2011 International Ship Recycling Market Review and Outlook ...

Gradual recovery in the world economy against the backdrop of the global scrap market in 2010 which showed the characteristics of the ship-breaking 2011 the market prospects conduct of this arti ...Gradual recovery in the world economy against the backdrop of the global scrap market in 2010 which showed the characteristics of the ship-breaking 2011 the market prospects conduct of this article for your reference.

Global: dismantling scrap prices decline

According to the British Clarkson Inc. 2010 a total dismantling of the global Fei Gangchuan about 22.3 million dwt. Of these 11.9 million dwt tanker dismantling demolition of more than 10000 dwt and 500 million dwt bulk carriers. China India Bangladesh Pakistan dismantling the four ship-breaking power 2.3 million dwt respectively 770 million deadweight tons 400 million deadweight tons and 400 million dwt four shipbreaking countrys total 18 million lorry dismantling tons (data like of the end of November 2010). Decreased due to the number of Fei Gangchuan shipbreaking in November 2010 the international shipbreaking prices continue to raise the average scrap cost of oil tankers 459 ~ $ 469 / light ton up 0.77% to 0.91%; bulk carrier ship-breaking cost of the average $ 436 / light ton up 0.23%. According to statistics in 2010 the amount will not exceed the global dismantling 2009 1014 31.5 million dwt dismantling volume decreased significantly compared with 2009 the corporation does not appear Clarkson had on the global shipbreaking industry in 2010 showed a fold increase in the over-optimistic expectations.

I trust that first of all there the situation was the beginning of the international financial crisis broke out Fei Gangchuan price is relatively low in 2010 the international price of scrap vessels compared with the same times rising to India and Bangladesh The ship-breaking oil tankers and bulk carriers in the price comparison Indias ship-breaking price of oil tankers in the 11 months of 2010 compared with 2009 the rate of increase of 38% to 74% bulk carriers up to 35% to 83%; Bangladesh State of the ship-breaking oil tanker prices rose 18% rate to 58% 16% bulk carriers ~ 56%. London brokers reported that the vessel dry bulk carriers and oil tankers in the ship-breaking prices generally range from 400 to 450 tons per light dollars and in April 2010 October and November the Indian ship-breaking price of oil tankers actually $ 470 per tonne of light high while in 2010 the international steel market is showing the tendency of the first rose and then fell. Gradual recovery in the global economy driven first half of 2010 the international steel inquire and raw material prices are significantly increased while traders and end users have begun to replenish stocks promote the steel market volume and price go. After entering May with the economic stimulus policies in some countries to phase out and the debt crisis intensified in Europe the international steel inquire growth started to decline the market prices decline more and more narrow space ship-breaking deal profits the amount of the global dismantling showing signs of fatigue. Looking back in 2010 due to the single-hull tankers has entered the stage of accelerated exit especially the first 4 months the proportion of retirement accounts for dismantling the tanker about 50% of the total.

Secondly the international shipping market before the crisis continued prosperity and new shipbuilding number of blowout growth resulting in several years of Building demolition little more than the situation and vessel the total surplus leading to the dismantling of this should be scrapped or no time dismantling the ship the ship used excessive backlog. The reason shipping companies and ship-breaking scrap cash alternative to the reality of a ship-breaking industry highlighting the role of the main promoter of red against the market trend. After 2009 a blowout of the large disassembled in 2010 fell back behind the ship-breaking in the ascribed.

China: the number of dead ship dismantling was somewhat lower

Since 2009 the domestic ship recycling industry continues to heat up the shipbuilding industry ship-breaking like the assisted enterprises have gradually increased can be said that the domestic ship-breaking industry in 2009 reached a peak of unprecedented prosperity except just in the past is no longer reproduce the 2010 2009 as the scenery. According to data released by the Chinese Ship Recycling Association as of the end of December 2010 the Chinese Ship Recycling Association dismantling all types of waste enterprises amounted to close to 300 ships 200 million tons of light representing more than 440 ships in 2009 3.23 million tons of light compared to a larger drop. The main cause of this situation the Chinese Ship Recycling Association stakeholders trust that the international prices of used boats continues to raise approaching the domestic market price of scrap even the inversion phenomenon greatly inhibits the amount of domestic ship recycling companies dismantling .

The hulk purchase more depending on available resources in the upper reaches of the ship waste and scrap steel market require for these two aspects of the downstream market. Domestic enterprises due to the time of delivery dismantling times the impact of price changes in the downstream market and the upper phase-out hulk by the high prices scrap prices are low and other downstream factors often produce economic benefits of lower scrap and even losses.

Outlook 2011: Global shipbreaking speed will slow down

Since early 2010 affected by the global economic recovery the global container fleet in 2011 a net increase of about 92 million TEU an increase of 6.4% in particular strong growth in the number of very large container ships of which more than 8000TEU capacity container ships increased by 23.2% . In 2011 the number of dry bulk carriers may be delivered to a new record high the overall capacity will increase 14% with capacity expected to exceed the total size of 600 million dwt. 2011 will be another peak year for the delivery of new vessels surplus capacity will be more serious. However the number of global oil tanker was dismantled in 2011 the growth rate will be slowed. The real recovery in the shipping market must rely on U.S. and European markets to stabilize pick up otherwise shipping market is likely to drop back into crisis that is surplus capacity may in turn will bring to market a trace of a thriving ship-breaking dawn especially in dry bulk carrier market.

Chinas shipbreaking industry in times of adversity is another popular promoter from the higher require for steel scrap. Steel consumption production has improved significantly as a key raw material iron ore prices have continued to rise leading to a surge in demand for steel scrap substitutes so that the final production is a ship-breaking industry so scrap the benefit. In recent years Chinas dependence on imported iron ore continued to improve the situation hard to change iron ore prices Xuzhang tendency has been formed. In this case the scrap as a renewable resource with low wear and tear high utilization and low pollution emissions power saving and environmental protection advantages between the main alternatives for the iron ore demand increased significantly.

Source: goopl.com’. 011-03-15

http://goopl.com/topics/view/id-975

Question and Answer about ShipBreaking in European Parliament:

Parliamentary questions:

14 February 2011

Question for written answer

to the Commission

Rule 117

Georgios Koumoutsakos (PPE) and Konstantinos Poupakis (PPE)

Subject: Safe shipbreaking  

Every year, about 1000 vessels of all types are taken to shipbreaking yards, where approximately 95% of their metals are recovered. Tighter rules on safety and environmental protection in western markets have shifted shipbreaking activities to coastal areas in southern Asia. According to the NGO Platform on Shipbreaking, shipbreaking conditions in these areas violate minimum standards of protection of workers and respect for the environment.

Bearing in mind the 2007 Green Paper on Better Ship Dismantling and the guidelines of the International Labour Organisation and the International Maritime Organization on ship recycling, will the Commission say:

— How could it provide enhanced technical assistance to countries where shipbreaking takes place?

— Within the framework of effective cooperation with those countries, does it consider it appropriate and useful to propose setting up a network of EU-approved shipbreaking yards?

— Does it consider that ship recycling is economically viable and, if so, how could it be combined with respect for environmental standards and the appropriate health and safety rules at work?

Answer(s)

E-1140/11EN

Answer given by Mr Potočnik

on behalf of the Commission

(11.3.2011)

The Commission has adopted an EU Strategy for Better Shipdismantling in 2008. It welcomes the adoption of the Hong Kong Convention on Safe and Environmentally Sound Recycling of Ships and supports its early implementation and ratification. In addition, the Commission supports the development of a set of technical guidelines aiming to ensure a safe and sound recycling of ships through IMO's Maritime Environmental Protection Committee (MEPC). In order to accelerate the entry into force of the Hong Kong Convention, the Commission has taken steps encouraging Member States to ratify it.

As announced in this Strategy, the Commission has launched a study to examine the feasibility of establishing a list of green and safe recycling facilities[1] and will continue to assess the feasibility of this option. The Commission also supports international developments on this issue. For instance, the IMO Secretariat has organised a series of workshops with participants from major recycling countries. In addition, IMO, ILO and the Secretariat of the Basel Convention have set up a Global Programme for sustainable ship recycling in order to streamline their actions and avoid duplication of work in recycling countries.

The economics of the ship dismantling industry and the dynamics of the business cycles within the shipping sector is a very complex matter, because a wide range of factors influence the fluctuations of the prices in the different markets of this sector. The ship dismantling market has been explored in a study launched by the Commission to examine the implications of the accelerated phase-out scheme of single hull tankers[2]. While ship dismantling may be vital for the economies of certain countries, this sector needs to be transparent, environmentally friendly and above all safe working conditions must exist. A number of ship-owners have already taken the step to recognise their responsibilities and have chosen to invest in green and safe recycling facilities.

1. http://ec.europa.eu/environment/waste/ships/pdf/bio_ship%20dismantling.pdf

2. http://ec.europa.eu/transport/maritime/safety/doc/prestige/2004_06_scrapping_study_en.pdf

Source:

http://www.europarl.europa.eu/sides/getDoc.do;jsessionid=2483CDB23AB4BBEA4C8F89BCDDE538BD.node1?language=PL&reference=E-2011-001140&type=WQ&secondRef=0

http://www.europarl.europa.eu/sides/getAllAnswers.do?reference=E-2011-001140&language=PL

Derelict vessel to be enclosed by cofferdam, scrapped:

Contractors are now planning to dismantle the beached and broken Davy Crockett right where it sits.

Photo by

Steve Lane

Workers will encircle the 431-foot barge with a cofferdam, forming an enclosed area, and take it apart piece by piece. The original plan of floating it away to a dry dock proved to be untenable, marking another setback in an operation that’s already the most expensive shipwreck in Washington history.

Until this week, federal and state authorities had been planning to cut the ship in two and float both halves away to a dry dock.

But officials said they were unable to reach agreements with local shipyards.

“Unfortunately, the efforts to gain utilization of the local dry docks for destruction of the Crockett were unsuccessful due to a litany of safety, complex environmental and liability issues,” U.S. Coast Guard Capt. Daniel LeBlanc said.

Instead, contractors will encircle the vessel with 850 feet of metal sheet pilings to allow workers to safely dismantle the ship while containing pollution.

Construction of the cofferdam will begin as soon as Friday.

The sheet pilings and a secondary silt barrier will enable contractors to cut apart the Crockett while minimizing the risk of PCB-tainted oil or bunker fuel escaping into the river, state and federal officials said in a conference call on Monday.

But it will be expensive.

The operation had already consumed $9.5 million as of Monday, LeBlanc said, and it currently has the ability to tap another $4 million.

Costs have risen throughout the saga, which began two months ago after the Coast Guard ordered owner Brett Simpson of Ellensburg to remove oil and garbage aboard the damaged ship. Simpson had been attempting to scrap the vessel while it was afloat, but the process caused it to buckle and partially sink.

On Jan. 27, three days after the Coast Guard assumed Simpson complied with its order, oil-spill specialists with the state Department of Ecology traced a sheen 15 miles upriver to the Davy Crockett.

The Coast Guard then federalized the response.

The cleanup is being funded by the Oil Spill Liability Trust Fund, a federal fund created by a tax on petroleum products. Simpson has not participated in the cleanup and is the subject of a parallel investigation by federal authorities.

LeBlanc said officials won’t have a final cost estimate at least until the lead contractor — Seattle-based Ballard Diving & Salvage — submits a formal destruction plan later this week.

“Once we get the plan for the destruction phase, that will give us a better idea,” LeBlanc said. “Following the removal of the vessel, we will then have a disposal plan for steel and oily water, a follow-up sampling of sediment within the cofferdam and remediation cost to restore the environment in that location.”

The contractor’s best estimate was to finish the operation in 16 weeks, LeBlanc said.

Ron Holcomb, on-scene coordinator for the Washington Department of Ecology, said Ballard has been asked to procure the biggest possible crane to reduce the number of cuts. The idea is to load big chunks of the vessel aboard a waiting barge.

“This cofferdam, when installed, will provide a very high level of environmental protection around the Davy Crockett,” Holcomb said.

The sheet pilings are 3/8 of an inch thick, with 25-inch-wide interlocking joints. The joints won’t be watertight, but the cofferdam combined with the secondary nonpermeable silt barrier should effectively trap pollutants as contractors work. LeBlanc said the cofferdam will take 12 days to install.

Meanwhile, the Coast Guard is planning to set lighted buoys to designate a 300-foot safety zone around the vessel.

“We did have some encroachment of recreational fishermen a couple of weeks ago,” LeBlanc said. “Since the salmon season has kicked into gear now, we’re concerned about their safety and also the safety of the workers at the site.”

The recovery effort has already eclipsed the cost of removing the S.S. Catala from the beach at Ocean Shores in 2006.

That shipwreck actually occurred in 1965, but was exposed three decades later by shifting sands. When oil was discovered entombed aboard the 229-foot vessel, the state Department of Ecology embarked on what became the most expensive maritime cleanup in state history — $7.2 million.

The Davy Crockett is already costlier.

“It’s much more complicated here, where everything is on water,” Holcomb said.

Source: The Columbian. Eric Robinson (erik.robinson@columbian.com). Tuesday, March 29, 2011.

http://www.freerepublic.com/focus/f-news/2696291/posts

Ship recycling: UK Ship Recycling Strategy - Defra

In 2007, Defra issued  the UK Ship Recycling Strategy following reviews carried out by Defra (via the Ballard Review) and by the Environment Agency to identify lessons learnt after the import of four decommissioned US naval ships in 2003 and following recommendations made by the Environment, Food and Rural Affairs Committee in its report “Dismantling Defunct Ships in the UK”. (For more information on these reports, please see The National Archives).

The Strategy establishes domestic policy for the recycling of UK Government-owned vessels, sets out relevant waste controls and makes recommendations for owners and operators of UK flagged vessels.  It encourages the development of further facilities to recycle ships in an environmentally sound manner within the UK.  It also informs the UK position on international work.

The Strategy is available in 5 languages beside English:

• Chinese
• French
• German
• Portuguese
• Spanish

The Regulatory Impact Assessment that was issued alongside the Strategy can be viewed at: UK ship recycling strategy Final Regulatory Impact Assessment

Alongside the Strategy, Defra issued detailed guidance to provide ship owners and ship recyclers with clear, practical guidance on the regulatory regimes pertaining to ship recycling in the UK: Overview of ship recycling in the UK Guidance

The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships:

The Hong Kong Convention was adopted at an International Maritime Organization (IMO) diplomatic conference in May 2009, following over 3 and a half years work with input from IMO Member States and relevant non-governmental organizations in cooperation with the International Labour Organization and parties to the Basel Convention.

The Hong Kong Convention aims to ensure that end of life ships do not pose any unnecessary risks to human health, safety and the environment and aims to address all issues around ship recycling  from design and construction, through operation and  finally to recycling.  It will come into force once ratified (or signed without reservation as to ratification) by a sufficient number of states.  Pending its coming into force, the IMO is developing a raft of guidance to support the Convention.

More information on the Convention is available at:

International Maritime Organization:

In the UK, the Department for Transport leads on issues relating to the Hong Kong Convention with input from Defra.

An EU Strategy for Better Ship Dismantling:

In November 2008, in anticipation of the Hong Kong Convention, the European Commission published a Communication “An EU Strategy for Better Ship Dismantling”. The Strategy envisaged an integrated policy approach of implementing the key elements of the Hong Kong Convention, with the possibility of supplementing these requirements within the EU; taking measures to encourage voluntary action from the shipping industry pending the coming into force of the Convention; and considered the possibility of improving the enforcement of the current waste shipment law in relation to ships.

More information on the European Commission’s Strategy and subsequent work

In the UK, Defra leads on negotiations within the EU on this Strategy.

Page last modified: 30 March 2011

Source: Defra

http://www.defra.gov.uk/environment/economy/waste/ship-recycling

An effort is underway to save the historic ship Olympia:

PHILADELPHIA - You could call it a battle cry to action. The Independence Seaport Museum, and a host of partners has issued an urgent call for the preservation of the Cruiser, Olympia for future generations.

"There's nothing like it in the world, and there never was anything quite like in the world," said Jesse Lebovics.

In fact, it is the world's oldest floating steel warship, and the only surviving naval ship of the Spanish American War.

In 1898, Olympia brought its big guns to bear upon the Spanish fleet in the Philippines. Commodore George Dewey and his flagship were Superstars that year as they crushed the Spanish fleet in Manila Bay in less than six hours.

It was the first decisive battle in the Spanish-American war, and it helped transform a young nation into a world power.

But that was more than a century ago.

"The Olympia is slowly, structurally decaying and our biggest fear is her potentially sinking of some other damage that would preclude her from ever being seen again," explains the ship's manager, Jesse Lebovics.

The ship is in critical need of hull and deck repair, and dry-docking, which is beyond the capacity of the Seaport Museum. It is seeking to transfer stewardship of Olympia to another organization.

"It's time for someone else to take care of the baby. We love her, but other people do also," said Captain John Gazzola.

The ship is safe for touring, which gives you a sense of extraordinarily unique maritime history.

"It also gives you a sense of what our forefathers sacrificed for us and future generations," said Captain Gazzola.

Not many museums give you the opportunity to stand on the artifacts.

"There's a lot of very hard work that goes into that," Captain Gazzola said.

Captain Gazzola says to ensure the long-term preservation of the Olympia, ownership of the vessel must be transferred to an able steward within two years, otherwise, officials would pursue scrapping or sinking the ship on a reef.

Source: By Lisa Thomas-Laury. Wednesday, March 30, 2011

http://abclocal.go.com/wpvi/story?section=news/local&id=8036402