12 August 2014

GMS weekly report on Indian ship breaking industry for WEEK 32 of 2014:

The extreme volatility, evident for so much of last year in the Indian markets, has struck once again. Local steel plate prices and the currency, as evidenced by the graphs below since the start of the year, have experienced extreme turmoil of late.

This has seen at least USD 25 per LT LDT wiped off the prices in the past few weeks alone, with many end buyers simply refusing to offer until markets settle and some stability on prices can be seen again. One market sale did register with the Bogazzi controlled Roro SKODSBORG (6,803 LDT) fetching an impressive USD 500 per LT LDT.

Source: steel guru. 12 August 2014

Hapag-Lloyd alters scrapping policy, citing ethics:

Container ships

German shipping company Hapag-Lloyd has changed its policy on the sale of old vessels. Its "old ladies" will now be sent to specialized docks for scrapping instead of trading them in the global marketplace.

Hapag-Lloyd said Monday it would no longer sell phased-out cargo vessels on global markets where the company once enjoyed high returns on older freighters still in good condition.

The decision goes against an emerging trend in the industry of sending old ships to scrapping docks in India, Bangladesh or Pakistan in order to make a quick buck on the price of scrap metal.

But the company told Germany's dpa news agency that it had ethical qualms about laborers in those countries facing adverse working conditions.

Many are not at all protected against the tons of poisonous materials, such as asbestos and the chemical PCB, commonly found in large ships.

Applause from campaigners
One organization that has led the campaign against dangerous pollution and unsafe conditions that result from end-of-life ships with toxic-laden structures being freely traded in the marketplace is the Shipbreaking Platform, a non-governmental coalition of environmental, human rights and labor representatives.

"We explicitly welcome Hapag-Lloyd's move and hope that other ship owners will follow suit," the platform's chief, Patrizia Heidegger, said in a statement.
Last year alone, 655 big vessels were scrapped in India, Bangladesh and Pakistan, where a single ton of scrap metal could fetch up to $470 (351 euros).

Rampant child labor in the docks and frequent lethal work accidents, however, have blighted the business.

Source: DW. 11 August 2014

11 August 2014

Report paints grim picture of Alang shipbreaking industry safety record:

Report paints grim picture of Alang shipbreaking industry safety record

In what is a major setback for the shipbreaking industry in India, a study carried out by the Mumbai-based Tata Institute of Social Sciences (TISS) on Alang yards showed that working conditions had hardly improved over the years since its inception 31 years ago.

The study, commissioned by the National Human Rights Commission (NHRC), is based on intensive fieldwork at the world’s largest shipbreaking yard Alang and Sosiya over 13 months from 21 April last year to 30 May 2014. The report has been submitted in June, and is expected to be published in a few days.

The findings of the study are bound to come as a shot in the arm for environmentalists Greenpeace, who have been crying themselves hoarse over the years about what they call inhuman working conditions at Alang and scant respect for the health of the workers.

The green campaigners have consistently objected to the lack of adequate safety equipment, as also to the heavy presence of harmful substances like asbestos and PCBs (polychlorinated biphenyls) in demolition vessels that endanger the lives and heath of the workers, and render them susceptible to cancer and respiratory ailments.

A senior member of the TISS team, which carried out the studies at Alang said that there had been 470 deaths at the shipbreaking yards in Alang in the period 1983 to 2013.

“This is the official figure, accepted by the shipbreakers’ association, but the actual figure could be much higher,” he said. “The training provided to new workers is inadequate; it is just for two to three days.

“The labourers are mostly migrant workers from the poor regions of Bihar, Uttar Pradesh, Jharkhand and Odisha. They are ignorant about the rules and regulations; they have no idea of the labour laws. Nor are they aware of the compensation due to them.”

The TISS team member alleged that proper medical help was never available, and that doctors who visited the clinics were not regular.

“They do not have an orthopaedic or skin specialist,” he said. “The only medical facility available is a nine-bed hospital run by the Red Cross Society and a small clinic run by a private doctor. For emergencies, the injured have to be taken to Bhavnagar, which is almost 50 km away.”

Although the Ship Recycling Association of India (SRIA) and Gujarat Maritime Board (GMB) which overlooks and monitors the shipbreaking activity at the yards, claim that health camps were being held for the workers, the TISS member said that it was merely a symbolic activity.

Source: sea trade global. 11 August 2014

Visiting the Deadly Ship Breaking Yards of Bangladesh:


Thirty-four-year-old Massood was skinny, but muscular. His hands and arms were dotted with deep, jagged scars; the so-called "Chittagong tattoos." From the look in his eyes, you could tell he was physically exhausted. I could see his bones shine through the linen shirt loosely dangling around his body. He spends his days dismantling ships on the beaches of Chittagong, the commercial heart of Bangladesh. He starts work when the sun rises and spends the next 12, or sometimes 14, hours a day laboring while being intimidated by an angry boss. The work is tough, the heat burns, and there is no shade in sight.

Massood mets us on a square in the center of Chittagong after the sun had set, marking the end of a day’s work. It was rush hour and drivers of tuktuks, rickshaws and buses permanently sound their horns. The noise was so deafening we could hardly hear Massood talk, and he struggles to raise his voice.

He's been working in the yards for 15 years. When he was 19, a so called "shipyard recruiter" came to collect him in the poor north of Bangladesh. His family’s land had just been flooded by the monsoon rains, and he was doomed to either let him and his family starve to death or join this man who promised him a job in the bustling, prosperous Chittagong. Massood had no other choice than to go with the man. In return for Massood, the recruiter gave his family a few ten dollar notes.

Ever since, Massood has been trapped on one of the largest shipbreaking yards in the world. He breaks down the world’s biggest rusty, old supertankers, cargo ships, and cruises that have been made redundant for scrap recycling. But rather than being dismantled in an environmentally friendly way, they’re dumped on an eight-mile stretch of the coast of Chittagong, where labor and environmental laws are not taken too strictly and cheap labor is abundant. Every day, more than 30,000 workers are risking their lives for little more than $2.00 a day.

Although the yards claim all the necessary equipment is in place to provide workers with the protection they need, the workers say they don’t get any safety gear. They scrap the ships with their bare hands while holding acetylene torches.


Shipbreaking Platform, an NGO which advocates for laborers' rights, has called the work "modern day slavery," and estimates about 20 percent of the workers are under 15.

An estimated 150 to 200 ships get stranded on Chittagong’s coast annually. According to official figures, 20 workers died in the yards in 2013, but the actual death toll is estimated to be much higher, as most workers have never been officially registered. Incidents are by and large not reported by the shipyard’s managers, who prefer to turn their backs on the accidents. Young Power in Social Action (YPSA), a local watchdog group, estimates at least one worker dies each week. Shipbreaking Platform reported that four laborers were killed and three were seriously injured by a gas cylinder explosion in April of this year.

These numbers, however, do not take into account all the workers that succumb to the toxic or carcinogenic substances that get released when the ships are broken down; substances like asbestos, lead, and PCBs. Lung cancer is common, and the average life span of the workers is just 40.

“Every day I go to work thinking I might die,” Massood said. His dad, who joined Massood in the yards late in his life, died in an explosion that Massood witnessed. He has also seen several of his colleagues fall victim to explosions, caused by ruptures in gas cylinders. Steel plates sometimes falls and crush people to death.

“It’s a knockout game.” Massood said. He's gotten used to the fear and accidents in the yards.

Massood is permanently surrounded by the smell of asbestos. His food, which mostly consists of vegetables—he cannot remember when he last ate meat—tastes like asbestos. His clothes smell like it, as does his house, which is a bamboo hut in the shantytowns behind the yards.

Despite widespread international criticism of the working conditions in the yards, the industry is one of the lifelines of the Bangladesh economy. As you drive towards the yards in a three-wheeled tuktuk with an air pollution facemask on, the business the shipbreaking generates is everywhere. Little shops sell stacks of cylinders, pipes or turbines, while others have life jackets, buoys, and ships’ ropes on display.

The industry has an annual turnover of $1.5 billion and employs a total of about 200,000 people in Bangladesh. This scrapping is the country’s main source of steel and reduces the need to import the material. The Bangladesh government collects an estimated $130 million in revenue per year from the industry. And as the country’s economy continues to boom—Goldman Sachs has identified the Bangladesh economy as one of "the next eleven"—the demand for steel will grow and the number of ships in the Chittagong yards will continue to increase as well. YPSA's Muhammed Ali Shahin said he expects the industry to become more aggressive and competitive in the coming years. He also expects it to cause more pollution.

Bangladesh pays no attention to international laws on trans-boundary movement of hazardous wastes. In 2009, the High Court of Bangladesh said shipbreaking should be strictly regulated and could only take place in properly structured areas, such as docks, rather than on beaches. But the government does not enforce its own laws or listen to the orders of the High Court, according to the Bangladesh Environmental Lawyers Association (BELA)—it prioritizes profit instead.

Last October, rules were implemented by the European Parliament banning the breaking of shipscarrying an EU flag on beaches where working conditions are poor, like those in Asia. In practice, these rules don’t mean much—two thirds of ships dismantled on Asian beaches do not carry the European flag. Ship owners replace European flags by ones of a non-EU country, like Trinidad, Liberia, or Panama, allowing the ships to ignore EU rules.

In 2013, a total of 1,213 large commercial ships were dismantled globally. More than half of these ships were discarded on beaches in India, Bangladesh, and Pakistan, where labor and environmental laws are hardly looked after. These 1,213 ships account for 71 percent of the tonnage being dismantled in the world, according to Shipbreaking Platform.

In Turkey and China, ships are dismantled in a more environmentally friendly way. It is strictly monitored, so that as little toxic material as possible leaks into the sea and labor laws are followed more often. This means less money can be made from the scrapping, making Turkey and China less popular destinations for shipbreakers.

When getting in touch with Jafar Alam, former chairman of the Bangladesh Ship Breakers Association, to get his side of the story, he abruptly hung up the phone. “I do not want to discuss this topic,” he said.

Due to increased international criticism over the years, a curtain has fallen over the industry. It once was a popular tourist attraction, but now visitors are shunned. The only way to get a sense of what the yards look like is by taking the boat of a local fisherman and touring the scene from the seaside while disguised with a head scarf. “They cannot steal the sea from us,” the fisherman said. The closest we got to the yards was passing a ship that had drifted from the beach. Workers waved enthusiastically when they spotted a foreigner in a motorboat, until an angry man, presumably their boss, ordered the men to get back to work.

The life of the workers is tough and often unjust. Few manage to escape. Most workers don’t have a choice and have never experienced another life. They’re happy they have a job which means they don’t starve to death and are able to feed their wives and kids. Massood wishes he could escape, but deep down he knows that it's a false hope. The most he can wish for is that his wife and kids don’t lose him through an explosion.

Source: vice news. By Liza Jansen. 9 August 2014
https://news.vice.com/article/visiting-the-deadly-ship-breaking-yards-of-bangladesh

08 August 2014

USS Constellation heading to Port of Brownsville:

The decommissioned aircraft carrier USS Constellation is headed for Brownsville in the morning where it will be scrapped for its metal.

The 62,000-ton carrier will be towed from the Puget Sound Naval Shipyard in Bremerton, Washington and travel more than 16,000 miles around South America before arriving at the Port of Brownsville sometime in December.

Foss Maritime says its tugboat Corbin Foss will tow the ship. The Kitsap Sun is reporting the departure is scheduled for 5 p.m. Friday, which is high tide.

Construction began on the Constellation, the second of the Kitty Hawk-class of carriers, in 1957 at New York Naval Shipyard in Brooklyn. It was commissioned in October 1961. The vessel was decommissioned in August 2003 at the Naval Air Station North Island in San Diego, then towed to the inactive ship facility at Bremerton, Wash.

The Navy is paying International Shipbreakers $3 million to take apart the Constellation. Robert Berry, vice president of the company, said that’s because the towing distance is much longer — all the way down around the Horn of South America and up the other side — compared to other carriers being scrapped at the port.

The Constellation job will take roughly two years to complete, he said, while declining to estimate how much money the company expects to make from the salvaged metal. The steel salvaged from the ship may go to mills in Texas, Mexico or elsewhere around the world, depending on demand, he said.

Source: Brownsville herald. 7 August 2014
http://www.brownsvilleherald.com/news/local/article_6a9e49e0-1e4b-11e4-ad46-001a4bcf6878.html