13 were LR1s, while the four deletions have been split evenly between the two sectors. Over the November/December period, another nine LR2s will join the fleet and three will exit, while the LR1 fleet is on track to add another six vessels.

As for MRs (excluding chemical tankers), a net fleet growth of 11 ships is forecast, as MR2s expand by 14 units, while the MR1 fleet is on track to fall by three units this year. Some 18 MR2s were delivered year-to-date, while 10 ships were reported sold for demolition or conversion. Over the same period, three MR1s were delivered and two exited; however, McQuilling said it expected another four to be removed before the year ends.

Year-to-date, 165 tanker orders were placed with 54% being in the DPP segment. The VLCC sector saw 47 vessels ordered through the first 10 months of 2017, which is more than double seen over the whole of 2016 (21 vessels).

For Suezmaxes, 18 vessels were contracted, including12 taken by the Chinese Bank of Communications. Newbuild contracting in the Aframax sector also remained healthy with 25 orders through October, compared to 23 orders placed in the whole of 2016.

On the clean side, 12 LR2s were ordered, while no activity was witnessed in the LR1 newbuilding market year-to-date. Most of the clean ordering activity involved MRs with 52 MR2s and 11 MR1s contracted, which compares to 45 over the whole of 2016.

October was an interesting month, as no vessels >27,500 dwt from the DPP and CPP sectors were ordered. McQuilling said that we have not seen the end of newbuild contracting for this year with a potential to increase over the winter months, on the back of historically low asset prices, which presents attractive investment opportunities, as well as upcoming regulatory constraints.

The consultancy also forecast that in 2018, there is likely to be a slowdown in average inventory net fleet growth to 3.3% for the DPP sector, with 139 deliveries and 103 deletions projected; however, this is still well above the historical average of 2.3%.

On this basis, freight rate weakness is likely to persist next year, as supply growth out paces demand. Beyond this point, an accelerated deletion profile is on track to negatively pressure fleet growth further, dropping to 1.6% in 2019, helping to re-balance markets, McQuilling said.

For the CPP sector, average net fleet growth, this year, is on track to remain relatively flat when compared to 2015/2016, at 2.5%. In concert with the DPP sector, net fleet growth is forecast to fall beyond 2017 as higher deletions are forecast on the back of an ageing MR fleet.

In 2018, net fleet growth is projected at 1.3%, the lowest level seen since 2002, which is on track to provide some upward pressure for freight rates.

Additional support will stem from a significant decline in the growth of the chemical tanker fleet, which is projected to expand by 5.1% in 2018, well below the historical average of 11.9%. This comes after 10.4% growth projected for this year, McQuilling concluded.

Source: tanker operator. 24 November 2017

Demolished fishing vessel at Kasimedu harbour sealed

CHENNAI: A fishing vessel that was illegally demolished at Kasimedu harbour has been sealed by government officials after a report appeared in these columns on Saturday last.

South Indian Fishermen Welfare Association president K Bharathi said that on the same day the report appeared, a team of officials covered the demolished vessel with a tarpaulin and put a seal on it. The report had the desired effect stopping further damage to the environment, he said.

The association also filed a complaint with the state environment department last week. The environment department, in a letter, instructed officials to inspect the place to check the damage caused by the demolition. In case of violations of the Coastal Regulation Zone Rules 2011, necessary action should be taken, the letter said. The action taken report has to be sent to the complainant and the director of environment department, Tamil Nadu, it further said.

Fishermen in the area said another tug and a fishing vessel, which are waiting to be broken down, remain anchored at the harbour. The authorities have to seize these two boatsbefore the demolition begins, they said.

The Kasimedu fishing harbour was originally a ship repairing yard for the Coast Guard. With the increase in the number of boats, fishermen requested the authorities to allocate space which led to the yard being marked as a fishing harbour, a fisherman said.

Fishermen are now worried that the demolition of ships here will set a wrong precedent and encourage others wanting to dispose of their vessels. Already the volume of their catch is going down due to pollution and releasing waste from a condemned ship will further pollute the environment. All fishermen are against allowing demolition of ships in the harbour, said Fishermen Murpokku Sangam president Jagadeesan.


Source: times of india. 17 November 2017

USS Kitty Hawk veterans devastated the aircraft carrier is headed for the scrapyard

When the USS Kitty Hawk Veterans Association held a reunion in Nashville at the end of October, one thing was on everyone's mind: The ship was going to scrapped despite years of efforts and fundraising to turn the aircraft carrier into a museum.

Naval Sea Systems Command spokeswoman Colleen O'Rourke told the Kitsap Sun in October the Kitty Hawk was headed for the scrapyard after years of being held in reserve status at the Inactive Ship Maintenance Facility in Bremerton. This was the Navy's plan all along, ever since the ship was decommissioned in 2009, although it had not yet been officially announced until that point.

The former Kitty Hawk sailors felt blindsided by the news.

They had previously believed they would at least get a chance to save the aircraft carrier from the fate of being towed to the scrapyard, which is what happened to the last three inactive aircraft carriers moored in Bremerton.

The association thought it was only "a matter of time" for the Kitty Hawk's fate to be decided after the newest nuclear-powered aircraft carrier, the USS Gerald R. Ford, joined the fleet on July 22, said Jason Chudy, USS Kitty Hawk Veterans Association membership coordinator and webmaster.

But by the time the ship was stricken from the Naval Vessel Register on Oct. 20 following the Ford's commissioning, the Navy had already long since already decided the ship's fate.

It is unlikely that decision will change, said Navy Office of Information spokesman Lt. Seth Clarke.

"Per current Navy policy, only those vessels that are pending decommissioning and determined to be historically significant or have a high probability of donation are considered for donation," Clarke said.

Clarke said the Navy is not required to make ships available for donation.

The Navy can dispose of ships in a variety of methods, including scrapping them, releasing them to be turned into museums, selling them to foreign nations, transferring them to another government agency or using them as target practice.

The method of a ship's disposal is determined through a complex process. The Chief of Naval Operations and the Secretary of the Navy ultimately decide which method is the "most advantageous to the U.S. Navy," Clarke said.

Chudy said the Kitty Hawk veterans believed the ship would become available for donation after the Ford joined fleet, and then they would be able to submit an application to obtain the ship to turn it into a museum.

"We were patiently looking for that," Chudy said.

But "then boom, instead being of released, it's going to scrap," said USS Kitty Hawk Veterans Association President Jim Melka.

Since 2001, when the associated decided to pursue making the Kitty Hawk into a museum, the organization has raised more than $5 million of donation pledges, Melka said.

"It came as a very big surprise," Chudy said. "We'd seen nothing, heard nothing leading up to this decision. We didn't hear anything from them about scrapping."

Melka heard the news about the ship's fate when he received a phone call at 10 o'clock the night before the reunion.

"It was devastating," he said.

The next day, Melka had to break the news to the former Kitty Hawk sailors who gathered in Nashville for the reunion.

"It was heartbreaking," Melka said. "I had to explain to them what happened and we didn't have any answers."

The Independence and the Kitty Hawk in 2015 at Naval Base Kitsap-Bremerton. The Independence has already been scrapped, and the Kitty Hawk will follow.

Some of the ship's original crew members were in tears when they heard the news, Melka said.

Melka, who served aboard the aircraft carrier from 1965 to 1967, said he grew up on the Kitty Hawk.

"I was 17 years old. I got off just before I turned 21. It was a great ship. I learned a lot. I grew a lot. I just had a good time while I was on the ship," Melka said.

For former Kitty Hawk sailor Chudy, who served aboard from 2006 through the ship's decommissioning in 2009, the news was all too familiar.

"It was kind of a double whammy as a former Independence sailor, which was last ship to be towed to Brownsville," Chudy said. "It's disheartening to know the same thing is what's happening to the Kitty Hawk."

The Kitty Hawk vets aren't planning on giving up on the ship quite yet. The association is encouraging "all former crew members, friends and family, really anyone who has an interest in seeing this historic ship turned into museum," to write to their representatives in Congress and Navy officials, Chudy said.

"We understand that it might be a losing battle, but we don't want to give up without a fight," Chudy said. "We'll put our blood sweat tears into effort to save ship. Once every avenue has been exhausted, we'll move on from there."

If the association is unable to turn the Kitty Hawk itself into a museum, Melka and Chudy said the veterans would consider building a land-based museum.

"There are no Forrestal or Kitty Hawk carriers left." Chudy said. "Most have been scrapped or sunk. We can't let these ships fade into history."

Some of the Kitty Hawk's notable moments in history include tests to determine aircraft carrier suitability for the U2 high-altitude reconnaissance planes in 1963 and the ship's collision with a Russian submarine in the Tsushima Strait in the Sea of Japan in 1984.

A race riot aboard the Kitty Hawk in 1972 that ended with almost 60 injured men "initiated reforms in the Navy culture," according to the ship's history.

During the ship's active service, the Kitty Hawk participated in combat operations during wars in Vietnam, Afghanistan and Iraq. The Kitty Hawk was the fleet's only permanently forward-deployed carrier in Yokosuka, Japan, from 1998 to 2008.

Crew members aboard the USS Kitty Hawk formed the word "sayonara," when the U.S. aircraft carrier departed a port near Tokyo for the final time in 2008.

The Kitty Hawk was the last active service navy aircraft carrier to be powered by an oil-fired steam plant. Today, all 11 active service aircraft carriers are nuclear-powered. Those ships will likely never be turned into a museum because they are torn-up too much when the reactor is taken out of them during the decommissioning process.

"There's none better than the Kitty Hawk for this honor. Kitty Hawk is the only Cold War era carrier left to be turned into the museum," Chudy said. Since it's unlikely the newer classes of nuclear-powered ships will be released to be turned into museums, "It's the last hope."

Five former aircraft carriers have been turned into museums. The USS Midway, which served from 1945 to 1992, was the last aircraft carrier turned into a museum in San Diego, California.

There are currently no other aircraft carriers available for donation hold. Chief of Naval Operations Adm. John Richardson decided to re-designated the former USS John F. Kennedy from being eligible for donation hold on Sept. 26, to be dismantled as well, according to Navy spokesman Clarke.

Clarke said Adm. Richardson made this decision due to the "lack of a viable donation application," since the ship was first made available for donation in 2009.

The former Kennedy's page on the Naval Vessel Register has not yet been updated to reflect this decision.

To date, the Navy has donated 48 vessels to be used as museums and memorials across the country to various non-profit organizations and states.

Source: kitsap sun. 28 November 2017
http://www.kitsapsun.com/story/news/local/2017/11/28/uss-kitty-hawk-veterans-devastated-aircraft-carrier-headed-scrapyard/836475001/

Surge in number of accidents in Bangladesh shipbreaking yards

Until September the NGO Shipbreaking Platform had observed a decrease in the number of accidents in the shipbreaking yards in Chittagong, Bangladesh. Now however, the accident rate for the three first quarters of 2017 has surged with 8 injuries and 6 deaths recorded in ten separate incidents in the last two months alone.

On 23 October, Jalal, who worked as a cutter man, died struck by a cable at Arafin Enterprise, the yard where the product tanker LOBATO, owned by Petrobras, is currently being scrapped. Despite early warnings to the Brazilian government, the vessel was illegally exported from Brazil for dirty and dangerous scrapping on the beaches of South Asia and arrived in Chittagong in October. Shipbreaking worker Khalil died while working on an oil section of the Indonesian-owned tanker ECHO, beached at Ferdous Steel shipbreaking yard. One more worker was injured in that accident. Mizan, employed by Fahim Enterprise shipbreaking yard, lost his life on 14 November. He fell from the ship LABRI, sold for breaking by the Greek Polys Haji-Ioannou Group, after a fire broke out on the upper deck. Four more workers, who are now supposedly receiving treatment in the BSBA Hospital, suffered injuries due to a fire at Tania Enterprise shipbreaking yard. Moreover, during a nightshift on 4 December, Mojammel suffocated from inhaling toxic gases and then fell, dying on the spot. He was working at the SN Corporation yard on the ship INOX, owned by the Hong Kong-based HNA Group International. According to local sources, Mojammel and his colleagues were oddly sent to start breaking the vessel just a few hours after its beaching.

A local newspaper in Chittagong further revealed that the body of a worker, Harun Rashid, was found lifeless in a pond close to the PHP shipbreaking yard. Harun was a permanent staff member of PHP and was working as cutter helper. According to the attendance register, he was present and on duty on the day he was found dead. Harun’s cause of death has not yet been cleared by the police and, despite having paid a lump sum to Harun’s family, PHP’s representatives are silent about the incident. Still at PHP, another worker suffered an injury to his left leg and has spent the last three weeks in the BSBA Hospital for treatment.

Details on the remaining 2 injuries and the 1 death at the shipbreaking yards are still unclear.

In October, two major accidents also occurred in the steel re-rolling mills that are connected to the shipbreaking yards and where the steel from the ships are re-rolled into steel bars. According to the Bangladesh Insitute of Labour Studies (BILS), on 10 October 4 workers died in GPH Ispat, and less than a week later an accident at SARM re-rolling mill killed 1 worker and injured as many as 9.

“The working conditions in all the Chittagong shipbreaking yards are deplorable. Claims that the situation in the yards has somewhat improved are misleading: workers are still exposed to enormous risks and are killed because of the lack of basic safety procedures and infrastructure”, says Muhammed Ali Shahin, local contact of the NGO Shipbreaking Platform.

Ship owners that sell their ships for dirty and dangerous breaking are now also being brought to court. On Sunday, The Guardian published an article exposing the human costs of shipbreaking in Bangladesh. Mohamed Edris, who also worked at Ferdous Steel, was severely injured in 2015 while cutting the EURUS LONDON, owned by Zodiac Maritime, and is now seeking compensation in the UK courts from the shipping company. It is the first time that an injured worker demands compensation from a ship owner directly. Zodiac Maritime took the commercial decision to recklessly sell the EURUS LONDON to a beaching yard with the only aim of making a maximum profit, thus consciously neglecting the human rights abuses that shipbreaking in Bangladesh entails. This case could set a precedent for other workers who want to bring the ultimate profit-makers of dangerous and polluting practices to justice.

So far this year, 51 out of the total 152 ships that have been beached in Chittagong are owned by European companies. Zodiac has continued to sell its ships to Bangladesh, despite the pending legal case against them, demonstrating that they have no consideration for causing harm as a result of their dirty business. Other big companies, such as Teekay, Berge Bulk and Costamare, have also unscrupulously sold ships to the Chittagong beach this year.

Source: hellenic shipping news. 07 December 2017

Euro focus to bring ship recycling leaders to Hamburg.

Breaking with tradition, the 10th TradeWinds Ship Recycling Forum is moving to a European venue for 2018 TradeWinds announced today.


Explaining the move, conference director, Jon Chaplin said: "Developments over the next 12 months are critical in determining how EU shipowners recycle their ship and offshore vessels. For this special 10th anniversary edition, we have decided to hold these important discussions at a major European maritime hub."


Popular with ship recyclers from the five largest demo destinations of India, Bangladesh, Pakistan, China and Turkey, TradeWinds' Ship Recycling Forum is widely considered to be the most important annual gathering of global ship recycling in the world. Regular attendees represent cash buyers, ship recyclers, ship owners S&P brokers, insurance underwriters, environmental pressure groups, regulators, technical consultants and class societies.


With clean recycling topping shipowners regulation wish list, the timing of the forum could not be better. Chaplin added: "Hamburg was chosen so that European-based owners can have their recycling questions answered on the doorstep. Anyone with an interest in ship or rig recycling, if only to dispose of a single vessel, will benefit from attending."

The Forum is taking place with the support of key event sponsors, Priya Blue / Best Oasis and Class NK, with more to be announced.

The 10th TradeWinds Ship Recycling Forum takes place 7-8 March 2018 at the Atlantic Kempinski Hotel, Hamburg. For more information: info@tradewindsevents.com

Source:

https://www.mynewsdesk.com/tradewinds-events/pressreleases/euro-focus-to-bring-ship-recycling-leaders-to-hamburg-2310529

Dr Anil Sharma featured in Lloyd’s List’s Top 100 Most Influential People in Shipping

For the 7th year in a row, Dr Sharma receives acknowledgement for his contribution in the maritime community and his special focus on Green recycling. Dr Anil Sharma, President & CEO of GMS, ranked at number 63 in the annual Lloyd’s List top 100 of the Most Influential People in Shipping for 2017. He has a Doctorate degree from a US Business school and has dedicated the last 25 years of his career building the GMS brand across the world. Today the company operates from 8 countries: USA, UAE, Greece, Germany, Japan, Singapore, China & South Korea and through several representative offices in Turkey and South Asia. The company continues to expand rapidly with the addition of new offices almost every year.

lloyd-s-list_89093.png 

GMS is the world’s largest buyer of ships and offshore assets for recycling and was founded by Dr Sharma in 1992, in Cumberland, USA.

Dr Sharma commented that “I am truly honoured to receive acknowledgement from a high profiled media outlet such as The Lloyd’s List for the 8th time in a row! Being featured in their Top 100 List as a pioneer in Green recycling in the shipping industry, enhances the immense responsibility I feel to serve our clients in the most efficient and meaningful manner whilst continuing our Green Team’s work investing in the education and support of the South Asian ship recycling yards and their workforce. In an industry mired with misleading and biased information, GMS has done its best to bring transparency, facilitate dialogue, promote change and encourage responsible ship recycling. We are proud to be part of an industry that has evolved and adds true value to the shipping fraternity. I personally thank all of our clients for their trust and custom over the past two decades and I am looking forward to another year of evolution and leadership!”

Source: steel guru. 20 December 2017

BOI hits P617B in investment approvals for 2017, highest in 50-year history

MANILA, Dec. 19 – Trade Secretary Ramon Lopez, Chairman of the Philippine Board of Investments (BOI), announced the unprecedented P616.7 billion in investments approvals, the highest in the agency’s 50-year history. The figure is up 39.5 percent from the P442B recorded in 2016; and 23.5 percent over the P500 billion targeted at the start of 2017.

The BOI's previous highest approved investment level was in 1997, recording P570.1 billion mainly from investments due to the privatization and deregulation of public utilities (water supply and telecommunications).

The record-breaking figure comprised 426 projects, up 13 percent from 2016’s 378 projects.  All told, these projects will generate around 76,065 jobs upon full operations, up 12.5 percent from 2016's 67,634 jobs.

“This validates business confidence in President Rodrigo Duterte’s economic programs to ensure inclusive growth and shared prosperity for the country. The influx of investments is definitely steamrolling, as we are expecting sustained higher investments for the next five years," Lopez said. 

“The momentum of our 6.9 percent GDP growth in the third quarter and 6.7 percent overall growth for the first nine months have definitely carried over in the fourth quarter, investment-wise and further boosted with the frenzied economic activity given the holiday season,” he explained. 

At the start of the year, BOI targeted an ambitious investment level of P500 billion by the end of 2017, or “P500 billion for BOI@50,” to mark the agency’s 50th founding anniversary.

“We were happy then to just reach our P500 billion target. But to blitz past the P600 billion mark is something we are definitely ecstatic as this only proves the continuing confidence of the investors in making their business grow in the Philippines," added Lopez.

According to Trade Undersecretary and BOI Managing Head Ceferino Rodolfo, the surge in investments for the year are mainly due to the designation of focused strategic sectors under the 2017 Investments Priorities Plan (IPP), infrastructure, and power projects; and the strong growth of domestic demand.

With manufacturing as listed in the 2017 IPP, investments were noted in key manufacturing industries such as cement, sugar, and petrochem.

Investments in the manufacturing sector increased more than three-folds to P96 billion in 2017 from only P27 billion in 2015. The figure is also 95 percent higher than the P49.259 billion reported in 2016.

The manufacturing sector is the third top performing sector for 2017. Power and energy projects remain as the top performing sectors with P268.168 billion in approved investments, followed by infrastructure and PPP projects with P127.658 billion. Real estate and mass housing projects ranked as fourth top performing industry with P86 billion while transportation and logistics came in fifth with P15.909 billion.

“The increase in infrastructure projects this year supports the BOI’s push for the growth in economic activities outside Metro Manila and the ‘Build, Build, Build’ or the massive infrastructure program of the administration,” Rodolfo said.

“While BOI incentives are directed for strategic domestic projects, a number of foreign investment projects also registered with BOI,” he said. 

Japan is the number one source of foreign investment projects for the year with P8.864 billion, mainly in green ship recycling, chemicals, glass manufacturing, among others. This was followed by Singapore with P3.497 billion, Australia with P1.996 billion, British Virgin Islands with P1.084 billion – all in renewable energy, and The Netherlands with P1.074 billion (manufacturing).

Following the deliberate effort to disperse activities outside Metro Manila, a decrease by 53 percent in investments approval were noted in National Capital Region (NCR). Meanwhile, a 65 percent increase in investments were recorded in non-NCR areas.

Region IVA (CALABARZON) topped as the number one destination for BOI-registered investments with P294.6 billion or 48 percent share of the total approved investments. Region III (Central Luzon) followed with P123.3 billion while investments in NCR came only as third with P44.3 billion. Substantial investments were noted in Region 1 (Ilocos Region) with P39.6 billion and Region 7 (Central Visayas) with P35.6 billion.

Significant increases in investments were noted in the regions. For example, investments in Region II (Cagayan Valley) reached P14.011 billion or a P172 percent increase from only P5.151 billion recorded in 2016. (BOI Infocomms)

Source: Philippine International Agency. 19 December 2017

25 December 2017

Demolition market looking for some action ahead of 2018:

With the dry bulk market on recovery mode, ship recycling yards and cash buyers are scrambling to attract more deals. In its latest weekly report, shipbroker Clarkson Platou Hellas said that “there certainly appears to be some division between what some of the cash buyers are offering and the resale levels from the actual recyclers. The recent increase in rates has been maintained this week resulting in a very interesting sale. The VLCC “Plata Glory”, 38,361 ldt achieved a credible USD 438.00 per ldt basis delivery full range Indian sub. Continent, gasfree for hotworks. This is certainly a firm rate as this week, some industry players were talking the market down, and with the delivery scheduled in January, the sale could be an expensive risk if the current levels do not hold into the New Year. As aforementioned, some slight caution crept into the market this week, most likely on the back of the currency devaluation last week in Pakistan and confidence seemed to have been affected, however there remains a distinct lack of tonnage which should stabilise any possible negative corrections”, said the shipbroker.


In a separate note, Allied Shipbroking noted that “the ship recycling market continued to be in a relative slumber this past week with a limited number of deals being reported. Despite this, this limited volume was still a considerable improvement compared to what we were seeing the week prior, possibly indicating a slight increase in appetite that may well be merging amongst breakers. This increased appetite though may well be rather selective in nature from the buyer’s side, with a clear preference being shown both in terms of pricing and activity. From the main breaking nations, the Indian Sub-Continent continues to show a more bullish face compared to the rest of the regions, with Indian buyers seemingly ‘hungrier’ for the time being, gathering as many candidates as possible. Given that there seems to be an increased interest in high spec units and there seems to be a lack in speculative buying, there may well be an indication of some downward price correction in sight. On the whole, this slowdown in activity of late shouldn’t be considered too troubling, with the New Year holidays having surely played a role”, said Allied.


Meanwhile, GMS, the world’s leading cash buyer said this week that “this week, the general shortage of supply finally resulted in some of the previously exorbitant Cash Buyer purchases being onward committed to end Buyers, at levels comfortably in excess of breakeven, as a number of resales were reportedly confirmed at increasingly firmer prices. The primary focus of the industry has remained the soaring Indian market where even a number of decent LDT tankers have been diverted from a far-too hesitant Bangladesh. While a healthy majority of this week’s fixtures were reportedly concluded during the early part of the week, concerning news towards the end of the week saw declining local steel plate prices in India and the Pakistani Rupee depreciating even further, gradually approaching PKR 110 against the U.S. Dollar.


As such, an increasing number of Pakistani recyclers are now refraining from offering on market tonnage, nervous as to when the current situation will resolve itself. The prognosis is that the Pakistani government is set to inject cash into the market to improve liquidity in the coming weeks, in an attempt to alleviate (what is seen by many as) a temporary crisis. Notwithstanding, as Pakistani levels now dither, end Buyers are seeing this as the perfect opportunity to exploit the current situation and lowball on available tonnage, in the hopes of securing a cheap vessel (or two). This has subsequently seen some of the recent Capesize bulker supply from the Korean market stall a touch as Owners look towards competing bullish markets. To date, about 8 capes coming off Korean government charters have been sold over the last few months, which is surprising given that (dry) charter rates continue to push on at impressive numbers! As markets stand firmer by about 50% when compared to the corresponding period last year, it has been a stunning rally from the high USD USD 200s/LDT to well above USD 400/LDT this year, as the ship recycling industry finally starts to roar again”, GMS concluded.

Source: hellenic shipping news. 21 December 2017

GMS update on Shipbreaking in Bangladesh in Week 50 - FEEBLE & FRUSTRATED!

Bangladeshi recyclers were once again left witnessing Aframax tankers that were favorably positioned in the Far East being diverted towards India, as its competing neighbor continues to outbid them, in what has become an increasingly concerning trend over recent weeks.

What remains the only silver lining to the current situation has been the amount of tonnage that has been delivered to domestic yards over recent weeks, including a number of VLCCs - one of which was beached after several tides of delay, primarily due the lack of being appropriately cleaned to local “gas free for hot works” standards.

On the one hand, several Cash Buyers are holding back from committing their Bangladesh intended units to local Recyclers, as they attempt to inflate local demand and subsequently prices. On the other, local Recyclers are getting desperate to acquire units as they look to satisfy their banking limits before the year-end and are increasingly frustrated at losing a healthy majority of the recently concluded dry vessels to Pakistani Buyers and most tankers & even locally favored PCCs to Indian Recyclers.

While the current conditions seem to incubate the ideal scenario for a robust firming of prices from the Bangladeshi market, local steel plate prices have not enjoyed the upward trajectory witnessed from the Indian market over this past month that would embolden such a firming.

As such, there are limitations to which even tonnage-hungry Bangladeshi recyclers are able to effectively compete.

Source: steel guru. 20 December 2017

Continued support for safe and sustainable ship recycling in Bangladesh

The second phase of an IMO-implemented project to enhance safe and environmentally sound ship recycling in Bangladesh is set to begin in January, following a US$1.1 million funding agreement with Norway.

The two-year project will build on the first phase of the Safe and Environmentally Sound Ship Recycling in Bangladesh (SENSREC) project, which resulted in economic and environmental studies on ship recycling in Bangladesh, the development of training materials and capacity building plans and a preliminary design for infrastructure including facilities for treatment, storage and disposal of hazardous wastes generated from recycling operations.

Bangladesh is one the world’s top four ship recycling countries by capacity, alongside China, India and Pakistan, which together account for 94.9% of known ship recycling in the world . Ship recycling is key for the local economy and produces large quantities of steel and other materials which are recycled and sold on.

The second phase of the SENSREC project (SENSREC Phase II – capacity building) will continue to support Bangladesh to comply with international requirements and guide Bangladesh towards accession to the IMO ship recycling treaty, the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (known as the Hong Kong Convention). The Hong Kong Convention sets the international standards for ship recycling and, when in force, will ensure that ships do not pose any unnecessary risks to human health, safety or the environment when being recycled at the end of their operational lives.

The SENSREC Phase II – capacity building project will assist Bangladesh to build the capacity to develop and implement a legal, policy and institutional roadmap towards accession to the Hong Kong Convention. Also, under the project, a variety of stakeholders will be trained to lay the foundation for an effective and sustainable training programme within the ship recycling sector in Bangladesh.

“We are very pleased to be moving forwards with phase II of the SENSREC project.. The key focus of this phase will be on training and governance, to ensure safe and sustainable ship recycling,” said Dr. Stefan Micallef, Director of IMO’s Marine Environment Division, adding that the comprehensive training programme would be aimed at workers in ship recycling yards, supervisors and government officials.

Two core work packages form the basis of the project. The first work package focuses on building the national capacities to prepare for accession to the Hong Kong Convention by interconnecting three activities – to assessing the present situation, exploring current best practices in other ship recycling countries and identifying recommendations and a roadmap to guide the Government of Bangladesh towards accession to the Convention.

The second work package will deliver targeted pilot training activities for a variety of stakeholders, in line with the Hong Kong Convention requirements, establish a robust training management and governance system and deliver training activities developed for various stakeholders and workforces. In addition, two training workshops, supported by the Secretariat of Basel, Rotterdam and Stockholm Conventions (BRS), will address waste management issues. IMO will act as the implementing and executing agency for the project, working closely with the Ministry of Industries of the Government of the People’s Republic of Bangladesh, which will act as the national executing partner.

The project is funded by Norway’s Ministry of Foreign Affairs, channelling finance through the Embassy of Norway to Bangladesh. The budget is 9 Million Norwegian Krone (approximately US$1.1 million), for the 24-month project, commencing in January 2018. The agreement between IMO and Norway on funding support was signed on 24 November 2017.

Other international partners including the Secretariat of the BRS Conventions, the International Labour Organization (ILO) and the United Nations Industrial Development Organization (UNIDO) will also be involved.

Source: hellenic shipping news. 15 December 2017