01 February 2015

More than 1,000 scrapped:

More than 1,000 ships were scrapped worldwide during 2014, according to data released from NGO Shipbreaking Platform.

Out of a total 1,026 vessels, 641 were sold to breakers’ yards in India, Pakistan and Bangladesh.

German shipowner Ernst Komrowski topped the list of companies that sent their ships to the South Asian beaches, Shipbreaking Platform said.

Hanjin Shipping came second, with Switzerland-based Mediterranean Shipping Company (MSC) and Brazil’s Petrobras following.

Greek owners sold 70 vessels (76% of all Greece-controlled vessels binned) to South Asian breakers, while Chinese companies sold only 39% of their old tonnage into the region.

The Platform reported 23 deaths and 66 severe injuries on the demolition beaches.

It added 15 ships changed their flag to non-European Union states just weeks before reaching South Asia.

Patrizia Heidegger, executive director of Shipbreaking Platform, said: “It is time for the global leaders in shipping to commit clean and safe ship recycling.

“Instead of selling to intermediaries and losing leverage of their vessel, shipowners can talk to ship recycling experts and negotiate directly with modern ship recycling facilities.

“Teekay and Hapag-Lloyd’s decision last year to adopt responsible ship recycling policies shows that shipowners can make alternative choices.”

Source: tradewinds news. 26 January 2014

Shipbreaking rates continue to sink in New Year:

Have the ship demolition markets bottomed out? As with stock and commodity markets, it is very hard to predict the highs to which the shipbreaking market will rise, and the lows to which it will fall.

However, the fact that offers for dry cargo vessels have dropped below the $400 per ldt mark – the lowest they have been for two years – should buttress the feeling that rates have hit the trough, and that they will only improve from this point.

“There was talk of one or two units from existing cash buyer inventories being committed at such lower levels into Bangladesh,” said Dubai-based cash buyer GMS.

“However, there was some positive news to finally cheer onlookers in both India and Pakistan, with the Indian rupee gaining some encouraging ground (by as much as one percentage point) and talk in Pakistan of a 15% duty set to be imposed on incoming steel from abroad.”

GMS felt that the impact of the duty in Pakistan would have positive reverberations around the sub-continent and could spur governments in India and Bangladesh into action as well. “The feeling is that markets may have bottomed out, but this has been said several times in the previous months already, only to see prices fall lower still,” the cash buyer remarked.

All the ship recycling markets on the Indian subcontinent showed a bearish undertone, with bids in India being the best at $425 per ldt for tankers and $400 for dry bulk vessels. Rates were $5 per ldt lower than the Indian levels in both sectors in Bangladesh, while Pakistani bids were a further $5 per ldt adrift from those in Chittagong.

The only demo market where there was optimism was Turkey, where the main fundamentals of pricing seemed to be relatively stable, while several buyers appeared keen to purchase quality units.

Cash buyers were beginning to consider Turkey as a genuine alternative to the Indian subcontinent, willing as they were to compete at prices well above existing market levels. Steel prices had so far not had any significant fluctuations during the first half of January 2015.

There were just a couple of deals struck in the first fortnight of the New Year – both of dry bulk vessels to India, sold with the inducement of a good quantum of bunkers on board.

The 8,085 ldt handy bulker ABM Leader fetched a reasonable $425 per ldt, with 125 tonnes of bunkers thrown in, while the 9,438 ldt panamax bulk carrier The Benefactor was committed for an even more impressive $435 per ldt, with 340 tonnes of bunkers as part of the package deal.
Source: Seatrade Global


Ranger to be scrapped despite interest in saving carrier

A California group wants the Navy to reverse course on the Ranger, a Newport News-built aircraft carrier that proved itself in battle, starred in Hollywood and is now destined for the scrap yard.

Top Gun Super Carrier of Long Beach Inc. has secured $14 million in pledges and contacted members of Congress to try and save the ship, said project manager Michael B. Shanahan. Its campaign has spread to social media and an online petition at change.org.

A few years ago, a previous group tried to raise money to save the ship but fell well short of its goal. Shanahan said his group has major corporate backing and is working on the logistical hurdles of parking the ship in Long Beach, California.

"We're for real," he said recently in a phone interview from California.

But so is the dismantling contract between the Navy and International Shipbreaking of Brownsville, Texas.

Under terms of a deal announced in December, the Navy will pay the company exactly 1 cent to tow the ship from Bremerton, Washington, around South America. The trip to Texas is expected to last 4-5 months.

As the group's name suggests, Ranger appeared in the hit film "Top Gun" starring Tom Cruise. It also had a cameo in "Star Trek IV: The Voyage Home," where it served as a stand-in for the USS Enterprise — the carrier, not the starship.

More to the point, Ranger proved its mettle in combat, earning 13 battle stars for service in Vietnam. In January 1991, it was among the flotilla that launched air strikes in response to Iraq's invasion of Kuwait.

The third Forrestal-class carrier to be built, Ranger was decommissioned in 1993. It was the only Forrestal-class ship to spend its entire career in the Pacific.

After decommissioning, it was kept for potential future reactivation until stricken from the Naval Vessel Register in 2004 and redesignated for donation. For the next eight years, the Navy made the ship available, said Chris Johnson, a spokesman for Naval Sea Systems Command.

One group, the USS Ranger Foundation, expressed interest.

"Unfortunately, that organization was only able to raise $105,000 of their estimated $32 million in startup costs," Johnson said in an email to the Daily Press. "Because we're not able to keep ships in storage indefinitely, the Navy removed the ship from donation hold in 2012 and awarded the scrapping contract in December 2014.

"We are not entertaining any additional offers," he said, "and we have no plan to return the ship to donation hold. We expect the ship will be removed by the scrapping contractor in February."

Shanahan's group has offered to donate money so the Navy can keep the carrier in Bremerton while plans are finalized. Johnson said the Navy can't accept private money for an inherently military purpose.

"It is not accurate when the organization says they have funds available to keep the ship in storage," Johnson said.

Johnson also pointed out that putting the Ranger in Long Beach would compete with the battleship Iowa museum 6 miles away in San Pedro and the aircraft carrier Midway museum 100 miles away in San Diego.

Shanahan says his group envisions the ship as a self-sustaining commercial attraction.

The Navy preferred to see the ship converted into a memorial or museum, which is why it was available for eight years, Johnson said. But when the previous effort fell through, the Navy decided it was time to move on. It costs taxpayers $100,000 to $200,000 per year to store the aircraft carrier, including security, fire/flooding protection and periodic exterior maintenance to keep paint from falling into the water.

"Unfortunately, we are not able to keep ships in storage forever," he said, "and so we had no choice but to move forward with this contract."

Source: Hampton roads. 25 January 2015

Fewer ships scrapped on Asia’s beaches

2014 saw great improvement, but still five Norwegian shipowners send ships for scrapping on Indian beaches.

Bellona has worked for years to stop Norwegian ship owners from conducting so-called “beaching”, that is sending ships to irresponsible scrapping on beaches in Bangladesh, Pakistan and India. New figures for 2014 show that there has been progress. 21 Norwegian ships were scrapped on Asian beaches in 2013 compared to only six last year. Instead of unhealthy and environmentally harmful manual scrapping on beaches, Norwegian ship owners are now selecting shipyards in China, Turkey and Denmark. Nevertheless five Norwegian companies still beached ships in Alang in India in 2014:

Norwegian Car Carriers ASA (to skip)

I.M. Skaugen AS

Continental Ship Management AS

Salhus Shipping AS

Stolt-Nielsens Rederi AS

Norwegian Shipowners’ Association should be clearer

NSA has dissuaded its members from scrapping ships in Bangladesh. Bellona Adviser Sigurd Enge sees no reason why they should not extend this to also apply to India and Pakistan.

– “Beaching” of ships is indefensible both for health and the environmental reasons. The working conditions sm and environmental damage is obvious and there is currently no difference to this job in India than in Bangladesh, says Enge.

He thinks it is a pity that the NSA recommendations aren’e clearer.

– We would like to see the NSA set clearer guidelines here. Instead we see individual ship owners taking responsibility to avoid sending their ships for beach scrapping, said Enge.

Horrendous conditions

A new Indian study of conditions at scrapping companies in Alang show that around 470 workers have died in accidents at this area’s shipbreaking sites since 1984. During the same period there were a reported 400 fires.

Last year alone 23 workers died on beaches in India, Pakistan and Bangladesh. 66 were seriously injured after falling from great heights, explosions and fires. Many workers have also been crushed under falling steel plates.

The 35,000 un-unionized workers live in shacks on-site, and most lack water, electricity, toilets, drainage and sanitary facilities. Children do not have access to education. The report says that the employer has set up 12 showers and six toilets that 35,000 people will share. Neither is maintained.

Moreover, the ships contain toxic waste such as asbestos, heavy metals, PCBs, oil residues and organic waste. It’s impossible to store or remove this waste safely on a beach where the tide is constantly washing in.

The Norwegian shipowners Knutsen NYK Tankers, Tschudi Shipping Company, Teekay Corporation and Siem Industries Incorporated has recently ended beaching practices. They are now sending ships to shipyards in Turkey and China.

Here’s where ships are broken up:

India 309

Bangladesh 222

China 163

Turkey 157

Pakistan 110

Denmark 19

Unknown 12

Belgium 6

Indonesia 5

USA 3

The picture in the article is taken from NGO Ship Breaking Platform – of which Bellona is a member.

Read the press release of the Ship Breaking Platform here

For more information, contact Bellona’s expert on the topic:

Sigurd Enge
sigurd@bellona.no 
+47 970 87 533

Source: Bellona. 26 January 2015

China Shipping Development expects $48m profit in 2014

China Shipping Development expects $48m profit in 2014

China Shipping Development Corp (CSDC) will return to profit for the financial year 2014 against the backdrop of higher tanker shipping rates and cost control.

The tanker and dry bulk shipowner said it is expecting to post a profit of approximately RMB300m ($48m) in 2014, as against a loss of RMB2.3bn in 2013.

CSDC added that it benefited from ship scrapping state subsidy worth RMB456m in the second half of last year.

Source: seatrade global. 30 January 2015