GMS weekly report on Bangladesh ship breaking industry for WEEK 11 of 2011:

A note of caution crept into the market this week with many buyers expressing alarm at the fact that the judge has yet to sign the court order to give the all clear for local yards to commence the import of ships once again for recycling.

The PM has already given her vote of confidence to the industry so it can only be a matter of time before the order actually is signed with many expecting it to be at some point over the coming week. However, it could be that the Bangladesh Environmental Lawyers Association are having their say in what conditions are being put into the order before it is released to the unsuspecting ship recyclers who claim to already have a good idea of what changes to expect.

With local steel prices dropping almost USD 20 upon the reopening of the market prices have been some way from what most cash buyers have been expecting. Decent bulkers have been seeing USD 500 and below (with many recently considering USD 490 to be a more realistic figure) and tankers some USD 25 ahead even though many end buyers are reluctant to commit to tankers in particular due to the imposing new rules concerning gas freeing of all tanks.

In amongst news of pricing and uncertainty of the status of the market, certain cash buyers were busy overpaying on units and having no other option but to cancel deals.

Oil the sales front this week, Korean owners STX brought several vessels onto the market for demolition or further trading. With both being worked with the Bangladeshi option in mind, the PAN VOYAGER (6,863 LDT) and OCEAN ISLAND (11,688 LDT) went to further trading buyers at levels just excess scrap and the Capesize bulker OCEAN PARK (25,402 LDT) found one speculative demolition buyer for late May delivery 'as is' South Korea for a firm USD 450/LT LDT.

Source: SteelGuru. (Sourced from GMS Weekly). 22 March 2011
http://www.steelguru.com/indian_news/GMS_weekly_report_on_Bangladesh_ship_breaking_industry_for_WEEK_11/196703.html

Bangladesh Hold-up Spreads Scrap Fears:

Concern is growing that once again the order to lift a scrapping ban in Bangladesh may not be issued in time for ships to catch the next beaching tide.

The judge responsible for signing the document which would bring Bangladesh back into the demo market after a 10-month gap is scheduled to make a written declaration this Sunday.

But broking sources are expressing strong doubts as to whether the much-sought paper will appear.

Ed McIlvaney of EBM Shipbroking says he hopes that full details of the regulations will be released on Sunday.

The High Court decision was handed down on 7 March but issuance of the written regulations has been delayed twice already. McIlvaney intimates that he believes pressure from environmental lobbyists and Non-Governmental Organizastions (NGOs) is causing the delays.

Brokers and other sources close to the situation say that up to 20 ships may already be at anchorage waiting to be beached, following the cash buyers’ quick moves to secure tonnage.

Greek broker Dimitris Koukas says he is deeply concerned that about half a dozen bulk carriers which have been sold through his company, Optima Shipbrokers, to Bangladesh will miss the coming beaching tides.

Koukas reveals that he has brokered the sales to Bangladesh of at least three capesize bulkers, including the Polembros-controlled 138,000-dwt Good News (built 1982), and another three ships involving totally upwards of 100,000 tonnes of steel.

"Because the court order has not come out in writing, people can’t get local documentation, letters of credit cannot be issued and nothing can be done," Koukas said.

He said there were issues that could arise such as whether the vessels waiting would have sufficient bunkers or supplies for the crews to last till the forthcoming beaching tides.

The next immediate beaching tide is from 19 to 22 March and the following one from 4 to 7 April.

In addition to requirements such as tankers being gas free for hot works and the removal of toxic gases and hazardous materials from ships before cutting activities can start, the regulations are also expected to contain a number of rules that it will not be possible to initiate immediately. These include the training of labourers at an institute to be supervised by the Bangladesh Marine Academy.

"All this has a negative impact on Bangladesh. People will think twice about selling to Bangladesh buyers, despite possibly better prices," Koukas said.

Source: Tradewinds. issuer: eshiptrading.com; 18 March 2011http://www.eshiptrading.com/InfoContent-41918-0.html

Attractive Prices Lure Ship Owners Towards Scrap Yards:

The dreadful state of the dry bulk market during the first couple of months of 2011, coupled with attractive prices have finally persuaded many ship owners, especially from the dry bulk segment of the market, to scrap their older vessels, in what could be a life-saving opportunity for many shipping companies.

As has been widely discussed, the faster rhythm of demolition activity could help alleviate the burden of tonnage oversupply issues that has weighed down the dry bulk market in recent months.

With Bangladesh finally reopening for business after almost 10 months of null activity, things could be picking up pretty soon. Already there are reports of rejuvenated activity in Bangladesh, although according to the latest report from Golden Destiny, some of the key rules imposed in Bangladesh suggest that toxic gases and hazardous materials from vessels would need to be cleaned prior cutting activities commence. Also, gas free for Hot Works certification would now be required at Bangladesh for wet tonnage.

No vessel that arrives locally for recycling would be permitted to anchor unless the vessel arrives in "Gas Free" safe for "Hot Works" condition.

No ballast water can be discharged at outer anchorage or at local yards.

Labourers / workers under the age of 18 would not be permitted to work on the yards.

Labourers permitted to work on local yards would need to be trained at an institute supervised by the Bangladesh Marine Academy.

"Pakistan was struggling to pick up units even when the major shiprecycling nation was out of the game and now it seems even harder to compete with India and Bangladesh. However, Pakistan buyers’ appetite remains and they are prepared to pursue aggressively new units.

China once more has been left in the last rankings, but it still snaps some high LDT purchases after its aggressive bidding on capesize tonnage.

Overall, the demolition business appears to follow an upward trend from the beginning of New Year, in terms of volume of transactions and scrap prices. Dry market’s plunge within January stimulated owner’s decision for scrapping their overaged units and pushed scrapping business 180% higher from January-February 2010. Bulk carriers seem to hold the lion’s share of scrapping business during the year to date, 36% of the total number of vessels reported to have been headed to the scrap yards, while liners follow grasping 28%. Scrap prices are hovering at higher levels from the end of 2010, with demo countries paying more than $450/ldt for dry and wet cargo, while Bangladesh’s opening seems to drive the market at levels excess $500/ldt" said Golden Destiny.

According to the shipbroker’s report, during January – February 2011, 116 vessels were reported to have been headed to the scrap yards equalling a total deadweight of 5,151,389 tons, with India being on the frontline grasping 59% of the total business. In terms of reported number of transactions, the demolition activity is 4% lower from 2010 activity, but the increased volume of bulk carrier’s demolition activity brings relief in the oversupplied segment with hopes for further scrapping in the future.

In the tanker sector, demolition activity is 48% lower than last year’s levels with liners keeping their high pace of business. During January to February 2010, 122 vessels reported to have been sent for scrap equaling a total deadweight of 4,098,825 tons with Bangladesh paying $360/ldt for dry and $400/ldt for wet cargo, India being in the sideline and tankers grasping 28% of the total business. At the end of February 2009, scrap rates were at much lower levels with Bangladesh paying $275/ldt for dry and $315/ldt for wet cargo, with bulk carriers being once more in the front run after the credit crunch of 2008, holding 45% of the total scrapping business.

Meanwhile, during the past week, several vessels are being reported this week in anticipation of the Bangladesh market opening at firm prices xs $500/ldt. With the news of Bangladesh market reopening, after almost 10 months of closure, scrap prices seem to have firmed and the volume of scrapping activity gets more torrid. Scrap buyers in Chittagong have been starved for a long time and now seem to be ready to bid aggressively new tonnage for their yards that have been laid up for several months.

The demolition scene seems to change with India and Pakistan trying to compete with the aggressive Bangladesh, while market in China has softened by $20-$30/ldt from the highs in mid – February. Bangladesh has jumped in the first rankings this week, in terms of scrap prices, by offering $500/ldt for dry and $525/ldt for wet cargo. Prices in India have also cooled off by offering $465/ldt for dry and $490/ldt for wet cargo.

Even the aggressive bidding by some cash buyers in Chittagong, there are still some worries about the full compliance of Bangladesh breakers with the restrictions imposed by the Bangladesh High Court. The week ended with 15 vessels reported to have been headed to the scrap yards of total deadweight just 349,509 tons. In terms of reported number of transactions, the demolition activity has been marked with a 11.7% w-o-w decrease with vessels of mainly bulkcarriers & tankers appearing in the frontline. In terms of scrap rates, the highest scrap rate has been achieved this week again by India for a 4,887 ldt gas tatnker at $ 540/ldt. At a similar week in 2010, 12 vessels were reported for scrap indicating a positive yearly change 25% in terms of reported number of transactions with the majority of vessels being tankers.

Source: Hellenic Shipping News. issuer:eshiptrading.com. 21 March 2011

http://www.eshiptrading.com/InfoContent-41936-4.html

Bringing safe water to communities: World Water Day; 22 March 2011

Despite the UN General Assembly declaring that access to safe water is a human right, thousands die each day because of water-related diseases, and many countries are not expected to meet the UN Millennium Development Goals on water.

Bringing clean water to cities is critical to achieving a healthier and more prosperous world. Globally, residents of rural areas are moving into cities in record numbers. By the year 2050, an estimated 70% of the world's population will be living in urban areas (1). To highlight the water-related needs of these fast-growing cities and the subsequent challenges faced by governments and utility companies, the theme for this year's World Water Day, March 22, 2011, is Water for Cities:

Responding to the Urban Challenge:

Many of the world's water systems are poorly maintained. More than half of the water might be lost to leakages and construction of illegal connections by nonpaying users (2). Even in cities with well-developed public water networks, the water might not always be safe to drink because of poor disinfection practices or because the water becomes contaminated once it is in the distribution network (3).

Water plays a key role in many goals of international development programs (2,4). Recent cholera outbreaks in Zimbabwe and Haiti highlight the potentially devastating consequences of deficiencies in urban water supplies (5,6). In addition to the physical health of the population, water availability and quality is fundamental for agricultural production, food safety, economic growth, educational opportunities, and environmental management.

Additional information about World Water Day activities and CDC's efforts to improve water quality and prevent disease is available at http://www.unwater.org/worldwaterday/index.html and

http://www.cdc.gov/healthywater/global.

References:

1. United Nations Human Settlements Programme (UN-HABITAT). State of the world's cities 2008/2009: harmonious cities. Nairobi, Kenya: UN-HABITAT; 2008. Available at

http://www.unhabitat.org/pmss/listitemdetails.aspx?publicationid=2562 Accessed March 14, 2011.

2. World Water Assessment Program. The 3rd United Nations world water development report: demographic, economic and social drivers. Paris, France: United Nations Educational, Scientific and Cultural Organization (UNESCO), and London, England: Earthscan; 2009. Available at http://www.unesco.org/water/wwap/wwdr/wwdr3/pdf/12_wwdr3_ch_2.pdf Accessed March 14, 2011.

3. Lee EJ, Schwab KJ. Deficiencies in drinking water distribution systems in developing countries. J Water Health 2005;3:109--27.

4. United Nations. United Nations millennium declaration. Presented at the United Nations General Assembly, 8th Plenary Meeting. New York, NY; September 8, 2000. Available at http://www.un.org/millennium/declaration/ares552e.htm Accessed March 14, 2011.

5. World Health Organization. Cholera: global surveillance summary, 2008. Wkly Epidemiol Rec 009;84:309--24.

6. CDC. Update on cholera --- Haiti, Dominican Republic, and Florida, 2010. MMWR 2010;59:1637--41.

The 6th Annual Ship Recycling Conference 2011

Greener Ship Recycling: Seeking Sustainability

Tuesday 14 - Wednesday 15 June 2011, Grange City Hotel, London

Key Issues include:

• Bangladesh: it's impact on scrap prices and recycling capacity

• Current status of the Hong Kong Convention for the Safe and EnvironmentallySound Recycling of Ships and regional legislation – is a single global standard for ship recycling achievable?

• Shipowners' options for green ship recycling – innovative ways to implement green recycling processes

• Identifying the immediate goals of the maritime sector before the Hong Kong Convention becomes mandatory

• Recent developments and outlook for the world's leading ship recycling nations: India, Pakistan, Bangladesh, China and Turkey

• Business development opportunities for ship recycling facilities in other regional markets: the case for Europe

Expert Speakers:

> Dr. Nikos Mikelis, IMO

> Julio Garcia-Burgues, European Commission

> Henning Gramann, Green Ship Recycling Services

> Cecilia Müller, Maersk Line

> Dr. Anil Sharma, GMS

> Grant Hunter, BIMCO

> Stephen Drury, Holman Fenwick Willan

> Steve Wansell, Mideast Shipping & Trading

> Rakesh Bhargava, Wilhelmsen Ship Management

> Dimitri Ayvatoglu, LEYAL Ship Recycling Ltd., Turkey

> Adnan Ul-Hasan, Registro Italiano Navale (RINA) Pakistan

> Dr. Shyam Asolekar, Indian Institute of Technology Bombay (IITB)

> Dr. N. M. Golam Zakaria, Bangladesh University of Engineering and Technology (BUET)

------------

Chair's welcome & opening remarks

- Henning Gramann, Director, Green Ship Recycling Services

SHIP RECYCLING MARKET:

Market watch 2011: volume, prices, forecasts

- Steve Wansell, General Manager, Mideast Shipping & Trading

REGULATORY UPDATE: CURRENT & FUTURE INTERNATIONAL STANDARDS

Basel Convention: current status of Equivalency

• Latest developments

• COP 10: what to expect

• Potential future relationship between Basel and Hong Kong

EU regulatory review:

• EU's policy on ship dismantling in light of the Basel and Hong Kong Conventions

- Julio Garcia Burgues, Head of the Waste Management Unit, Directorate General Environment, European Commission

OPEN DISCUSSION FORUM:

The politics of ship recycling: the impact of current & future regulations on the recycling sector

Panelists will reflect on current and future regulatory standards and discuss how the industry can overcome the frequent conflicting policies of various stakeholders to achieve a single global standard for the ship recycling industry.

Panel moderator & introductory remarks:

- Dr. Nikos Mikelis, Head, Marine Pollution Prevention and Ship Recycling Section, Marine Environment Division, IMO

Panelists to include:

I. Tuomas Aarnio, Legal Adviser, Ministry of the Environment,

II. Environmental Protection Department, Finland

III. Claude Wohrer, Secretariat General de la Mer, Chargee de Mission, France

IV. Ingvild Jenssen, Director, NGO Shipbreaking Platform

GREEN SHIP RECYCLING: FINANCIAL, LEGAL & OPERATIONAL REQUIREMENTS

SHIPOWNER'S PERSPECTIVE:

Ship recycling processes: a measure of Social Corporate Responsibility

- Cecilia Müller, Corporate Responsibility Manager – Sustainability, Maersk Line

Green recycling: what solutions are available to shipowners?

• Evaluating shipowners' options

• Counting the costs – does green ship recycling pay?

• Does company CSR outweigh the cost of green recycling?

- Rakesh Bhargava, Global Green Re-Cycle Manager, Wilhelmsen Ship Management

Extending the cash buyers' service portfolio:

• Hong Kong Convention: role of cash buyers

• Assisting shipowners to prepare for an Inventory of Hazardous Material (IHM)

• Yard vetting – assistance in preparation for SRP approval and supervision of recycling as per convention requirements

• Assisting shipyards with ISO certifications

- Dr. Anil Sharma, President, GMS

SHIP RECYCLING FACILITIES:

Greening of ship recycling in India: challenges & way forward:

- Dr. Shyam R. Asolekar, Professor, Centre for Environmental Science and Engineering (CESE), Indian Institute of Technology Bombay (IITB)

Development of ship recycling facilities in Bangladesh:

• An overview of current developments

• Performance and contribution towards socio-economic development

• Case study: addressing relevant issues on the basis of field data

• Challenges ahead

- Dr. N. M. Golam Zakaria, Associate Professor, Department of Naval Architecture and Marine Engineering, Bangladesh University of Engineering and Technology (BUET)

Norad's ship recycling project in Bangladesh:

• Main focus – Norwegian contribution

• Stakeholders – ownership

• Importance to the Bangladesh economy

• Challenges to include physical infrastructure

- Bj rn Holter Eriksen, Director, Norad

Ship recycling SWOT analysis for India & Bangladesh

(SWOT – Strength, Weakness, Opportunity and Threat)

• Case studies:

Ship clearance for recycling – anchorage to breaking [breakers] – India and Bangladesh

Ship recycling processes and handling of hazardous waste

- Dharmesh Jani, Managing Director, Creative Consultants (India)

Development of ship recycling facilities in South Asia:

Pakistan:

Traditional working practices

Restructuring and local mindsets

Opportunities and threats

- Adnan Ul-Hasan, Regional Inspection & Certification Agency, Registro Italiano Navale (RINA) Pakistan

OPEN DISCUSSION FORUM:

Activities in the major international ship recycling nations: lessons learned & future prospects

I. Dimitri Ayvatoglu, Department Head, LEYAL Ship Recycling Ltd., Turkey

II. Dr. Shyam R. Asolekar, Professor, Centre for Environmental Science and Engineering (CESE), Indian Institute of Technology Bombay (IITB)

III. Dr. N. M. Golam Zakaria, Associate Professor, Department of Naval Architecture and Marine Engineering, Bangladesh University of Engineering and Technology

IV. Adnan Ul-Hasan, Regional Inspection & Certification Agency, Registro Italiano Navale (RINA) Pakistan

V. Dharmesh Jani, Managing Director, Creative Consultants (India)

VI. Nigel E Smith, International Registrar of Shipping & Seamen St.Kitts and Nevis International Ship Registry

Regional markets: opportunities for sustainable ship recycling in Europe

Private and public vessels: the case of Spain

Actions taken in the EU

EU LIFE+ project RECYSHIP: project outline

Current status and projections: the RECYSHIP proposal

- Antonio Barredo Arias, Technical Director, LIFE+ Project Recyship

Chair's concluding remarks & close of conference

_________________________________________________________

SEPARATELY BOOKABLE CONFERENCE WORKSHOP:

Banned Substances & Green Ship Recycling: How to Minimise Shipowners' Liability

Monday 13th June 2011, Dexter House, London

Key Highlights Include:

- Detecting asbestos-containing materials (ACMs) onboard current vessels and new buildings

- Identifying operational risks for shipowners and related liability issues for the maritime industry

- Examining methods for the management of ACMs onboard

Workshop Leaders:

• Henning Gramann, Director, Green Ship Recycling Services

• Marc van de Poel, Managing Director, m.a.r.c BV Maritime Asbestos & Recycling Consultant

-----

Workshop leader's opening remarks, introduction & workshop objectives

- Henning Gramann, Director, Green Ship Recycling Services

Asbestos-containing materials (ACMs) onboard current vessels & newbuildings

• Appearance, detection and sources of asbestos

• Where to look for asbestos

• Other materials of concern

• How to avoid "unwanted installation" of asbestos

• Asbestos on newbuildings and new asbestos materials

- Marc van de Poel, Managing Director, m.a.r.c BV Maritime

Asbestos & Recycling Consultant

Operational risks for shipowners & related liability issues for the maritime industry

• Compensation claims by and against shipowners

• Chain of information and data management: how to stay clean

• Trustworthy or not: how to handle the information received

• Flag and Port State Control matters

• Loss of charter contracts and bans from territorial waters: operating risks for shipowners

- Henning Gramann, Director, Green Ship Recycling Services

Open discussion:

Delegates review the morning's presentations and put questions to the speakers.

Considerations for management of ACMs onboard

• Why should shipowners know about asbestos onboard?

• How to reduce risks and manage the problem

• It is not always necessary to remove asbestos: what are key considerations when you do?

• How can you raise crew awareness?

• What is the legal framework in which managers operate?

• How to avoid disproportional abatement costs

- Marjolijn Wannet, Consultant, m.a.r.c BV Maritime Asbestos & Recycling Consultant

Interactive delegate discussion groups:

Delegates have an opportunity to discuss in more specific detail matters arising from the workshop. Topics are chosen by the workshop leader.

Workshop leader's summary & close of workshop

Source:

http://www.informaglobalevents.com/event/shiprecycling/download/?id=2983

http://www.informaglobalevents.com/appdata/downloads/shiprecycling/KT0222_Ship_Recycling_2011_Lo.pdf

informa maritime events. 15 March 2011