GMS weekly report on Bangladesh ship breaking industry for WEEK 9 of 2011:

As stated above in the market commentary, the Bangladeshi High Court finally announced that it would permit the import of vessels for recycling. However, Bangladeshi recyclers and ship owners must ensure that several pre-conditions are met/complied with, before a vessel can be beached locally.

Some of the key requirements known at this time include:

1. Toxic gases and hazardous materials from vessels would need to be cleaned prior cutting activities commence.

2. Gas Free for Hot Works certification would now be required at Bangladesh for Wet Tonnage.

3. No vessel that arrives locally for recycling would be permitted to anchor unless the vessel arrives in "Gas Free" safe for "Hot Works" condition.

4. No ballast water can be discharged at outer anchorage or at local yards.

5. Laborers / workers under the age of 18 would not be permitted to work on the yards

6. Laborers permitted to work on local yards would need to be trained at an institute supervised by the Bangladesh Marine Academy.

While the full text of the court order was unavailable at the time of writing, the above provides a brief insight to what local recyclers and ship owners should expect when delivering vessels into Chittagong, in the near future.

The big question on everyone's mind is, what effect will the opening of the market titans have on the industry overall? In the immediate future, due to the local shiprecycling industry being starved of tonnage; demand, prices and a healthy diversion of market tonnage towards the shores of Chittagong is anticipated.

Additionally, many' Cash Buyers who have acquired tonnage keeping the Bangladesh option in mind, would offload their vessels within the upcoming week(s), the local anchorage is expected to become busy rather quickly. Chittagong is expected to return to the charts of most ship owners and remain at the forefront of a healthy majority of market negotiations in the coming weeks.

Source: SteelGuru (Sourced from GMS Weekly). Wednesday, 9 March 2011

http://www.steelguru.com/indian_news/GMS_weekly_report_on_Bangladesh_ship_breaking_industry_for_WEEK_9/194871.html