24 March 2012

Indian company buys Exxon Valdez, likely to scrap notorious tanker blamed for Alaska oil spill:

NEW DELHI — The notorious Exxon Valdez tanker, responsible for one of the worst oil spills in U.S. history two decades ago, has been bought by an Indian company almost certainly to be scrapped for its steel and spare parts.
Best Oasis Ltd. would not disclose the price or purpose of its purchase, but it buys old ships solely to dismantle them, reuse salvageable material and discard the rest.
On March 24, 1989, millions of gallons of crude oil spewed into Alaska’s ecologically sensitive Prince William Sound when the Exxon Valdez dashed against rocks, coating the shoreline with petroleum sludge and killing nearly 40,000 birds. The spill caused incalculable environmental damage and demolished the fishing industry in the area.
Texas-based Exxon Mobil Corp., spent $900 million in restitution in a 1991 settlement and is battling more litigation from the spill.
The tanker moved on, with five name changes since the spill and ownership changing repeatedly, apparently to keep the ship in use while distancing it from the disaster.
Best Oasis official Gaurav Mehta said his company bought the ship recently. It’s now a converted ore carrier known as the Oriental Nicety, but he did not disclose its current location and status.
“I can confirm that Best Oasis has bought the tanker, but can give no details till we take delivery of it,” Mehta said.
The ship is 26 years old, not significantly aged for tankers, but it was considerably damaged in its lifetime. It was split open by rocks in the Alaska spill and was damaged in a collision in the South China Sea in 2010.
Hong Kong-based Best Oasis is a wholly owned subsidiary of Priya Blue Industries in the western state of Gujarat.
India has one of the world’s largest industries for breaking down old ships and oil tankers in the town of Alang, along the Gulf of Cambay in Gujarat.
Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Source: Washington Post. 23 March 2012

EU Ship Recycling proposal will not stop the dumping of toxic ships: NGO Shipbreaking Platform

Brussels -– Today the European Commission presents its proposal for regulating the dismantling of toxic end-of-life ships. So yesterday the NGO Shipbreaking Platform, a Brussels-based coalition of environmental, labour rights and human rights organisations was invited to meet European Environment Commissioner Janez Potocnik. During the meeting the Platform reiterated its call on Europe to stop the unjust practice of dumping toxic ships on the poorest communities of South Asia and already identified important areas in the upcoming proposal that will need to be strengthened.
80 percent of the global end-of-life ships are broken in Bangladesh, Pakistan and India on tidal beaches whose soft sands cannot support crucial safety measures such as heavy lifting or emergency response equipment and which allow pollution to seep directly into the delicate coastal zone environment.
Last week during a ship recycling conference in Singapore, the European Commission announced its intention to propose a new regulation on ship recycling, which will transpose the International Maritime Organisation’s Hong Kong Convention on Safe and Environmentally Sound Ship Recycling – and, at the same time, remove ships from the current European Waste Shipment Regulation. Commissioner Potocnik informed the NGO Shipbreaking Platform that the new regulation will seek to regulate only ships sailing under a European flag. The Platform is concerned that the proposal, which will be published tomorrow, will do little to reverse the current trend of unsafe beach breaking with no care for waste management in developing countries.
Beyond the Hong Kong Convention:
“With no economic incentive to change current shipping and shipbreaking practices, and faced with the reality that there are few, and probably will be even less, European flagged ships at end-of-life, the Commission’s proposal effectively rids Europe of its responsibility – and opportunity – to provide a sustainable solution to stop toxic ships from poisoning workers and the environment in some of the world’s most vulnerable countries,” said Ingvild Jenssen, Director of the NGO Shipbreaking Platform.
The Platform believes that the Hong Kong Convention provides for weak grounds on which to settle a solid regulatory framework and therefore applauds the introduction of stricker requirements at the European level both with regards to clean ship building and environmentally sound ship dismantling. But, while the Commission claims that the upcoming European proposal goes beyond the Hong Kong Convention in taking a clear stance against the beach breaking method and only allowing EU flagged vessels to be sold to recycling facilities approved by the EU, in reality these requirements will only affect a small number of ships.
Two-thirds under non-European flags:
Whereas 40 percent of the world fleet is owned by European-based companies, only a small percentage is sailing under a European flag at end-of-life. In 2011 almost two-thirds of all European-owned vessels sold for breaking in South Asia were registered under non-European flags. The majority of these flags, such as St Kitts and Nevis; the Bahamas; Comoros; and St Vincent and Grenadines, are well-known for sustaining substandard practices,their lack of transparency and weak enforcement of international maritime legislation.
The Platform and international trade union organisations have repeatedly stated that the flag state system – and its so-called flags of convenience (FOC) – provides for legal loopholes and cheap disposal routes for the dumping of hazardous wastes. To counter concerns with lack of enforcement only relying on flag state implementation, proposals to introduce economic mechanisms such as port taxes or insurance schemes were initially supported by Commission expert reports. In the meeting with the NGOs the Commission was unable to justify why these proposals have not been included in the final regulatory proposal.
In the coming weeks, the Platform will produce a deeper analysis of the Commission proposal and will continue its advocacy work during the co-decision procedure in the European Council and the European Parliament.
Quelle: NGO Shipbreaking Platform
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Source: 23 March 2012

NGO warns EU Ship Recycling proposal will not stop the dumping of toxic ships:

Brussels, 22 March 2012 – A day before the European Commission presents its proposal for regulating the dismantling of toxic end-of-life ships, the NGO Shipbreaking Platform, a Brussels-based coalition of environmental, labour rights and human rights organisations was invited to meet European Environment Commissioner Janez Potočnik. During the meeting the Platform reiterated its call on Europe to stop the unjust practice of dumping toxic ships on the poorest communities of South Asia [1] and already identified important areas in the upcoming proposal that will need to be strengthened.
Since 2006, the NGO Shipbreaking Platform has actively called on European policy makers to find solutions that will improve enforcement of the current European Waste Shipment Regulation – a law that forbids the export of toxic ships to developing contries. Last week during a ship recycling conference in Singapore, the European Commission announced its intention to propose a new regulation on ship recycling, which will transpose the International Maritime Organisation’s Hong Kong Convention on Safe and Environmentally Sound Ship Recycling – and, at the same time, remove ships from the current European Waste Shipment Regulation. Today, Commissioner Potočnik informed the Platform that the new regulation will seek to regulate only ships sailing under a European flag. The Platform is concerned that the proposal, which will be published tomorrow, will do little to reverse the current trend of unsafe beach breaking with no care for waste management in developing countries.
“With no economic incentive to change current shipping and shipbreaking practices, and faced with the reality that there are few, and probably will be even less, European flagged ships at end-of-life, the Commission’s proposal effectively rids Europe of its responsibility – and opportunity – to provide a sustainable solution to stop toxic ships from poisoning workers and the environment in some of the world’s most vulnerable countries,” said Ingvild Jenssen, Director of the NGO Shipbreaking Platform.
The Platform believes that the Hong Kong Convention provides for weak grounds on which to settle a solid regulatory framework and therefore applauds the introduction of stricker requirements at the European level both with regards to clean ship building and environmentally sound ship dismantling. But, while the Commission claims that the upcoming European proposal goes beyond the Hong Kong Convention in taking a clear stance against the beach breaking method [2]and only allowing EU flagged vessels to be sold to recycling facilities approved by the EU, in reality these requirements will only affect a small number of ships. Whereas 40 percent of the world fleet is owned by European-based companies, only a small percentage is sailing under a European flag at end-of-life [3]. In 2011 almost two-thirds of all European-owned vessels sold for breaking in South Asia were registered under non-European flags. The majority of these flags, such as St Kitts and Nevis; the Bahamas; Comoros; and St Vincent and Grenadines, are well-known for sustaining substandard practices,their lack of transparency and weak enforcement of international maritime legislation.
The Platform and international trade union organisations have repeatedly stated that the flag state system – and its so-called flags of convenience (FOC) – provides for legal loopholes and cheap disposal routes for the dumping of hazardous wastes. To counter concerns with lack of enforcement only relying on flag state implementation, proposals to introduce economic mechanisms such as port taxes or insurance schemes were initially supported by Commission expert reports [4]. In today’s meeting with the NGOs the Commission was unable to justify why these proposals have not been included in the final regulatory proposal.
In the coming weeks, the Platform will produce a deeper analysis of the Commission proposal and will continue its advocacy work during the co-decision procedure in the European Council and the European Parliament.
Contact:
Ingvild Jenssen
Director
NGO Shipbreaking Platform
+32 (0) 485 190 920
Notes:
[1] 80 percent of the global end-of-life ships are broken in Bangladesh, Pakistan and India on tidal beaches whose soft sands cannot support crucial safety measures such as heavy lifting or emergency response equipment and which allow pollution to seep directly into the delicate coastal zone environment. No country in the developed world allows ships to be broken on their beaches. While shipbreaking can be done in a safe and clean way with proper technologies and infrastructure, and enforced regulations, most ship-owners choose to sell their ships for significantly greater profit to substandard yards operating in countries without adequate resources to provide safeguards and infrastructure to manage the dangerous business. On the South Asian shipbreaking beaches, vulnerable migrant workers, many of them children, break apart massive and toxic ships by hand, often without shoes, gloves, hard hats or masks to protect their lungs from asbestos, and poison fumes. The International Labour Organization (ILO) considers shipbreaking on beaches to be among the world’s most dangerous jobs.
[2]For more information on the four fatal flaws of the beaching method, see www.offthebeach.org
[3] Using data from shipping database IHS Fairplay DG Environment calculated that in 2009, 1.299 ships were sent for dismantling, out of which 349 (or 27 percent) were owned by European companies. The majority of these 27 percent were however registered under non- European flags: 252 out of 349 (72 percent). The proposed EU Regulation on ship recycling would only concern the remaining 28 percent of EU-flagged and EU-owned ships, adding also a smaller number of ships owned by non-European companies, but registered under an EU flag. Out of the 1.299 ships sent for breaking in 2009, 197 ships were sailing under a European flag (about 15 percent). It must also be taken into account that many of these vessels were dismantled under already acceptable conditions in the OECD.
[4] See Milieu/COWI for DG Environment ” Study in relation to options for new initiatives regarding dismantling of ships ” (October 2009) – Ship Dismantling Fund:
Source: NGO Shipbreaking Platform. 22 March 2012

23 March 2012

Shiptrade Servicves S.A. Weekly Demolition Report for WEEK 12 of 2012:

19th March – to 23rd March 2012 

Bangladesh  continued to have the same problems as in the previous week, however there seems to be a lively interest from a few interested buyers. 

India saw a number of deals being concluded during the previous week with reefers  and containers making an exciting entry and with levels showing some stability. 

Pakistan absorbed some of the tonnages going for India, traditionally of large sizes. 

Chinese market has been seen a increasing flow of tonnage and some buyers have started being selective both in vessels and levels indicated.

Source: Hellenic Shipping News. (Sourced from Shiptrade Servicves S.A.). 23 March 2012
http://hiweb.blob.core.windows.net/hellenicshippingnewsbody/pdf/Shiptrade%20Services%20SA%20+%20Intermodal/Week%2012.pdf

21 March 2012

GMS report on shipbreaking industry for WEEK 11 of 2012:

Indian sub continent buyers had been looking towards the results of the Indian budget this week with interest, fearing any great increase in import taxes could result in further falls in ship prices. The reality is that the budget passed without any overly dramatic tax increases (other titan an already anticipated 2% increase in excise duty), the results of which were a continuation of the status quo on current levels across the Indian sub cont.

Very few cash buyers were taking chances on Bangladesh, with prices differing by only some USD 25 to USD 30/LT LDT from China and waiting times double in Chittagong, there was little surprise in that, which likely contributed to the continued shoddy performance of the local market.

The number of vessels, although dwindling somewhat in recent weeks from the peak of January to February 2012 remained strong with a number of owners keen to sell given the right numbers.

The problem is that owner's expectations are currently miles away from a market under pressure from the sheer volume of vessels available. The recently dithered pricing might not reversr any time soon, especially with end buyers very much dictating the direction of prices, given the still abundant volume of tonnage.

Local fundamentals across the board actually remain relatively healthy with the recent currency crisis in the sub continent seemingly averted and steel prices continuing to impress. Whilst capacity should hold to absorb the market tonnage, the number of open and aggressive buyers with available finance is under question.

Indeed, with almost 60 vessels arriving into Alang alone in February 2012 and Bangladesh struggling to take delivery of under half that number of vessels since reopening at the start of the year, the pressure is beginning to fall very squarely on one or two markets to keep up the pace and perform as the tidal wave of tonnage persists.

For week 11 of 2012, GMS demo rankings for the week are as below:

CountryMarket SentimentGEN CARGO PricesTANKER Prices
IndiaWeakUSD460/lt ldtUSD 490/lt ldt
PakistanWeakUSD460/lt ldtUSD 490/lt ldt
BangladeshWeakUSD450/lt ldtUSD 480/lt ldt
ChinaBullishUSD415/lt ldtUSD 425/lt ldt

Source: Steel Guru. (Sourced from GMS Weekly). 21 March 2012
http://www.steelguru.com/international_news/GMS_report_on_ship_breaking_industry_for_WEEK_11_2012/255611.html