01 April 2018

New study: Scrapping of old ships drives the marine deck machinery market in the coming years


Growth in the trading activities for perishable goods will benefit the Marine Deck Machinery Market in the future.

According to MarketIntelReports' “2018 Top 5 Marine Deck Machinery Players in North America, Europe, Asia-Pacific, South America, Middle East and Africa”:

Browse 124 Pages and an in-depth TOC on “Marine Deck Machinery Market 2018 ” here

www.marketintelreports.com/report/…e-east-and-africa

The marine deck machinery is present on the ship’s deck. It is required for the ship docking, loading and unloading of cargo, and for passengers to get on or off.

The anchor machine ensures that the ship navigates normally. The Marine Deck Machinery Market will have a steady growth during the forecast period.

Older ships are being scrapped and this factor contributes to the demand for the market. The coastal marine equipment is also boosted by the growth of the ship building industry.

The end to end integrated services is the latest trend happening in the market. Growing demand for new vessels benefits the industry.

Scope & Regional Forecast of the Marine Deck Machinery Market

Growth in trading activities and refrigerated seaways transportation boost the Marine Deck Machinery Market. Asia Pacific holds a major share in the deck equipment.

China is the main region for commercial ship building It is expected that the shipbuilding industry in the country will be reformed. This has a positive outlook for the market in the future.

In South Korea, Hyundai Heavy Industries is the largest producer of the marine deck winches. Mitsubishi Heavy Industries also arrives as a competition to South Korea and China.

High value ships and vessels with a small environmental impact will benefit the market in the coming years.

For complete details: Request a sample download @ www.marketintelreports.com/pdfdownload.php?id=lpir0006

The commercial ship segment had a huge share of the marine crane design in 2016. This domination will continue in the forecast period.

Growth in new vessels and offshore ships also propel the demand for deck anchors.

Segmentations & Key Players Involved in the Marine Deck Machinery Market

The Marine Deck Machinery Market can be broken down into various segments as follows:

  • Product Type- Winch, Windlass, Capstan, and Others.
  • Application- Commercial Ship and Leisure Ship.
  • Region- North America (United States, Canada and Mexico), Asia-Pacific (China, Japan, Southeast Asia, India and Korea), Europe (Germany, UK, France, Italy and Russia., South America (Brazil, Chile, Peru and Argentina), Middle East and Africa (Egypt, South Africa, Saudi Arabia).


Some of the key players involved in the Marine Deck Machinery Market are as follows:

  • Mitsubishi Heavy Industries
  • Rolls-Royce
  • Wartsila
  • Kawasaki Heavy Industries
  • Coastal Marine Equipment




Source: Wha Tech. 24 February 2018

NGOs respond to legal threats by shipbreaking industry and withdraw from industry conference


Hamburg, 7 March 2018 - On Monday, the NGO Shipbreaking Platform, an international coalition of labour, human rights and environmental organisations, withdrew their participation from the TradeWinds Ship Recycling Forum that starts today in Hamburg. This is in response to a letter from cash buyer GMS threatening to sue unless the Platform removes all mention of GMS from their website. The Platform has frequently exposed the cash buyer for enabling the dirtiest and most underhanded practices in the shipbreaking industry [1]. Tradewinds refused to replace GMS company staff as chair in the sessions in which the Platform was to participate as experts, despite being noted that it is a conflict of interest and inappropriate to allow discussions to be moderated by a person representing a company that is threatening to legally attack a session invitee.

“No company would accept to participate in a debate moderated by someone threatening to sue them”, says Ingvild Jenssen, Founder and Director of the NGO Shipbreaking Platform. “We regret not being able to present our views at TradeWinds where we would have especially provided our support to the many financers, investors and authorities that are now engaging to set a standard for the industry and who are demanding to move the industry off the beach”, she adds.

In reaction to the attempt by GMS to silence critical civil society voices that reveal the company’s unethical, dangerous and environmentally disastrous business practices, the Platform’s legal counsel in Belgium and in the US has further responded in a letter that neither an apology nor retractions will be forthcoming.

“We have no intention to remove truthful information from our website and will not apologise for reporting on the business of trafficking ships for dirty and dangerous breaking. It is our organisation's mission to provide authorities, journalists, and industry stakeholders with information on the deplorable realities of current shipbreaking practices which encourage the circumvention of existing labour and environmental protection laws", says Ingvild Jenssen.

The harassment by GMS comes in addition to the earlier threat to sue the Platform made by PHP, a Bangladeshi shipbreaking yard and a supporting sponsor of this year’s TradeWinds Ship Recycling Forum.   


NOTES
[1] Dubai-based GMS has been involved in several cases of illegal hazardous waste exports that are being/have been investigated by authorities and the police in several countries.
For instance:
- GMS was revealed to be the cash-buyer for the illegal export of the North Sea Producer from the UK to Bangladesh: https://old.danwatch.dk/en/undersogelse/maersk-og-det-farlige-affald-i-bangladesh
- Three drill rigs cold-stacked in Scotland were stopped from leaving after their destination was suspected to be to a beaching yard in South Asia. GMS has been confirmed as the buyer of the rigs: https://www.energyvoice.com/opinion/162853/opinion-scrap-shady-underbelly-offshore-industry/?utm_source=twitter
- Last year, a worker in Bangladesh claimed compensation for injuries incurred while breaking a ship owned by Zodiac Maritime. GMS was revealed to be the cash buyer behind the sale to the shipbreaking yard: https://www.theguardian.com/global-development/2017/dec/02/chittagong-shipbreaking-yards-legal-fight
- In 2009 the company was fined $518,500 dollars by the US EPA for illegally exporting a PCB laden passenger liner to South Asia: http://www.marinelog.com/DOCS/NEWSMMIX/2009jan00311.html    


CONTACT
Ingvild JENSSEN
Executive Director and Founder
Tel.: +32 (0)2 6094 419

Source: NGO shipbreaking platform

3.5m DWT Tankers Scrapped in 2018 so far


Tanker scrapping slowed in 2015 due to three key factors: Stronger spot market returns, low price being offered by buyers at the recycling yards, and the demand to store oil following the price collapse in late 2014. Each played a part as the decision to remove a ship from service varies depending on the financial situation of the owner. Some may be motivated as the $/t offered price offsets enough of their remaining mortgage on a ship to allow them to move out of a low cashflow market, while others may remove a ship after it completes a long-term storage contract.


Higher spot market returns were due to higher levels of removals over the past several years combined with a low level of orders. This led to a contraction in fleet sizes in many segments.

Restrictions on emissions in China as the country grapples with air pollution issues has led to a rise in steel prices. The impact of this is seen in the global steel markets, which influences the value recyclers are willing to pay per lightweight ton. The price being offered in India for tankers and bulkers has been trending upwards since mid-2016.


The sudden drop in oil prices led to a demand for floating storage as shoreside tanks filled due to contango in the oil markets. Older ships were taken on three to 12-month charters to store oil as they were able to offer lower $/day numbers than prime (less than 10 years) aged ships. The employment of these ships removed them as scrap candidates and kept them on the water.

High scrapping and market consolidation will contribute to better returns for owners over the next several years. For the harmony of the global shipping markets continues, older units are removed in a weak market and replaced with new vessels as rates recover.

Source: hellenic shipping news. 01 March 2018

Infographic: Shipbreaking Villains and Victims in 2017


Credit: NGO Shipbreaking Platform

New figures show that India received the most vessels at its shipbreaking yards in 2017, with Greece the biggest culprit of unethical dumping, according to the NGO Shipbreaking Platform.

According to new data from the platform, which works to raise awareness and prevent the human rights abuses in the market, 835 large ocean-going commercial vessels were sold to the scrap yards in 2017.

It found that 543 were broken down – by hand – on the tidal beaches of Bangladesh, India and Pakistan.

This figure amounts to 80.3% of all tonnage dismantled globally.

Ingvild Jenssen, Founder and Director of the NGO Shipbreaking Platform, said: “The figures of 2017 are a sad testimony of the shipping industry’s unwillingness to act responsibly.

“The reality is that yards with infrastructure fit for the heavy and hazardous industry that ship recycling is, and that can ensure safe working conditions and containment of pollutants, are not being used by ship owners.

“It is particularly shameful that so many European shipping companies scrap their vessels on beaches.

“Their obvious lack of interest to ensure that shipbreaking workers around the world enjoy best available technologies, and that the environment is equally protected everywhere, clearly calls for additional pressure from authorities, shipping clients and financers.”

Shipbreaking leads to workers – often migrants and some of them children – losing their life or suffering from injuries caused by fires, falling steel plates and the general unsafe working conditions.

There are also occupational diseases due to exposure to toxic fumes and materials.

The industry also has environmental impacts on coastal ecosystems, and the local communities depending on them, which face exposure to toxic spills and various pollutants leaking into the environment due to the dismantling of vessels on beaches.

In its announcement, NGO Shipbreaking Platform stated: “Despite the terrible accident that shook the international shipbreaking community in 2016, no lesson has been learned in Pakistan.

“In 2017, at least 10 workers lost their lives at the shipbreaking yards on the beach of Gadani.


“The Platform documented 15 deaths in the Bangladeshi yards last year, where also at least another 22 workers were seriously injured.

“Whilst international and local NGOs were repeatedly denied access to the Indian shipbreaking yards, the Platform was informed of at least eight fatal accidents in Alang in 2017.”

All vessels sold to the beaching yards pass through the hands of scrap dealers known as cash buyers.

By doing this, ship owners attempt to shield themselves from responsibility, and are paid upfront the highest market price in cash for their end-of-life vessels by the dealers.

To reduce costs and to exploit the loopholes in international legislation, cash buyers will change a vessel’s flag to one of the typical last-voyage flags of convenience, such as Comoros, Palau and St Kitts and Nevis.

Cash buyers will also register the vessel under a new name and a new post box company, rendering it very difficult for authorities to trace and hold cash buyers and ship owners accountable for illicit business practices.

Carlsson added: “Ship-owning companies that stand by their corporate social responsibility directly sign contracts with ship recycling facilities they have inspected and found adequate.

“Choosing to sell a ship to a facility which is on the EU list of approved yards is the easiest way for a ship owner to be assured that there has been a quality check.

“Fortunately, it is becoming increasingly difficult for ship owners to simply blame the cash buyer: investors and authorities are expecting ship owners to control the choice of the recycling yard, and expect that choice to be a yard that does not endanger workers and the environment.”

Source: port technology. 21 February 2018

The Shame Game - Michael Grey of Lloyd’s List


THERE is a new and nasty disease around this winter. Not the various strains of influenza, but more of a social phenomenon, that is both unpleasant and reprehensible. It is facilitated by social media, the technology that enables a small number of driven people to cause a great deal of noise and commotion when they perceive something with which they disagree. To your average nose ringed activists, it is as if all their birthdays have come at once, as they swarm around their prey.

It also spills into bullying and what is euphemistically called “direct action” which is not far short of violence, a modern derivation of the strategies employed in the 1930s, in certain parts of Europe. And sadly, it seems to be working, with even big corporations, quasi-governmental organisations and people you might think would have a stiffer backbone, cowed into submission by the noisy and persistent minority.

When the cause of the activists seems to be derailed by science, evidence or reason, that won’t stop them as they will just shriek the louder, take to the streets and the various media platforms, to silence those who might disagree with them. Whether it is militant vegans persecuting pig farmers, the hunt saboteurs, organised anarchists terrifying small retailers, right through to the climatologists against oil, who seemed to have frightened the World Bank, it is collectively a testament to the powers of unreason and rage.

You might dispute the process, but I thought that the recent announcement by the Norges Bank and the Council of Ethics of the Norwegian Government Pension Fund Global to the effect that they would discriminate against shipping companies that had chosen to scrap ships in places they disapproved of, was a classic example of this nasty disease showing itself in northern climes. Norwegians like to regard themselves as terribly proper, happy to emphasise their environmental credibility (much of which is facilitated by their oil and gas riches) and offering an example to us all.

But in this case, it would seem that the proprietors of all this money have allowed themselves to be unduly influenced by activists who will stop at nothing to prevent ships being recycled on the beaches of Asia, who care nothing about the livelihoods of those that work in this industry and who refuse to accept the improving situation in many of these yards. In short, the fund managers have been bullied, persuaded by what has become known as “fake news”, repeated ad infinitum by the activists of the NGO Shipbreaking Platform, which is doing its damnedest to discredit the Hong Kong Convention.

You might suggest that the fund is free to do with its money as it wishes, but it is clearly acting out of ignorance in respect to the status of the Hong Kong Convention, which effectively deals with the ships, their materiel and the subsequent treatment of the land-based waste generated from this product. It deals with the environment and the working conditions of those in the recycling yards.

There is also no shortage of objective evidence of the incremental improvements that have been taking place in the three recycling nations of Asia. If they are trying so hard, is the discrimination of this fund against potential users of these yards either fair or just? Is it based on any real evidence, or merely the prejudiced views of an activist organisation, whose sole purpose is to prevent ships being recycled in places of which they disapprove?

I merely ask the question of this fund chairman, who seems to have been influenced without properly considering the situation on the ground. Is this action helping, or discouraging those yards which are working hard and spending a lot of money, to bring their facilities into a state of compliance? Or is this just “virtue signalling”, which is another modern phenomenon that is related to the above.

Of course, matters would surely be helped by a little more encouragement by flag states to bring the Hong Kong Convention into effect. Governments have all sorts of priorities, but if they have any sort of shipping industry, they have a vested interest in this convention and it surely would not be too much trouble. There may well be improvements that could be made, once the convention is up and running, but for goodness’ sake give it a fair trial.

We need to show the world’s biggest recyclers that we care and will encourage their improvements, not constantly bleat about their residual deficiencies. It is also time we started to see the loud noises made by the one-dimensioned as what they are, and weigh the evidence in a more mature fashion. Which is quite obviously what the Norwegian chairman failed to do, before issuing this ill-found edict. But the Fund is by no means the first to be influenced by the mob, in an era of shame.

Source: steel guru. 14 February 2018

Platform publishes list of ships dismantled worldwide in 2017


According to new data released today by the NGO Shipbreaking Platform, 835 large ocean-going commercial vessels were sold to the scrap yards in 2017. 543 were broken down – by hand – on the tidal beaches of Bangladesh, India and Pakistan: amounting to 80,3% of all tonnage dismantled globally.

“The figures of 2017 are a sad testimony of the shipping industry’s unwillingness to act responsibly. The reality is that yards with infrastructure fit for the heavy and hazardous industry that ship recycling is, and that can ensure safe working conditions and containment of pollutants, are not being used by ship owners”, says Ingvild Jenssen, Founder and Director of the NGO Shipbreaking Platform. “It is particularly shameful that so many European shipping companies scrap their vessels on beaches. Their obvious lack of interest to ensure that shipbreaking workers around the world enjoy best available technologies, and that the environment is equally protected everywhere, clearly calls for additional pressure from authorities, shipping clients and financers”, she adds.

The negative consequences of shipbreaking are real and felt by many. On the one hand, workers – often exploited migrants and some of them children – lose their life, suffer from injuries caused by fires, falling steel plates and the general unsafe working conditions, as well as from occupational diseases due to exposure to toxic fumes and materials. On the other hand, coastal ecosystems, and the local communities depending on them, are devastated by toxic spills and various pollutants leaking into the environment as a result of breaking vessels on beaches.

Despite the terrible accident that shook the international shipbreaking community in 2016, no lesson has been learned in Pakistan. In 2017, at least 10 workers lost their lives at the shipbreaking yards on the beach of Gadani. The Platform documented 15 deaths in the Bangladeshi yards last year, where also at least another 22 workers were seriously injured. Whilst international and local NGOs were repeatedly denied access to the Indian shipbreaking yards, the Platform was informed of at least eight fatal accidents in Alang in 2017.


DUMPERS 2017 – Worst practices

As in 2016, GERMANY and GREECE top the list of country dumpers in 2017. German owners, including banks and ship funds, beached 50 vessels out of a total of 53 sold for demolition. Greek owners were responsible for the highest absolute number of ships sold to South Asian shipbreaking yards in 2017: 51 ships in total. Since the Platform’s first compilation of data in 2009, Greek shipping companies have unceasingly topped the list of owners that opt for dirty and dangerous shipbreaking.

Despite increased pressure for safe and clean ship recycling from Norwegian investors and authorities, in 2017, the number of Norwegian-owned ships scrapped on the beach was on the rise: 18 ended up in Alang, Gadani and Chittagong. The attempted illegal export of the TIDE CARRIER to Pakistan was stopped by Norwegian authorities following an alert by the Platform.

“In light of increased pressure from Scandinavian banks and investors, including Norwegian pension funds KLP and NBIM, and ongoing criminal investigations against the owners of TIDE CARRIER, Norwegian ship owners will have to ask themselves whether dirty profits are worth the reputational and financial risk that using beaching facilities now entails. Also, Danish container-giant Maersk will have an increasingly hard time justifying its U-turn back to the beach in Alang, as the yards there will not make it on the EU list of approved ship recycling facilities [1]”, comments Ingvild Jenssen.

The worst corporate dumper prize goes to Continental Investment Holdings (CIH), the Singapore-headquartered shipowning arm of Myanmar shipowner Captain U Ko Ko Htoo and parent company of Continental Shipping Line. The company, which is currently changing the composition of its fleet, sold 9 ships for breaking on the beaches in 2017. Four vessels ended up in Bangladesh, where in late December, during the demolition of CIH’s TAUNG GYI STAR, a worker died hit by a falling iron plate.

Ranked at second place, the container shipping giant Mediterranean Shipping Company (MSC) sold 7 vessels to Indian breakers. In the last nine years, MSC has profited from the sale of more than seventy ships for dirty and dangerous scrapping in Alang.

The Japanese owner Mitsui OSK Lines and the UK-based Zodiac Group follow closely with respectively 6 and 5 ships sold to South Asian yards. Zodiac received the worst dumper award in 2016 and sold 4 vessels to the yards in Chittagong despite being under scrutiny after a Bangladeshi worker sought compensation from the company for injuries incurred when breaking the EURUS LONDON.

Other known companies that in 2017 opted for substandard yards, rather than recycling their ships in a safe and clean manner, include: Hanjin Shipping, Hansa Mare Reederei, Peter Dohle Schiffahrts, Rickmers Reederei, Hansa Treuhand, Berge Bulk, Costamare, Quantum Pacific Group and Teekay. Teekay had promised to never sell to beaching yards again after a worker died breaking the ASPIRE in 2014 in Chittagong. That Berge Bulk was under the spotlight in December 2016, when it was feared that the Berge Stahl would end up on a beach, did not prevent the company from selling another 5 ships for dirty and dangerous breaking in 2017.

With the oil and gas sector seeing a downturn in the last couple of years, the Platform has documented an increase in offshore units that have gone for scrap. Out of the 91 units which have been identified as demolished in the last three years combined, 41 of them ended up on the beaches of South Asia after being towed for thousands of kilometers across the globe. Three floating platforms cold-stacked in Scotland that were sold by Diamond Offshore for scrap in 2017, allegedly to cash buyer GMS, were stopped from leaving following an alert by the Platform on their highly likely illegal export. “Fixed platforms cannot easily escape decommissioning rules, whereas we have seen that nearly half of all floating units slip under the radar and end up on beaches – this double standard has to stop”, states Francesca Carlsson, Corporate Liaison and Policy Officer of the NGO Shipbreaking Platform.

All vessels sold to the beaching yards pass through the hands of scrap dealers known as cash buyers. In this way, ship owners attempt to shield themselves from responsibility, and are paid upfront the highest market price in cash for their end-of-life vessels by the dealers. To reduce costs and to exploit the loopholes in international legislation, cash buyers will change a vessel’s flag to one of the typical last-voyage flags of convenience, such as Comoros, Palau and St Kitts and Nevis. Cash buyers will also register the vessel under a new name and a new post box company, rendering it very difficult for authorities to trace and hold cash buyers and ship owners accountable for illicit business practices.

“Ship-owning companies that stand by their corporate social responsibility directly sign contracts with ship recycling facilities they have inspected and found adequate. Choosing to sell a ship to a facility which is on the EU list of approved yards is the easiest way for a ship owner to be assured that there has been a quality check. Fortunately, it is becoming increasingly difficult for ship owners to simply blame the cash buyer: investors and authorities are expecting ship owners to control the choice of the recycling yard, and expect that choice to be a yard that does not endanger workers and the environment [2]”, says Carlsson.

* The data gathered by the NGO Shipbreaking Platform is sourced from different outlets and stakeholders, and is cross-checked whenever possible. The data upon which this information is based is correct to the best of the Platform’s knowledge, and the Platform takes no responsibility for the accuracy of the information provided. The Platform will correct or complete data if any inaccuracy is signaled. All data which has been provided is publicly available and does not reveal any confidential business information.

Source: hellenic shipping news. 21 February 2018

GMS update on Shipbreaking in China in Week 12 - TRADE WAR LOOMS?!


Post Chinese holidays has seen little change to the status quo, with levels still stranded in the low USD 200s/LDT and occasionally even dipping below USD 200/LDT for some smaller LDT tonnage. As such, most players in the industry have been focusing on the subcontinent markets that are presently paying well over double of what Chinese recyclers are currently offering.

As previously reported, President Xi has been voted in to the Premiership for life and it remains to be seen just how China will respond to President Trump’s aggressive 20% tariffs on steel and aluminum imports into the United States, in addition to the reported USD 60 billion in tariffs on China specific imports.

Whether this will eventually end up in a trade war remains to be seen, but if so, will certainly have catastrophic consequences for this and many other industries alike. For now, China has responded sternly to the news stating that the Chinese government will take necessary precautions in order to protect their trade interests.

The state scrap / newbuilding subsidies have also to be renewed this year failing which, could result in a steady stream of government controlled Chinese flagged tonnage eventually heading towards the subcontinent for recycling.

Source: steel guru. 28 March 2018

GMS update on Shipbreaking in Turkey in Week 12 - HEAD SCRATCHER!


The Turkish market proved to be a real head-scratcher this week. At the onset, the Turkish Lira declined to its lowest level ever - briefly trudging past the TRY 4.0 mark against the US Dollar but firmed marginally before the end of the week, sitting at TRY 3.98 (at the time of writing). On the flip side, local steel plate prices started to inexplicably rise and have done so over the last couple of weeks.

Why this has given Aliaga Recyclers the impetus to firm up their numbers for ships remains a puzzling phenomena as local offerings have reportedly jumped this week, crossing $300/MT (for tankers).

Is it the potential of a brewing global trade war due to President Trump’s impending tariffs or the feared subsequent collapse of local steel plate prices or the prevailing concerns of far stronger offerings from the sub-continent markets that are compelling Aliaga Recyclers to remain increasingly competitive, are certinaly questions on everyone’s minds.

For now, Ship Owners may revel on the firmer levels, which we suspect won’t be for much longer, especially if the Lira continues to decline.

Source: steel guru. 28 March 2018

GMS update on Shipbreaking in India in Week 12 - OFF THE PACE!


Apart from the odd HK SoC green recycling sale and fixtures of specialist units (such as reefers, RoRos and passenger vessels), Alang buyers have once again been starved of market tonnage as Bangladesh pushes on acquiring wet units and many Cash Buyers continue purchasing and holding tankers in the hopes of a Pakistani reopening.

As such, only one sale registered this week with a likely India re-delivery as the RoRo PRAYASTI (10,829 LDT) was sold on an “as is” Singapore basis at a decent USD 410/LT LDT.

Meanwhile, Indian local steel prices have endured another frustrating week and this has led to an increased reticence from Alang Buyers willing to commit units at even locally workable numbers as they remain fearful of the possibility of further market declines ahead.

The Indian Rupee is also trading above the Rs. 65 mark against the U.S. Dollar once again and it remains to be seen just how the latest tariffs imposed on Chinese steel will affect the rest of the industry (including India) and whether this excess supply of steel from China will once again be unceremoniously dumped into sub-continent markets, causing steel prices to collapse (akin to the 2014 – 2015 collapse).


Source: steel guru. 28 March 2018

Ship Breaking Yards: Six killed in 3 months


Experts blame lack of safety measures for accidents

Experts have blamed the lack of safety measures for the frequent casualties at the ship breaking yards in Chittagong's Sitakunda.

At least six workers were killed in the first three months of this year. Last year, the number was 16.

In the latest incident, Afil Rema, a 25-year-old man from Netrakona, was killed at Khaza Ship Breaking Yard yesterday morning, said Inspector Palash Kumar Das of the Department of Inspection for Factories and Establishments, Chittagong.

Afil was cutting a ballast tank with a blow torch when suddenly there was an explosion, leaving him critically injured, said Palash, adding that the worker was rushed to Chittagong Medical College Hospital where doctors declared him dead around 10:30am.

On February 22, another worker, Harun-ur-Rashid, a 45-year-old man from Naogaon, died of his injuries at Dhaka Medical College Hospital.

He had sustained serious wounds in a similar incident at Jamuna Ship Breaking Yard on February 18. Harun too was cutting a tank with a blow torch. Two other workers were also injured.


Talking to The Daily Star, Palash said the accidents happened due to a lack of precautionary safety measures at the ship breaking yards.

“According to the rules concerned, these types of tanks or pipes should be cut with hacksaws, not with blow torch,” he said.

Asked, he said the authorities of many ship breaking yards discourage workers from using hacksaw as cutting metals with that consumes time, putting lives at risk.

Contacted, Mejbah Uddin, manager of Jamuna Ship Breaking Yard, claimed that the three workers injured on February 18 were not cutting any tank.

“Actually they were standing on a tank and cutting a pipe.  There was an explosion probably because flames came in contact with fire,” he said.

Asked about the use of blow torch instead of hacksaws, he said, “It's unfortunate that the accident happened. There was no oil inside the pipe. We had washed it with water.”

The Daily Star could not contact anyone from the authorities of Khaza Ship Breaking Yard.

According to NGO Shipbreaking Platform, a Brussels-based international organisation working for ensuring safety in the sector, said at least 181 workers were killed in accidents in different ship breaking yards in Sitakunda between 2005 and 2017.

There are around 100 such yards in the upazila.

Mohammad Ali Shahin, Bangladesh coordinator of the platform, held the lack of safety measures responsible for the frequent accidents.

 Also, there is no effective monitoring from the government side on the issue, he said, adding, “The government officials concerned visit the yards only when there is an accident and skip their responsibilities by filing cases with labour courts or issuing show cause notices to the [yard] owners.”

Syeda Rizwana Hasan, chief executive of Bangladesh Environment Lawyers' Association (Bela), said ship breaking activities should be done in dry docks to avoid such accidents.

“Lack of safety measures is responsible for the accidents and all the government offices responsible for the monitoring maintain a liaison with the yard owners. They do not do their job properly,” she said, adding that the number of accidents would come down significantly if the matter was monitored properly.

Abdul Hai Khan, deputy inspector general of the Department of Inspection for Factories and Establishments, refuted the allegations.

“We have a manpower crisis. It is not possible for only two inspectors appointed for the zone to visit around 100 yards every day,” he said.

“Despite limitations, we are trying our best to deliver the best,” he added.

Source: the daily star. 29 March 2018

GMS update on Shipbreaking in Pakistan in Week 12 - CURRENCY CONCERNS!


This week, the main concern in the Pakistani market centered around an unexpected and alarming currency depreciation to the tune of about 5% (approximately PKR 5), something that has left end buyers understandably shaken and reluctant to offer anywhere near previous levels on unsold tonnage currently on offer.

Coupled with their ongoing (frustrated) attempts in trying to get the local market reopened for tankers, it has been a less than stellar week for the Pakistani market.

Surprisingly however, end Buyers continue to offer on and even conclude tankers albeit on a “conditional” basis, so confident have they been of tankers getting the green light soon. Moreover, certain speculative Cash Buyers are seemingly willing to take on such a risk and are reselling their tankers despite the uncertainty, possibly to minimize potential losses, now that numbers are starting to cool off.

Time will tell if such a strategy will in fact be an effective one. For now however, given that a timely market reopening is up in the air, just how tanker conclusions going forward will play out remains to be seen.

Source: steel guru. 28 March 2018

GMS update on Shipbreaking in Bangladesh in Week 12 - DEMAND SUBSIDES!


The three VLCC sales from last week, which included Dr. Peters VLCC the DS VADA (42,972 LDT), Eastern Pacific’s MARITIME JEWEL (41,732 LDT) and the Tsakos controlled MILLENNIUM (41,827 LDT), all of which were the last of the leviathans that managed to capture peak market levels of 2018 thus far. This week however, working (wet) units have all seen offerings anywhere between USD 10 – USD 15/LDT lower.

As a result, most Owners have been reluctant to negotiate / conclude their vessels at these sudden and unexpectedly lower levels, such has been the ferocity and extent of the (speculative) market improvements / offerings over this past month or so, where a number of VLCC Owners have seen recycling prices border on further trading levels as most Cash Buyers speculatively negotiated units with the anticipation of a Pakistani reopening.

Notwithstanding, even if prices were to settle USD 15 – USD 20/LDT (if this is where prices eventually settle) below recent peaks, it certainly cannot be construed as much of a decline as levels are still some at of the highest we have seen over the last few years.

Overall, demand has (expectedly) started to dampen given that all of those units concluded basis a Pakistan reopening, gradually are and expected to end up in Bangladeshi hands as Indian recyclers remain reluctant to match Bangladeshi levels for large LDT tankers.

Accordingly, on the back of a plethora of recent (market and private) resales into Bangladesh and Chittagong Recyclers becoming acutely aware of further units coming their way, we anticipate this is expected to play into their hands in the weeks ahead and help them grab a comparatively cheap deal (or two).

Source: steel guru. 28 March 2018

An unjustifiable human cost


Make shipbreaking safer for workers

We are shocked by the news that at least six workers involved in shipbreaking and recycling were killed in the first three months of 2018, the latest as recently as Wednesday morning. It's also pathetic that shipbreaking is turning from being one of the “greenest” industries (because of recycling) into one of the deadliest, with the number of deaths and injuries to workers rising steadily. The Daily Star report on the deaths quoted a Brussels-based NGO that said that between 2005 and 2017, at least 181 workers were killed in accidents in different breaking yards in Sitakunda, Chittagong, which houses the world's largest shipbreaking industry.

We have frequently highlighted the poor safety conditions in these yards and also stressed the need for improving safety as well as the overall living and working conditions of the workers. Although industries that involve physical labour generally lack safe working condition in Bangladesh, the human cost of this fast-growing industry is too great to be ignored anymore. Dismantling a ship is itself a daunting task because of the risks associated with it. And doing it without proper safety gear and necessary pre-demolition caution is like inviting disaster. Regular monitoring to check safety standards is thus an important part of how a shipbreaking industry functions—something that has been regrettably missing in Bangladesh's case.

Shipbreaking is proving to be profitable for Bangladesh, but the authorities—those in the industry as well as the government—must understand that workers' safety comes first and it's not in contradiction to the principles of profits. Making the shipowners respect and obey the safety rules is the responsibility of the government.

Source: the daily star. 30 March 2018