Shipowners' role in recycling under spotlight:

As the global ship recycling industry prepares to gather in Singapore, a fresh push is expected for European shipowners to recycle their old ships according to the standards of the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC). 

Addressing delegates at next week’s TradeWinds Ship Recycling Forum, Soledad Blanco, Director for Sustainable Resources, Management, Industry and Air, DG Environment European Commission will outline the shape of a new EU regulation replacing the EU’s Waste Shipment Regulation.

She is expected to tell delegates “Once this regulation is in force in 2013 or 2014, European shipowners will have to establish a mandatory inventory of hazardous materials and to send their ships only to safe and sound recycling facilities worldwide.”

Blanco believes the new EU regulation covering EU-flag vessels “will shift a significant part of business to sustainable facilities. These upgraded facilities will be able to pass over the cost of their investments to shipowners in accordance to the polluter pays principal.”

The shipowner’s role in recycling will be further examined at the Forum by Yuichi Sonoda, Secretary General of the Asian Shipowners’ Forum (ASF) during the keynote presentation.

Sonoda's message to the industry will be followed by Dr Nikos Mikelis, Head, Marine Pollution Prevention, Ship Recycling Section of the IMO, who, speaking in a personal capacity, will tell delegates that although there are quite a few shipowners’ who will recycle ships according to the highest practical standards, “like milk is not cream, these companies are not normal in the statistical sense of the word.”

Central to the Forum theme of 'Who's Paying?' Dr Mikelis is expected to tackle some of the issues that have surrounded the HKC from day one, not least whether the financial burden is being divided equally between stakeholders, including shipowners and recyclers.

On the heels of the shipping industry, a new campaign from environmental pressure group NGO Platform on Shipbreaking, targeting ship owners and charterers, will be presented by Merijn Hougee.

The TradeWinds Ship Recycling Forum is taking place as appalling freight markets have pushed shipowners into dispatching a massive volume of tonnage for demolition during the first two months of 2012.  Perhaps reflecting the record levels of ships currently being scrapped, the Forum has attracted a record attendance, with delegates drawn together from the normally disparate worlds of regulation and commerce. Delegates from more than 20 nations will descend on Singapore's Four Seasons Hotel on Monday for the discussions.

Source: NHST Events. 9 March 2012

http://www.mynewsdesk.com/uk/pressroom/nhst-events/pressrelease/view/shipowner-s-role-in-recycling-under-spotlight-740138

Chinese yard picks up Hoegh car carrier for green recycling:

Chinese ship recyclers hope the sale of Norwegian owner Hoegh Autoliners’ 3,700-car-equivalent-unit (ceu) Hoegh Trotter (1983) to Jiangmen Zhongxin Ship Recycling Yard in South China on Monday marks the growing importance of green recycling facilities on the mainland, particularly to European owners for whom being environmentally responsible is not an option but a necessity.

Mr. Liang, majority owner and General Manager of Jiangmen Zhongxin Shipyard reflects on the sale as an addition to their ongoing commitment to green recycling.

"Having an important Norwegian owner like Hoegh place their trust in us is a big achievement and we will continue to carry out responsible, safe and environmentally conscious ship recycling here at our yard. We are also happy to be working closely with the cash buyer, Grieg Green, for the successful closing of this deal", he said.

NHST Events, organiser of the annual Ship Recycling Forum, was on-site to witness the handover of the vessel as well as inspect the yard and its facilities as part of its on-going commitment to covering the ship recycling market. The 2012 edition of the event takes place in Singapore from 12 - 13 March and has attracted a record level of support. The visit  to South China’s Guangdong province follows on from NHST Events' trip to Chittagong last month alongside a delegation from IMO and the Norwegian Agency for Development Cooperation (NORAD) during which a new project providing financial support to Bangladesh’s ship breakers was agreed.  With the ship import ban in Bangladesh set to extend into the New Year, Chinese yards like Zhongxin are keen to handle any surplus demand.

During the yard visit, NHST Events also spotted the 16,270 DWT Xiang Jiang, reported by demo broker EBM as being sold this week for USD 495 per ldt.

When asked about current demand and plans for expansion at the yard, Mr. Liang alluded to a possible takeover of the neighbouring plot of land but that the capacity at the yard would not increase because "it has always been our wish to provide quality rather than quantity", he said.

Grieg Green, the cash buyer and recycling consultant in the Hoegh deal is relatively new to the scene and Hoegh Trotter represents an important milestone. The Norwegian family-owned company, which sources say paid just over USD 450 per ldt for the vessel, entered the recycling market 12 months ago. A spokesperson said "We are very pleased to be working with Zhongxin and are confident our superintendent who will be on-site for the duration of the project will have positive reports".

Senior representatives from Zhongxin Ship Recycling Yard and Grieg Green are set to attend TradeWinds Ship Recycling Forum in Singapore, which encompasses the International Ship Recycling Association (ISRA) AGM at which Mr. Liang will be a participant.

The 4th TradeWinds Ship Recycling Forum is sponsored by WIRANA, ClassNK, Lloyd's Register, Sea2cradle, Germanischer Lloyd, Dalian Shipbuilding Industry Ship Recycling Co, ISRA, Al Salam Insurance Services, Rotar, Wilhelmsen Ship Management and St Kitts & Nevis. The event is supported by the Maritime and Port Authority of Singapore (MPA).

NHST Events AS is part of the Norwegian news organisation NHST Media Group with operational headquarters in London.

NHST Events global reach extends to the most traditional and the most dynamic shipping centres of the world, with events running in Singapore, Athens, Oslo, London, Istanbul and Shanghai.

Source: NHST Press Release. 6 December 2011

http://www.mynewsdesk.com/uk/pressroom/nhst-events/pressrelease/view/chinese-yard-picks-up-hoegh-car-carrier-for-green-recycling-712293

Scrap to improve profits in OSV sector:

Calls for more scrapping of older offshore support vessels (OSVs) were welcomed from operators and builders alike during the opening session of TradeWinds Offshore Marine conference in Singapore on Thursday.

Speaking to more than 140 delegates, Hallin Marine’s business development director John Payne suggested that supply would continue to outstrip demand as long as a market remained for older tonnage. Payne welcomed the development of new designs from fellow panelist Torgeir Haugan of STX OSV but questioned whether the market ‘could afford’ the new designs in a market where ‘price comes first, technology second’.

Highlighting a long-term shift from AHTS to PSVs in Asia, Fearnley’s broker Harald Paulsen Lovik told delegates during the Q&A session that European vessel designs incorporating greater fuel efficiencies, carrying capacities and lower emissions were gaining ground in Asian markets.

But despite predictions of growing demand for OSVs to service deepwater E&P activity in China, Malaysia and Indonesia, Lovik predicted that day rates would remain flat for the next 9-12 months, giving rise to questions of whether charterers would be prepared to pay for more expensive and technically advanced boats.

Wärtsilä VP, Riku-Pekka Hägg noted that while there was interest in high tech vessels in Asia, the enthusiasm was not reflected in the charter rates. He added that ‘modest steps’ towards high end vessels were being driven by legislation in market characterized by an ‘extreme focus on cost.’

NHST Events global reach extends to the most traditional and the most dynamic shipping centres of the world, with events now running in Shanghai, Singapore, Copenhagen, Athens,Oslo, Istanbul and Bermuda.

Our mission is simply to deliver exceptional value for time for our speakers, delegates and sponsors through a combination of informative presentations and lively social functions.

NHST Events AS is part of the Norwegian news organisation NHST Media Group with operational headquarters in London.

Source: NHST Events Press Release. 24 November 2011

http://www.mynewsdesk.com/uk/pressroom/nhst-events/pressrelease/view/scrap-to-improve-profits-in-osv-sector-708372