01 February 2015

GMS weekly report on India ship breaking industry for WEEK 4th 2015

By the end of the week, there were signs that sentiment had started to turn in India with the Indian Rupee trading at a healthy INR 61.4 against the US Dollar and with steel prices clawing back some of the ground lost over the previous few weeks.

Much of the tonnage being offered in the market was not really of interest to Indian buyers their preferred containers and smaller LDT / beam units were not readily available. The majority of the capesize bulkers seem destined for either Chittagong or Gadani shores, a sector that is providing the steadiest supply at present.

Capacity remains excellent locally with many end users having (luckily) abstained from filling their plots whilst prices tumbled by around USD 100/LDT (a 20% correction!).

As a result,there were few market sales to speak of. However, if sentiment and demand pick up as expected, then that will change in the coming weeks.

Most end buyers prefer smaller LDT tonnage due to the constant volatility in the Indian market and the fact that they can cut smaller units in quicker time in case the market is falling, but if fundamentals and prices remain at workable levels then this mentality may change in order to secure available tonnage.

Source: steel guru. 29 Jan 2015

GMS weekly report on Bangladesh ship breaking industry for WEEK 3rd 2015

At least 7 - 8 capesize bulkers have been offered into the Bangladeshi market this week, all with varying degrees of interest.

Levels have indeed declined over the week as those hot end users have booked themselves with units – both on a private basis and from existing cash buyer inventories.

Whilst capacity remains good, owners will probably have to accept lower realities going into the next few weeks as oversupply forces numbers down.

One decent LDT MPP/roro type, the Russian controlled ATLANTIC ELAND (10,286 LDT) was committed for a firm USD 435/LT LDT in the one market sale of the week.

MARKET SALES REPORTED –

VESSEL NAME
TYPE
LDT
REPORTED PRICE
ATLANTIC ELAND
MPP / RORO
10,286
USD 435/LT LDT

Source: steel guru. 20 Jan 2015

Platform News - Platform welcomes new Japanese partner organisation

Brussels, 29 January 2015 – In November last year Platform founder and policy advisor Ingvild Jenssen visited Yamaguchi Prefecture based community network Ikki-Ikki Asia Japan. The volunteer-based network, first established 25 years ago, works on a multitude of community-building, environmental and solidarity projects. For more than a decade Ikki-Ikki has had a partnership with Platform member organisation YPSA in Bangladesh. It was during one of Ikki-Ikki’s annual visits to Chittagong that Chief Executive Mori first learned about the human rights abuses and environmental pollution related to shipbreaking activities in Bangladesh. Ikki-Ikki has since then translated the Platform reports "The Human Cost of Breaking Ships"[1] and "Child Breaking Yards"[2] to Japanese and raised awareness of the issue in Japan.

“Japan is a major ship owning country and has a responsibility to ensure that its end-of-life fleet is dismantled under conditions that can ensure safe working conditions without devastation of sensitive coastal environments. Raised awareness in Japan of the disastrous conditions at the South Asian shipbreaking beaches is crucial and we are therefore glad to welcome Ikki-Ikki onboard”, said Ingvild Jenssen, “their work is encouraging and a true inspiration.”

Whilst Japanese ship owners have traditionally opted for recycling at modern ship recycling facilities in China, in 2014 most Japanese-owned vessels hit the beaches of South Asia for breaking. Only the Mitsui O.S.K. Lines Limited (MOL)-owned ship "Global Spirit" was dismantled under conditions that meet international standards in Turkey after the ship was arrested in the port of Antwerp for an attempt to illegally send the ship for breaking in India.

Meanwhile, the Japanese International Cooperation Agency (JICA) has recently expressed their willingness to support the upgrading of Indian ship recycling yards with a USD 180 million loan. The upgrading would include the building of a dry-dock to remove hazardous wastes from ships; expanding waste treatment and disposal capacity at Alang; the building of accommodation for 1.000 workers; as well as a school.

“We welcome the Japanese efforts to improve the conditions in Alang. A dry-dock will address concerns related to pollution in the intertidal zone. One dry-dock will however only be able to accommodate a minor fraction of the Japanese - and world - fleet. Japan needs also to look beyond South Asia and draw experiences from, as well as synergies with, its own shipbuilding industry,” said Ingvild Jenssen.

Ikki-Ikki Asia Japan thus joins the list of partner organisations that support the Platform’s work, which includes the ECCJ, EEB, EJOLT, Human Rights at Sea, Mediterranean SOS Network and Surfrider Foundation.

NOTES
[1] You can access the Japanese version of "The Human Cost of Breaking Ships" here
[2] You can access the Japanese version of "Child Breaking Yards" here


Source: NGO shipbreaking platform

IMO at ship recycling workshop

IMO’s Simone Leyers is in Brussels, Belgium to provide an update on implementation of IMO’s Hong Kong Ship Recycling Convention to participants at the European Community Shipowners’ Associations (ECSA) Technical Workshop on Ship Recycling (27 January), which is being hosted by ECSA with participation from the EU Commission, EU Member States, Recycling States (India and Bangladesh) and shipowners. Ms Leyers will also provide an update on the IMO NORAD project “Safe and Environmentally Sound Ship Recycling in Bangladesh – Phase I”.

Source: hellenicshipping news. 28 January 2015

German ship owner Ernst Komrowski tops list of worst global dumpers with 14 vessels

BERLIN: German ship owner Ernst Komrowski topped the list of the worst global dumpers with 14 end-of-life vessels sold to the beaches. All of these were formerly part of the Maersk fleet and had been on a long-term charter with the Danish container ship giant, which oppositely to Komrowski has a strict ship recycling policy for its own vessels. Second ranks South Korea’s largest container ship owner Hanjin Shipping with 11 ships.

Being based in a leading ship building country and with a strong environmental profile, Hanjin should also be aware of issues related to safe and clean recycling, still, they chose profit over people and the environment. Third ranks repeat offender Swiss-based Mediterranean Shipping Company (MSC) – the second largest container ship operator in the world whose shipbreaking activities in India have already cost the life of six workers in 2009 when a fire broke out on the MSC Jessica. Despite recurrent public criticism of MSC’s deplorable management of their end-of-life fleet, MSC has not developed a ship recycling policy that can prevent such tragic accidents.

Hanjin and MSC’s bad practice stands in sharp contrast to that of their competitors Maersk and Hapag-Lloyd, two leading containership companies that have committed themselves to the recycling of their end-of-life vessels in modern facilities off the beach. Number four amongst the worst dumpers is Petrobras with six end-of-life vessels sold to South Asia: the Brazilian oil giant is the largest company of the Southern Hemisphere, but in contrast to other major oil and gas companies unwilling to recycle its old tankers properly.
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Source: customs today. 29 January 2015