Record number of containership scrapped in last two years:

MORE containerships have been scrapped in November than in any month in the last two years, according to Alphaliner.

Containerships, aggregating 21,000 TEU, were scrapped in November, the greatest number since November 2009, said the weekly newsletter. Dismantled ships were mostly panamax vessels and as old as 19 years, it said.

"Poor earnings prospects for such panamax ships will likely drive further demolition sales in 2012," Alphaliner said.

Singapore's Neptune Orient Lines and Cosco are among shipping companies that posted losses this year as they contend with lower cargo rates and fuel costs that jumped as much as 43 per cent. Daewoo Shipbuilding & Marine Engineering Co, the world's second-largest shipbuilder, expects its new orders to drop 23 per cent next year, it said on December 25.

A total of 219 ships with a capacity of 546,000 boxes were idle as of December 19, an increase from 526,000 two weeks ago, according to Alphaliner.

Source: SeaNews Turkey. 29 December 2011

http://www.seanews.com.tr/article/TURSHIP/CONTAINER/73798/container-ship-scrapping/

Ship Recycling in the Indian Subcontinent and Beyond: Progress in Leaps and Bounds

The last 3 years have been extremely significant for the shipping industry as a whole, acting as a wake-up call to industry veterans. The start of the market crash and collapse in 2008 with the slow but steady decrease since then has forced many industry players to re-think their strategy and positions across the globe and sectors. Throughout the world shipping companies have closed down or relocated to more friendly jurisdictions and pruned their top staff and management in order to conserve costs and running expenses. The “green dollars” industry slowly turned into the “red dollars” industry.

The current capesize tonnage on order for 2011 is approximately 103.2 million DWT and it is anticipated that in excess of 25 million DWT for scrapping would hit the beaches of India, Bangladesh and Pakistan this year. It has been an extremely challenging time for many, with the serious falls in freight rates and high bunker costs forcing scores of owners to cancel and terminate their charters early.

The veteran shipping banks do not want to finance shipping any further, thereby accelerating the rate of foreclosure leading to forced sale of vessels across High Courts in Singapore, India, Bangladesh and even China.

To put numbers in perspective, capesize rates were USD30,587 / day last year and they have significantly fallen to USD8,296 / day this year. It was joked that charterers could charter hire a super yacht at the same price as a VLCC from South Africa to India, something which has sent alarm bells ringing across the shipping industry.

The Role of a Cash Buyer:

Companies such as Wirana within the ship recycling industry are known as cash buyers since they purchase, from the owners, the vessel, basis 100% cash. In turn, the cash buyer would sell the vessel to a ship recycler in any one of the ship recycling countries. For vessels purchased basis “as is” the cash buyer takes over the vessel at the delivery port and then boards his own crew to sail the vessel. In the meantime, the vessel is re-flagged, given a brand new name and provided with a fresh insurance cover for the voyage to the recycling yards. Therefore Wirana is rightly referred to as an underwriter of recycling market risks. Due to fluctuations in steel prices in an extremely volatile market, the owners/sellers could stand to lose millions of dollars by the time the vessel arrives at delivery port. Irrespective of market conditions principals of Wirana have steadfastly stood by owners and sellers.

Upon delivery of the vessel in the Indian subcontinent, Wirana accepts Letter of Credit (LC) as the mode of payment from the end ship recyclers, something which the original owners maybe unwilling to accept or perhaps may have little experience in negotiating; therefore, owners prefer to work with cash buyers and it is estimated that at least 98% of vessels for recycling are sold via cash buyers. At all times the owners remain completely secure as their final payment from Wirana for the vessel is NOT contingent upon receiving funds from the end ship recyclers, which clearly demonstrates that Wirana act as the cushion between the owners and the end buyers of the vessel.

We therefore provide an important economic and distribution function to the owners as they now deal 15 with one single entity which in turn deals with 300 ship recyclers between India, Pakistan, China (north and south), Turkey and Bangladesh.

Wirana has the in-house resources to continuously monitor the markets thereby placing it in a unique position to accurately and firmly guide owners. This knowledge is country specific and involves the spread across the five major ship recycling markets. Wirana remains fully abreast about of government regulations and is constantly being updated, thereby leading to an increase and maximization of the asset value for the owners.

The Intervention of the Judiciary:

INDIA

Both India and Bangladesh have seen their fair share of litigations involving the ship recycling markets. In India, the arrival of the BLUE LADY (ex-NORWAY) caused a huge uproar due to the alleged onboard quantities of asbestos and other hazardous materials. The matter was dragged right up to the Supreme Court of India which is the apex court body deciding on major issues. The Supreme Court handled the matter for months and then laid down extremely stringent rules and regulations for governance of the ship recycling industry.

The rules and regulations came to be followed by all sectors and industries involved with ship recycling.

Some of the salient features of the Supreme Court order were:

1. Submission of the Ship Recycling Plan (SRP).

2. Details of the vessel, including best possible quantities of onboard wastes.

3. Ship recycling schedules with sequences of work.

4. Operational work procedures.

5. Availability of work handling equipment and PPEs

6. Plan for removing of oil and cleaning of tanks.

7. Hazardous wastes handling and disposal plans.

8. Gas Free for Hot Works certificate issued by the competent authority.

9. Identification and marking of all no breathing spaces.

10. Identification and marking of all places likely to contain hazardous wastes.

11. Confirmation that ballast water has been exchanged on the high sea.

12. Dismantling stage.

13. Waste water downstream stage.

BANGLADESH

The Bangladesh ship recycling industry was hit by the landmark environmental litigation initiated by the Bangladesh Environmental Law Association (BELA) which sought inter alia directions from the Supreme Court of Bangladesh on the safe and environmentally sound recycling of vessels arriving for recycling at Chittagong.

Sensing an immediate concern to set the house in order, the Supreme Court of Bangladesh banned the working of the recycling industry for 10 months in 2011 and directed the Shipping Ministry and Ministry of Environment to frame “Ship Recycling Guidelines” within in 6 months.

Relentless efforts by BELA saw the industry running in all four directions to comply with the Order of the Apex Court which mirrored the Order passed by the Indian Supreme Court. For the very first time, vessels arriving in Bangladesh were required to be gas free for hot works (Naked Flame Rules) as well as opposed to the plain gas free for man entry requirements which are far less stringent and less onerous.

Ship recycling is an important social economic activity which provides direct and indirect employment for over 500,000 people. Looking at the growing economic burden and perhaps the lack of contribution due to closure of millions of dollars in terms of direct and indirect taxes, the Supreme Court allowed the temporary reopening of the industry in May 2011 for a period of three months, further extendable upon the terms and conditions determined by the Court. As we write the Order remained in force until 12 October 2011 and will be suitably reviewed by the courts in order for any future extensions to be granted. Until this time the Ministry of Environment has to present the framed guidelines for the approval stamp of the courts. Once the guidelines have been framed it is hoped that the Industry would rise from the ashes like the Phoenix.

PAKISTAN

Unfortunately, Pakistan has consistently lagged behind the global race on upgrading themselves to the next tier.

The yards there continue to be rudimentary in nature, relying heavily upon human workforce and labor, with little care for industrial rights and consequent violations.

The inherent lack to upgrade perhaps stems from the fewer number of vessels arriving each year for recycling, which is directly proportionate to the price being paid by shiprecyclers. In fact, vessels from the Pakistan National Shipping Corporation (PNSC) have routinely been sold outside of Pakistan and have come down to India and Bangladesh. This speaks for itself.

Recycling Capacities:

INDIA

In India the ship recycling activities are principally carried out at Alang which is situated on the west coast of India in the state of Gujarat. At present, Alang has approximately 175 active and fully licensed and functional yards which are leased by the Government of Gujarat for a period of 10 years to ship recyclers, with the leases being renewed upon their expiry appropriately.

To complement the yards at Alang we have some recycling yards at Jamnagar, a few nautical miles away from Alang but again in the same state of Gujarat. The unique strength of Alang is that they rely upon the beaching tides which vary month to month in order to derive the maximum advantage of the force of the water to push the vessel onto the beach.

Of course, some vessels that are dead and under tow or those of extremely low LDT do not require meeting the beaching tide schedules and can beach at any time during the month. Both Alang and Jamnagar are under the aegis of the Gujarat Maritime Board (GMB) which operates under the directions of the Government of Gujarat.

More than 7,000 vessels have been scrapped at Alang since 1983, generating steel output in excess of 80 million tons. In an average, year Alang recycles about 600 vessels with an annual sales turnover of about of about USD 1.4 billion.

To complement the 2 destinations, a few vessels are also beached at Mumbai at the Darukhana which falls under jurisdiction of the Mumbai Port Trust (MBPT) which functions under the Government of Maharashtra.

However, this port has size restrictions and not all vessels can be recycled here. For example, vessels in excess of 170 meters in length will have to go to Alang or Jamnagar as they will not be allowed at Mumbai.

BANGLADESH

In Bangladesh there are approximately 55 ship recycling yards which are fully functional and meeting the recycling needs of the nation. This industry now comes under the Ministry of Industries as opposed to the Ministry of Shipping and any ship coming inwards for recycling is required to obtain a “No Objection Certificate” in order for the Letter of Credit to be opened from the ship recycler’s bank. Unless this is provided, the bank will not start the various procedures required for the release of the LC, which may then considerably delay the beaching process of the vessel.

In Bangladesh, as well, vessels are beached according to respective beaching tides and vessels need to strictly meet these tides in order to prevent considerable waiting at anchorage, some times up to 14 days, until the next tide.

PAKISTAN

In Pakistan there are approximately 25 ship recycling yards on the coast of Gadani in Baluchistan which are under the Ministry of Revenue but outside the territorial jurisdiction of Karachi. The inwards formalities are little and vessels are beached without any hassles considering that no tides are required to be met. Therefore, any owner looking for quick beaching and swift money in the pocket may perhaps find his solace and answers in Pakistan as opposed to India and Bangladesh.

ISO Certifications:

INDIA

In India there approximately exist more than 20 licensing bodies and the industry is extremely and heavily regulated.

With the stepping in of the Supreme Court the industry realized the urgent need to upgrade to the ISO Club.

So in this very tough and competitive environment the ship recyclers spent their own funds and invested manpower to meet the stringent standards of ISO without any financial or other support from any third party.

Currently, at least 100 yards are certified with ISO 14001/9001 and OHSAS 18001 and at least 50 yards have ISO 30000.

This is remarkable as since 2007 the industry has pushed all buttons to gear itself to the constantly changing challenges in this labor and economic intensive industry.

BANGLADESH

Of the 55 yards at least 25 have ISO 14001/9001 and OHSAS 18001, including ISO 30000, which is remarkable considering the levels of Bangladesh some years ago.

We applaud the initiatives taken by the ship recycling community to raise the bar and improve the health and standard of living of their workers and their surrounding environment. This indeed shows that even in non- subsidized economies and coming from those industries that receive little or no support from the government, a small group of recyclers are making all efforts to make that “big change” that will benefit future generations of the ship recycling industry and those directly and indirectly connected with it.

PAKISTAN

Unfortunately for Pakistan, it has lagged behind even in this race and of the 25 ship recycling yards none of them is even basic ISO-certified. The lack of interest, as explained earlier, stems from a variety of reasons, including the smaller offering of vessels and the potential

terrorism-ridden economy dealing with a highly unstable government and regime. For Pakistan the adoption to ISO standards seems difficult in the foreseeable future. Until adopted and strictly enforced the industry will continue to work using old practices and methods.

By: Shashank Agrawal, Legal Advisor

Wirana Shipping Corporation, SINGAPORE

This article is the first in a two part series by Mr Shashank Agrawal of the Wirana Shipping Corporation. Wirana is the oldest cash buyer and was established in 1983. In 2009 and 2010, Wirana successfully negotiated over 320 vessels with LDT in excess of 3 million and DW T in excess of 12 million and has so far negotiated over 1,700 vessels and delivered a total DW T in excess of 48 million since 1983. They are the FIRST and ONLY cash buyer to feature in the Guinness Book of World Records for the two ULCCs purchased with a combined LDT of 148,691, a record which even today remains unmatched and unbroken.

Wirana has so far successfully negotiated over 300 tankers, 5 ULCCs, 28 VLCCs and in excess of 110 container vessels, with the list continuing to rise and grow every day. On a final note, Wirana will be the principal sponsor of a Ship Recycling Forum in Singapore, March 12/13, 2012, organized by TradeWinds.

Source: NHST Events. December 2011

http://www.nhstevents.com/assets/Events/ship-recycling-forum-2012/documents/Currents-Wirana-ShashankAgrawal-12.2011.pdf

GMS weekly report on PAKISTAN shipbreaking industry for Week 51 of 2011:

Despite the number of units that have recently made their way to Gadani shores and beached, there was still demand from one or two of the larger buyers to get their hands on a cape, Suezmax or aframax tanker.

The levels on show reflected what the Indian and Bangladeshi open buyers have been saying in recent weeks, mid 400s on dry and high 400s/LT LDT on wet, but the fact that enquiries are emerging from Pakistan is the most encouraging aspect.

In what must be a record year for local Gadani buyers, Pakistan has proved on a number of occasions to be a more than capable stand in for the oft volatile and at times exhausted Indian market.

Source: Steel Guru (Sourced from GMS Weekly). 27 December 2011

http://www.steelguru.com/middle_east_news/GMS_weekly_report_on_Pakistan_ship_breaking_industry_for_Week_51/242945.html

GMS weekly report on CHINESE shipbreaking industry for Week 51 of 2011:

China continued their relentless march onwards this week as they once more closed the gap on Indian sub-continent prices a number of private vessels were concluded at level at USD 430/LT LDT and up dry vessels either with full spares or some fuel adding to the strong prices on show.

With the year-end fast approaching and Chinese New Year on the horizon in late January, there are some doubts as to how long this momentum can be maintained with buyers rapidly quelling their appetite and filling their open yard/berth.

For so long in shadow of their Indian sub continent counterparts, the coming year could be a big one for Chinese buyers, with more yards expected to come online and steel prices expected to stay strong. If prices continue their march onwards in the coming weeks we may see China for only the second time this year sit top the demo rankings.

Source: Steel Guru (Sourced from GMS Weekly). 27 December 2011

http://www.steelguru.com/chinese_news/GMS_weekly_report_on_Chinese_ship_breaking_industry_for_WEEK_51/242961.html

GMS weekly report on INDIAN shipbreaking industry for Week 51 of 2011:

With the Indian rupee once again stuck in the mire against the US dollar once again for the week - the Indian Government finally stepped in, in an effort to arrest the slide temporarily and bring a touch of stability to the country (and the ship recycling sector).

The focus on the buying side seemed to switch more firmly to Pakistan where at least end buyers were offering and asking questions on vessels, as opposed to India, where interest appeared to be rapidly waning.

All of this despite the fact that MOL last week sold two more of their double hulled VLCCs (ORION TRADER 1998 Bit 42,137 LDT and OHMINESAN, 1996 Bit, 38,949 LDT) for guaranteed green recycling in WC India for a price of USD 470/LT LDT. This follows the sale of the first double hull VLCC (also MOL controlled) to be scrapped several weeks ago, the ATLANTIC LIBERTY, to the same green yard in Alang.

The one market sale to register for the week concerned the Freedom type bulker MYRA (4,357 LDT) fetching an abnormally high LTSD 465/LT LDT from one pluck}' cash buyer. Two of the sister vessels - FLORA S and MICHALIS K have also been scrapped this year in a move that appeal's to signal the end for this particular stable of imit.

On the other hand, 25,018 LDT Caper M/V GOOD LUCK appeared to have hit troubled waters when the vessel arrived the local market on the low end and has reportedly sailed away - the only evident sign of a possible attempt at a renegotiation that failed to reach an agreement between the two parties.

Source: Steel Guru (Sourced from GMS Weekly). 27 December 2011

http://www.steelguru.com/indian_news/GMS_weekly_report_on_Indian_ship_breaking_industry_for_WEEK_51/242912.html

GMS weekly report on BANGLADESH shipbreaking industry for Week 51 of 2011:

As several tentative end buyers put forward numbers for the purchase of various vessels at anchorage this week, there was a distinct disappointment at their proposals, considering a sector that has been starved of tonnage for more than a couple of months now - especially considering the fact that the local steel place price improving has been gradually as well.

It is understandable that Bangladeshi buyers may be looking to peg their levels to the Indian market - but Chittagong buyers have not suffered the same currency crisis, as their Indian counterparts and the gloomy outlook on numbers seem unreasonable at this moment in time.

Titie, end buyers may be faced with a hefty 5% (approx USD 25/LT LDT) import tax on incoming vessels - but this has yet to be ratified or confirmed by the Government / High Court, who have still to approve and sign the extension that would allow vessels to beach once again.

With that in mind, it was a bold stride from one cash buyer to step forward and take the Bergesen controlled VLCC, BW STADT (41,079 LDT), in a move clearly separated from reality. The vessel was committed at USD 4S0/LT LDT basis 'as is' Labuan with about 700 Tons IFO ROB. Committing units (this could only feasibly be a Chittagong candidate) into a closed market, at levels wide of the mark, even on a delivered basis, has definitely caught many off guard this week.

Source: Steel Guru (Sourced from GMS Weekly). 27 December 2011

http://www.steelguru.com/indian_news/GMS_weekly_report_on_Bangladesh_ship_breaking_industry_for_WEEK_51/242915.html

GMS weekly report on shipbreaking industry for Week 51 of 2011:

Currency woes in the Indian market continued to beset the industry, as this week, the Bangladeshi buyers got wind of recent developments and started to peg their levels accordingly i.e. well below the USD 500/LT LDT.

For an industry that, for the most part, has been on an upward trajectory since the lows of late 2008 or early 2009, it may be that levels of USD 500/LT LDT and up, represented a stretch too far for most end buyers as they struggled to make any money on their deals concluded (let alone breakeven).

Those owners that managed to cash in at USD 500/LT LDT and above might consider themselves extremely lucky, for it looks as though the more moderate 400s are the comfortable reality for most. These are still historically strong numbers (ship recycling is probably one of the only industries to have nearly doubled since the collapse a few years ago), just not the lucrative payday many may have been hoping for, from the highs experienced during the year.

So, as WC India and their price trailing neighbors Pakistan, struggled on, Bangladeshi buyers were not able to make any sense of the Court Order, with most unwilling to bid on vessels until after the Jan 12th hearing and the official go ahead to import units once again.

China, for the second week in a row was the big hitter in an otherwise gloomy end to the year for the industry. Local buyers in both North and South continued to pick up their share of units at increasingly strong (and competitive with the sub continent) numbers, in a fitting end to another monumental year for the recycling industry there.

For week 51 of 2011, GMS demo rankings for the week are as below:

Country	Market Sentiment	Gen Cargo Prices	Tanker Prices
Pakistan	Cautious	USD 455/lt ldt	USD 485/lt ldt
India	Weak	USD 450/lt ldt	USD 480/lt ldt
China	Weak	USD 425/lt ldt	USD 445/lt ldt
Bangladesh	Weak	N/A	N/A

Source: Steel Guru (Sourced from GMS Weekly). 27 December 2011

http://www.steelguru.com/international_news/GMS_weekly_report_on_ship_breaking_industry_for_WEEK_51/243001.html

Shipyard belt's collector shops stay afloat as there's no such thing as use and throw:

It’s a treasure hunt of a different kind. Fifty kilometres away from the Bhavnagar district of Gujarat, a small village called Mannar has been made famous not just because of its proximity to Alang, the world’s largest ship recycling yard, but also for the unique trade it now specialises in. The entire drive from Mannar to Alang is dotted by a line of shops called “khadda” in local parlance, selling items procured from ships that come for scrapping to Alang.

Once a ship comes to the shipyard and the oil is taken out from the tank, all the material inside the ship is sold through an auction to local traders. Each shop or khadda specialises in a particular type of good. There are some who sell old and used ship machinery, generators, steel pipes, gas tank, tyres, life boats and life jackets.

There is another string of shops exclusively selling kitchens and related items, furniture, crockery, durables like televisions, mini refrigerators, microwave owens, air conditioners and even sleeping bags and coffee machines. An avid searcher may also stumble upon some interesting paintings and artefacts that come with the ship. Even food and grocery items like rice, sugar, spices, etc on the ship get sold off.

“Nothing on the ship goes waste,” says V Agarwal, a khadda owner. A recent spurt in the number of ships coming to Alang for scrapping from Japan, the US and Europe has increased these traders' inventory. “Our business is run by the ship. The more the ships, the greater the business,” says Agarwal. 

There are some 400 khaddas on the 10-km stretch of road, mostly run by people from the farming class in the village and nearby areas. 

Most items are sold per kg. Buyers, mostly wholesalers, come from the hotel industry and pick up items like imported crockery, mattresses and kitchen units in bulk. 

Some retail buyers also drop by to shop for personal purposes. For most, it is not just an added source of income but also something to give a boost to their social status by owning a shop and running one's own business. 

“Kheti mein koi ladki nahin deta hai (nobody gets their daughter married to a farmer),” says Narsi Bhai Khodiyar, a local trader. Most of them make about Rs 10,000-20,000 a month from sales. Each khadda is rented for Rs 3,000-4,000 monthly.

Several ancillary industries keep their businesses running with items procured from the ships. A fleet of trucks comes to get steel sheets and planks used to make TMT bars. The oil taken out of ships is sold for refining, after which it is sold to auto-rickshaws, trucks, etc.

In between these ‘ship’ stores, some chinese goods shops have also sprung up. The owners want to make use of the location and get some business from those coming to shop at the khadda, making hay while the sun shines.

Source: Business Standard. By Ruchika Chitravanshi. 25 December 2011  

http://www.business-standard.com/india/news/shipyard-belts-collector-shops-stay-afloat-as-theres-no-such-thing-as-usethrow/459634/

Beauharnois wary of pollution from ship dismantling:

MONTREAL — The demolition the old un-seaworthy Kathryn Spirit near Beauharnois does not float everybody's boat.

Town authorities believe the environmental off spin of the effort could endanger future efforts to develop the land.

"It's a new industrial activity, they've never been allowed to have such activities before," said Guillaume Levesque, City Councillor for Beauharnois

The waters are under federation authority but that doesn't mean that the federal minister has been giving the local MP the information she seeks.

"They don't answer or the answers are not really clear. We don't know if it's approved, we don't know what products are in the ship," said Anne Minh-Thu Quach MP Beauharnois-Salaberry.

The NDP says le Groupe St-Pierre has refused to provide them with a list of contaminants that could be found on the old vessel and that could be released when it's dismantled.

CTV Montreal's attempts to get answers were also unsuccessful.

The dismantling of the ship could entail pollutants entering the water supply.

"We still don't know if Environment Canada has received a report from Groupe St Pierre that explains the transformation of the ship," said the MP.

On Thursday the Quebec government responded to concerns and ordered work temporarily stopped as it examines the plans further.

Source: CTV. Ca. 22 December 2011

http://montreal.ctv.ca/servlet/an/local/CTVNews/20111222/mtl_shipstory_111222/20111222/?hub=MontrealHome

Ship project brings winter employment in the Sault:

Two local firms, MCM Marine and Reid Metals will dismantle the former Lake Michigan car ferry, Arthur K. Atkinson

Sault Ste. Marie, Mich. — SAULT STE. MARIE — Two local firms, MCM Marine and Reid Metals will dismantle the former Lake Michigan car ferry, Arthur K. Atkinson, according to a press release jointly-issued by the Darwin "Joe" McCoy and Ed Reid.

"We're pleased to be able to offer additional employment for the Sault area," said those orchestrating the project adding that the careful demolition and recycling of this vessel will protect the waters and eliminate future potential environmental risks.

The Arthur K. Atkinson, one of the last existing examples of the Railcar Great Lake Ferry, took her maiden voyage in January of 1917 sailing as the Ann Arbor #6, according to boat nerd member and historian, William Keetly who compiled the information upon learning the vessel was being docked in the Sault for the final time.

Keetly provided a great deal of interesting information highlighted by the December 1923 sinking of the Steamer Lakeland approximately 9 miles off of Sturgeon Bay, Wisconsin where the Ann Arbor #6 rescued 27 crewman from life boats in a northwest gale.

According to Keetly, the Ann Arbor #6 was renamed the Arthur K. Atkinson in 1959 and she subsequently became the first car ferry on the Great Lakes powered by diesel engines.

Her final years were filled with inactivity, however, starting with engine trouble in 1973. The Arthur K. Atkinson made a brief resurgence in August of 1980 and ran between Frankfort and Mantitowac, Wisc. until the ferry service between those two ports ceased in April of 1982. Since then, Keetly writes, the vessel had been towed to numerous locations under different owners before finally winding up in Detour in November of 2003.

Reid and McCoy credited the Interlake Steamship Company, the DeTour Dock Company, U.S. Marshall Service, Wellington Marine and the U.S. Coast Guard for helping to make this project a reality.

Employees of MCM Marine will dismantle the old ship, according to the press release, after removing items of historical significance for preservation.

Reid metals, a specialist in metal recycling, has over 50 years of experience in the demolition and re-use of metals, according to the press release, explaining the company's interest in salvaging the vessel.

Source: Sault Ste. Marie Evening News. 22 December 2011

http://www.sooeveningnews.com/features/x1569717495/Ship-project-brings-winter-employment-in-the-Sault

Cargo ship stranded on Brittany beach will be scrapped where it lies;

Vessel too badly damaged to risk being towed back to sea

The Maltese-registered cargo ship, TK Bremen, which ran aground off the coast of Brittany late last week in high winds and torrential rain now looks set to be scrapped where it lies.

Cargo ship TK Bremen is stranded on the beach at Kerminihy beach at Erdeven, near Lorient, France, on Friday, Dec. 16. High winds have beached the cargo ship off France's Atlantic coast and some of the 220 tons of fuel in its hold is leaking, threatening a local beach.

Preliminary inspections indicated that the vessel, built in 1982, is too badly damaged to be towed back to sea.

A spokesman for the maritime prefecture said: “We can’t take the risk of towing it, as there is a danger of it breaking up and becoming more difficult to remove.

“Strictly-speaking, the shipowner has the right to repair the vessel where it lies,” he added, “but it appears it struck several rocks and its hull has been perforated in several places.

Stranded ship TK Bremen 

“The most probable outcome is that the ship will be dismantled.”

The 19 crew members on board the TK Bremen were airlifted to safety by helicopter and booms deployed to contain an oil spill threatening a nearby beach.

The task of emptying the stricken ship’s tanks of their 220 tonnes of fuel could be completed by the end of the week.

The maritime prefecture spokesman said dismantling the TK Bremen would be a complex operation in what is an environmentally-protected zone. The ship would be cut up and the pieces loaded onto trucks.

Workers clean the beach after the Maltese-registered cargo ship the TK Bremen ran aground on Kerminihy beach at Erdeven, spilling oil from its engines on the coast of Brittany in western France on Dec.

“The objective is to restore the beach and the dunes by [next year’s] Easter holidays,” he added.

The TK Bremen left the Brittany port of Lorient en route to the UK as the storm was gaining strength, and dropped anchor off the nearby Isle de Groix to wait for an improvement in the weather. However, the ship was unable to maintain its mooring in the storm and began drifting towards the coast.

Source: IFW. By Stuart Todd. 22 December 2011

http://www.ifw-net.com/freightpubs/ifw/index/cargo-ship-stranded-on-brittany-beach-will-be-scrapped-where-it-lies/20017927856.htm

Former ferry Kalakala sold for $1; deal includes promise to restore vessel:

In a March 24, 2011, photo, the 276-foot Kalakala lists in its mooring on the Hylebos Waterway in Tacoma

TACOMA — The Kalakala has been sold for $1.

“The Kalakala will be saved from the scrap yard and restored to her full glory,” said owner Steve Rodrigues on his website, www.kalakala.org.

Rodrigues said the anonymous buyer promises to restore the rusty vessel, which plied the Port Angeles-Victoria route from 1954 to 1959 as a sleek silver, art deco ferry, and was retired from Puget Sound in 1967.

No other details about the plans were posted.

Rodrigues, a Tumwater developer, bought the 276-foot

Kalakala in hope of making it into an attraction.

It has been moored in Tacoma's Hylebos Waterway since 2004.

Faced with a deadline to move the rusty hulk or face a daily fine, Rodrigues earlier this month offered the historical vessel for just $1, if the buyer would immediately come up with $1 million to move and help restore the Kalakala and not sell it for scrap.

The Kalakala was built in 1935 on the hull of a burned San Francisco ferry.

After its ferry days, the Kalakala became a fish processing ship in Alaska.

It was towed back to Seattle's Lake Union in 1998.

Rodrigues bought the Kalakala in 2003 and created a foundation for its restoration.

The Kalakala Foundation had an office in Port Angeles for a short time, but Rodrigues could find little support to provide it a home.

After he promised jobs for partial restoration, the Makah tribe allowed him to tow it to Neah Bay.

But the failure to provide those jobs while the hull pounded and damaged a pier caused Rodrigues to find another location — the Hylebos Waterway — to store the faded ferry.

The Coast Guard is among the principal agencies that was pressuring Rodrigues to fix or move the vessel.

It listed at about a 30-degree angle last summer, but Rodrigues had the hull plugged and righted the vessel.

But his lease has ended, and he was to be held responsible for $32,000 in daily fines unless he moved the Kalakala out of the Hylebos.

Source: Peninsula Daily News. 20 December 2011

http://www.peninsuladailynews.com/article/20111220/news/312209993/former-ferry-kalakala-sold-for-1-deal-includes-promise-to-restore

GMS weekly report on PAKISTAN shipbreaking industry for Week 50 of 2011:

Despite the lack of market sales, there was a discernable demand from Pakistani buyers with enquiries on all sorts of units forthcoming.

Indeed, a number of cash buyer purchases both as is and delivered were successfully concluded last week as Gadani buyers emerged as more than capable stand ins whilst India looks to overcome its currency crisis.

There are still certainly one or two buyers keen to fill their yards before the end of the year and the current pricing, with Bangladesh soon to be back online, represents a good opportunity to pick up some reasonably priced vessels

Source: Steel Guru (Sourced from GMS Weekly). 20 December 2011

http://www.steelguru.com/middle_east_news/GMS_weekly_report_on_Pakistan_ship_breaking_industry_for_Week_50/241878.html

GMS weekly report on CHINESE shipbreaking industry for Week 50 of 2011:

Chinese buyers led the way once again in terms of new acquisitions, with three market sales to report and yet more interest from yards keen to stock up on new units going into the new year.

Two Greek owners decide to cash in on the improved levels on show the panama bulker Silver Arrow (11,400 LDT) and the Tomasos Brother handy size unit Alexis (6,377 LDT) both fetching impressively number of USD 425/LT LDT.

The upswing on price has made Chinese buyers very firm competitors with the Indian sub continent market- particularly for geographically positioned vessels. The feeling is that prices may yet push on may yet push on even further post Chinese New Year in February, and with steel prices still strong, the year ahead should be another busy one for the emerging powerhouse.

Source: Steel Guru (Sourced from GMS Weekly). 20 December 2011

http://www.steelguru.com/chinese_news/GMS_weekly_report_on_ship_breaking_industry_for_WEEK_50/241895.html

GMS weekly report on INDIAN shipbreaking industry for Week 50 of 2011:

The Indian Rupee this week sunk to its lowest level EVER, against the US Dollar. As such, any end buyer who had been growing in confidence and emerging to the bidding table again, quickly retreated with doors firmly shut.

As such there were no market sales to report and no potential sales on the horizon with most cash buyers now diverting their tonnage AWAY from WC India. Moreover, there remained little in the way of optimism for any deals due to arrive that were previously concluded at much higher levels.

Renegotiations have become a familiar scene these days in India and nerves are so frayed locally, that many are beginning to speculate whether the nadir has already been reached.

The couple of signs of encouragement on the horizon were the stable local steel plate prices in addition to the potential involvement of the Government, to avert a further slide. More will be known on this front but from here, it seems, the only way is up.

Interestingly despite reports to the contrary, it appears that MOL have sold two more of their double hulled VLCCs (ORION TRADER - 1998 Bit, 42,137 LDT and OHMINESAN, 1996 Bit, 38,949 LDT) for guaranteed green recycling in WC India for a price of USD 470/LT LDT. This follows the sale of first double hull VLCC to be scrapped several weeks ago, the ATLANTIC LIBERTY to the same green yard in Alang.

Source: Steel Guru (Sourced from GMS Weekly). 20 December 2011

http://www.steelguru.com/indian_news/GMS_weekly_report_on_Indian_ship_breaking_industry_for_WEEK_50/241838.html

GMS weekly report on BANGLADESH shipbreaking industry for Week 50 of 2011:

The result of the hearing on 14th December this week brought back mixed results. Whilst there were several errors in the ship recycling code submitted to the High Court and the BSBA were required to re-submit the corrected version on January 12th next, lawyers were looking into the possibilities of importing vessels WHILST those corrections are being made.

Suggestions this week that the market is once again open are wide of the mark more will be known next week once cash buyers start testing the rules. The judge of course still has to sign the extension something that has taken months in the past and until that is done, all concerned must wait a little longer.

It must be stressed though that NO vessels have yet been issued NOC to beach and as yet, no new vessels have been committed as many end buyers remain reluctant and somewhat nervous to buy new units until the rules are ratified and the gates are officially opened.

Source: Steel Guru (Sourced from GMS Weekly). 20 December 2011

http://www.steelguru.com/indian_news/GMS_weekly_report_on_Bangladesh_ship_breaking_industry_for_WEEK_50/241842.html

Treasure Ship Demolition Begins:

It was once a staple and an icon along Grand Lagoon, but later considered an eyesore and soon it will be gone.

The Treasure Ship off Thomas Drive is finally being demolished.

Crews were out today using heavy machinery to tear down the ship.

The property owner acquired a demolition permit to tear down the ship after a fire caused it to close down in April of 2010.

Since then, the ship has fallen into a state of disrepair with pieces of burned wood and tarp hanging off its sides.

Source:  WJHG. By  Kavontae Smalls. 7 December 2011

http://www.wjhg.com/home/headlines/Treasure_Ship_Demolition_Begins_135125023.html