30 March 2012

"Ghost Fleet" ship departs area Friday:

A ship from the James River Reserve Fleet departed the area Friday.

The Cape Cod, which was scheduled to leave earlier in the month, leaves 13 ships in the "ghost fleet" located off Fort Eustis.

The vessel was sold for recycling to ESCO Marine Inc., Department of Transportation Spokeswoman Kim Riddle, wrote in an email. The company is located in Brownsville, Texas.

The USS Cape Cod was built in San Diego, California, by the National Steel and Shipbuilding Company and launched on August 2, 1980. The vessel was the third Yellowstone-class destroyer tender and was specially designed to service the Spruance-class destroyers, the Truxtun-class cruisers and Oliver Hazard Perry-class frigates, according to Riddle.

The vessel entered the James River Reserve Fleet in September 2000 and was officially transferred to the Maritime Administration in July 2001, according to Riddle.

Source: Daily Press. By Ashley Kelly. 30 March 2012
http://www.dailypress.com/news/breaking/dp-nws-ghost-fleet,0,5474201.story

The 7th Annual Ship Recycling Conference:

19 - 20 June 2012, Le Meridien Piccadilly, London
Green recycling and green profits: working towards a sustainable industry
Part of our GST series of events, this is the annual gathering of choice for all maritime executives who want to remain at the cutting edge of this dynamic industry.
2012 Conference Highlights include:
Market snapshot
Assessing the volumes, prices and forecasts for shipping recycling in 2012 and beyond
Regulatory review 
Mapping out the future regulatory landscape
Shipowner’s perspective
Operating green and cost effective recycling practices
Spotlight sessions
Understanding the legalities of ship recycling: do’s and don’ts for shipowners
Recycling in practice
Examining successful initiatives to implement the standards of the HKC so far
Global recycling facilities forum
Reviewing developments and outlook for the world’s leading ship recycling nations: India, Bangladesh, Pakistan, Turkey and China
Source: Informa Maritime Events.

27 March 2012

GMS report on shipbreaking industry for WEEK 12 of 2012:

Another busy week in the ship recycling industry saw nearly all markets secure tonnage apart from Bangladesh, where the same old problems persist despite patient cash buyers committing vessels to end buyers.

India saw the annual influx of reefers begin, and with China the only real competitor to take reefer units we can expect a number of sales to take place as the high season is due to end in the coming months.

Meanwhile, the profile of potential scrap units has once again shifted from the Panamax and Handysize units flooding the market in the early part of the year, to container vessels, VLCCs and now reefers, Aframax tankers and capsize bulkers.

There continues lingering doubt as to whether the current rates can persist amidst the constant supply of tonnage and the gradual yard stocking of the keenest and most financially sound buyers.

Indeed, it is very much an end buyer's market, as cash buyer speculation has been subdued of late. It is now a prerequisite of any rational deal to have an open and keen end buyer bidding on the unit so as not to leave the deal exposed at the time of resale delivery.

For that reason, it is also risky doing as is deals, unless at un missable levels since come time of resale, the market may well be down further from the time of purchase, representing a potentially huge loss for the cash buyer.

Finally, China has once again picked up for the week, proving real competition to the Indian sub continent markets, particularly for those geographically positioned units and for the continued disappointment of the Bangladeshi market in terms of prevailing levels and the ability to perform deliver vessels.

For week 12 of 2012, GMS demo rankings for the week are as below:

CountryMarket SentimentGEN CARGO PricesTANKER Prices
IndiaWeakUSD460/lt ldtUSD490/lt ldt
PakistanWeakUSD460/lt ldtUSD490/lt ldt
BangladeshWeakUSD450/lt ldtUSD 480/lt ldt
ChinaBullishUSD420/lt ldtUSD430/lt ldt

Source: Steel Guru. (Sourced from GMS Weekly). 27 March 2012
http://www.steelguru.com/international_news/GMS_report_on_ship_breaking_industry_for_WEEK_12_2012/256283.html

GMS report on INDIAN shipbreaking industry for WEEK 12 of 2012:

A spate of smaller units coming onto the market - including a vast array of reefers, as the high season once again due to close - saw a number of deals concluded for the week into India.

Well over 5 market reefers were concluded for the week (not all could be reported) in what is expected to a busy few weeks ahead in a sector that is gradually being phased out - in favor of container vessels.

Star Reefers sold their TAURUNGA STAR (4,873 LDT) and VALPARAISO STAR (5,613 LDT) 'as is' Fujairah with sufficient fuel for the voyage to WC India. The Norwegian country of build and some 233 T of aluminum on board led to the strong USD 525/LT LDT on the Taurunga Star, whilst the comparatively poor Spanish country of build led to the less than impressive USD 415/LT LDT on the Valparaiso Star*.

Following the sale of the EX EXXON VALDEZ last week into the Indian market (converted to bulker and sold as the ORIENTAL NICETY 'as is' Singapore for USD 460/LT LDT), several more bulkers were sold this week including the POPI S (11,024 LDT) for an extraordinary USD 489/LT LDT and the FISHER K (7,224 LDT) for USD 475/LT LDT.

Finally/ chemical tanker SLIN QLTEEN 1 saw a remarkably firm price, being committed at USD 820/Ton, thanks to the 426 Tons of Stainless Steel onboard.

Source: Steel Guru. (Sourced from GMS Weekly). 27 March 2012
http://www.steelguru.com/indian_news/GMS_report_on_Indian_ship_breaking_industry_for_WEEK_12_of_2012/256187.html

GMS report on BANGLADESH shipbreaking industry for WEEK 12 of 2012:

Despite experiencing problems with deliveries, demand in the Bangladeshi market showed hints of surfacing this week. Nevertheless, the same issues with finance and delays in delivering vessels still exist, making any new deals, awkward and difficult as the ones of the recent past.

Even though there are one or two keen buyers expressing an interest in fresh tonnage, the few cash buyers that were able to sell into the local market managed to offload some of their 'as is' and delivered deals that had been waiting outside for some time now.

The fact remains that the current levels on offer are less than impressive and some ways behind what Pakistan - WC India are able to offer. On the other hand, the difference in levels between China and Bangladesh too, is even so slim, that it was not worthwhile for owners or cash buyers to consider bringing their vessels over from the Far East, to the sub-continent especially with Chinese demo prices picking up a touch for the week.

Source: Steel Guru. (Sourced from GMS Weekly). 27 March 2012
http://www.steelguru.com/indian_news/GMS_report_on_Bangladesh_ship_breaking_industry_for_WEEK_12_of_2012/256191.html

GMS weekly report on PAKISTAN shipbreaking industry for WEEK 12 of 2012:

Pakistan was able to use the constant flow of tonnage into India, as a diversion to secure tonnage of their own.

Traditionally, less sensitive than their competitors to countries of build India can heavily discount amongst others Spanish, Chinese, East German and Bulgarian builds Gadani buyers picked up a few larger bulkers this week.

The Liliana Dimitrova (9,937 LDT) and Svilen Russev (9,989 LDT) from Navilbulgar saw a somewhat weaker USD 460 per LT LDT in Pakistan owing to the lower numbers on offer in India for Bulgarian countries of build.

The VLOC FAITH N (35,045 LDT) is being talked about in the Pakistan market despite the relevant cash buver having all Indian sub cont options open to satisfy the strong LJSD 478/LT LDT paid.

Source: (Sourced from GMS Weekly). 27 March 2012
http://www.steelprices-china.com/news/index/2012/03/27/MzQwMTU%3D/GMS_weekly_report_on_Pakistan_ship_breaking_industry_for_WEEK_12_2012.html 

More ships to be scrapped this year:

Ship scrapping will rise 19 per cent to a record this year as stricter environmental rules prompt owners to sideline older vessels in favour of newer, more fuel-efficient designs, said Clarkson Plc.
Demolitions will increase to 49.1 million deadweight tonnes, surpassing the current all-time high of 41.2 million tonnes reached last year, London-based Clarkson, the world's largest shipbroker, said yesterday.
Ship fuel, or bunkers, almost tripled in price since January 2009, lowering returns for older vessels with higher consumption, Clarkson said.
Reduced new-ship prices and tougher regulations aimed at curbing emissions may also encourage owners to renew their fleets, according to the shipbroker's monthly World Shipyard Monitor.
"Older vessels will face increased competition from tonnage delivered in 2011, with increases on bunker prices pressuring earnings," the shipbroker said.
Scrapping of tankers and containers will increase this year, Clarkson forecast. Fifty-four per cent of all ships demolished last year were dry-bulk carriers that transported minerals and grains, spurred by a slump in hire costs to the lowest level since 2002.
Source: Hellenic Shipping News. 24 March 2012

Former Exxon Valdez, now Oriental Nicety, sold for scrap:

What do you do when your name becomes linked with one of the most horrific environmental disasters in American history - and no one wants you around anymore?
In the case of the Exxon Valdez, arguably the most famous ship of modern times, you move and you change your name.
Twenty-three years after the oil supertanker became synonymous with what its Irving-based owner at the time calls "one of the lowest points in ExxonMobil's 125-year history," the ship is slated for the scrap heap.
After six name changes and several ownership shuffles - and a 2010 collision in the South China Sea - the ship has been sold as scrap for $16 million and was under her own power Tuesday afternoon to Singapore and a coming date with one of the several "shipbreakers" along the shores of the Indian Ocean.
That will mark the end of the most well-known ship afloat. The Valdez, (pronounced val-deez) was only 3 years old when it ran aground in Alaska's Prince William Sound on March 24, 1989, spilling at least 11 million gallons of crude into the fragile ecosystem of the bay, killing tens of thousands of seabirds and other marine life and damaging 700 miles of coastline.
"It was a tragic accident and one we deeply regret," Alan Jeffers, an ExxonMobil spokesman said on Tuesday.
The disaster cost ExxonMobil, more than $4 billion in cleanup costs, civil settlements and damages and incalculable harm to its reputation.
In 1990, Congress passed a law prohibiting any ship that had caused a spill of more than 1 million gallons from navigating Prince William Sound, thus banishing the Exxon Valdez from the Alaska pipeline-to-West Coast run for which it was built.
Even as disaster crews were cleaning up the mess in Alaska, the ship was towed to San Diego, repaired and renamed the Exxon Mediterranean and moved to work in shipping lanes in Europe, the Middle East and Asia. The name was changed again to SeaRiver Mediterranean when Exxon moved its fleet under a new subsidiary, River Maritime Inc. The name was later shortened to S/R Mediterranean and then Mediterranean. In 2007 and 2008 the ship was converted to become an ore hauler, sold by ExxonMobil and renamed the Dong Fang Ocean. In November of 2010 the Dong Fang collided with the Aali, a Malta-flagged cargo ship, in the South China Sea. The Dong Fang was towed to Longyan Port in the Chinese province of Shandong. Again renamed, this time to Oriental Nicety, her sale to Best Oasis was announced by Maryland-based Global Marketing Systems, Inc. the largest cash buyer of ships slated for scrap.
The disaster in Prince William Sound caused Exxon Mobil to re-examine its operating practices.
"As a result of the accident we took a number of reforms and adopted a system that is now industry-leading for environmental and safety performance," ExxonMobil's Jeffers said Tuesday, citing the company's maritime safety record since. "That is really the result of an effort that came out of the Valdez accident."
The company is now building two double-hulled tankers at the Aker Philadelphia Shipyard for delivery in 2014. They are smaller than the Exxon Valdez and will replace two others in the SeaRiver Maritime Fleet.
Source: The Cordova Times. By Bill Bowen. 23 March 2012

Media Alert - Toxic ship Exxon Valdez sent for dismantling: NGO Shipbreaking

Exxon Valdez bleeding oil
26 March 2012, Brussels - The Exxon Valdez, now re-named the Oriental Nicety, a ship responsible for one of the largest oil spills in U.S. history in 1989, has been sold for scrapping on the infamous ship breaking beaches of India. Environmental, human rights and labour rights organisations represented by the Brussels-based NGO Shipbreaking Platform fear that the beaching of the Exxon Valdez will cause another environmental disaster and will also harm shipbreaking workers and local communities. The NGOs call on the government of India to refuse the import of the toxic ship and say no to illegal toxic waste trade. It is expected that the Exxon Valdez, built in 1984-1986 in the U.S. contains many tonnes of hazardous materials, including toxic paints, fuel and chemical residues. Currently the ship is located in Malaysia and may soon hit the Indian beaches.
“If the ship is allowed to come to India, not only will it be environmentally hazardous given the generally poor level of environmental compliance and monitoring, but will reinforce the fact that countries in the South continue to serve as dumping ground for hazardous waste of the North. Following the ‘precautionary principle’ it is important that no permission be granted for entry of the ship to India,” Ritwick Dutta, environmental lawyer and platform member, said.
23 years ago, the oil tanker Exxon Valdez belonged to the American oil company Exxon Mobil. On 24 March 1989, the Exxon Valdez struck a reef in the Prince William Sound in waters off Alaska, spilling approximately 34,000 tonnes of oil into the Pacific Ocean. The pollution was so great that the clean-up costs alone amounted to USD 2.5 billion. By the end of 2009, Exxon Mobil had paid nearly USD 1 billion in damages.
“It is outrageous that this ship, that has already created one environmental catastrophe is being allowed to kill and pollute yet again,” said Jim Puckett, Executive Director of the Basel Action Network. “The ship’s owner must be held accountable for simply selling this toxic time bomb and then walking away.”
Exxon sold the ship in August 2008 to China Ocean Shipping (Group) Company (COSCO), owner of the second largest shipping fleet in the world. COSCO claims to be a leading participant in the United Nations Global Compact, committing to business operations that uphold fundamental human rights, labour and environment protection laws. However, this move by COSCO to sell the former Exxon Valdez for beaching and breaking in India starkly violates this Compact. COSCO sold the vessel to a shipbroker for USD 13.4 million according to data from Intermodal (1). Global Marketing Systems (GMS), a US company specialised in the brokering of vessels for demolition recently bought the ship.
Shipbreaking as is done on the beaches of South Asia is one of the world’s most dangerous and polluting enterprises (2). Toxic ships should be dismantled in green recycling facilities that forbid beaching and where workers and the environment are protected from exposure to toxic waste.
Notes:
(2) For more information see our website www.shipbreakingplatform.org

Source: NGO Shipbreaking Platform.

25 March 2012

EU Raises Ship Recycling Standards to Protect Workers, Environment:

BRUSSELS, Belgium, March 23, 2012 (ENS) - European ships must be recycled only in shipbreaking facilities that are safe for workers and environmentally sound, according to new rules proposed today by the European Commission.

More than 1,000 large old commercial ships, such as tankers and container vessels, are recycled for their scrap metal every year, but many European ships are broken by hand in substandard facilities on the tidal beaches of South Asia.

These facilities lack the environmental protection and safety measures needed to manage end-of-life ships that contain hazardous materials, such as asbestos, polychlorinated biphenyls, tributyl tin and oil sludge. High accident rates, health risks for workers and extensive environmental pollution are the results.

The new rules allow, under strict conditions, the recycling of EU-flagged ships in countries that are not members of the Organization for Economic Cooperation and Development. The 34 members of the OECD include many of the world's most advanced and also emerging countries, but do not include the countries of South Asia.
The new rules adopt the system of survey, certification and authorization required by the Hong Kong Convention, an international treaty for the safe and environmentally sound recycling of ships adopted in 2009.

The Commission aims to implement the Hong Kong Convention quickly, without waiting for its ratification and entry into force, a process which will take several years.

The Hong Kong Convention must be ratified by at least 15 major flag and recycling countries to enter into force. These countries should represent at least 40 percent of the world fleet and almost 50 percent of the recycling capacity available worldwide.

To speed its formal entry into force, the Commission also presented today a draft decision requiring the 27 EU Member States to ratify the Convention.

The new rules, which will take the form of a regulation, propose a system of survey, certification and authorization for large commercial seagoing vessels that fly the flag of an EU Member State, covering their whole life cycle from construction to operation and recycling.

European Environment Commissioner Janez Potocnik presented the regulation jointly with Vice President Siim Kallas, Commissioner for Transport.

"Although the ship recycling sector has improved its practices, many facilities continue to operate under conditions that are dangerous and damaging," Commissioner Potocnik said. "This proposal aims to ensure that our old ships are recycled in a way that respects the health of workers as well as the environment. It is a clear signal to invest urgently in upgrading recycling facilities."

Under the new rules, European ships must draw up an inventory of the hazardous materials present on board, and apply for an inventory certificate. In addition, the amount of hazardous waste on board, including cargo residues and fuel oil, must be reduced before the ship is delivered to a recycling facility.
Ship recycling facilities will have to meet a set of environmental and safety requirements to be included on a list of authorized facilities worldwide. European ships will be allowed to be recycled only in facilities on the list.

Some of the requirements to be met by the ship recycling facilities are even stricter than those required by the Hong Kong Convention to ensure better traceability for European ships, and environmentally sound management of hazardous wastes aboard.

To ensure compliance, the proposal requires ship owners to report to national authorities when they intend to send a ship for recycling. By comparing the list of ships for which they have issued an inventory certificate with the list of ships which have been recycled in authorized facilities, authorities will be able to spot illegal recycling more easily.

At present, the recycling of European ships is governed by the Waste Shipment Regulation of 2006, which prohibits the export of hazardous waste to countries that are not members of the OECD.

The existing legislation is not specifically designed for ships and is often circumvented, say the commissioners. They recognize a lack of adequate recycling capacity in OECD countries, but add that it is difficult to determine when a ship becomes waste and which country is exporting the ship.

In 2009, more than 90 percent of European ships were dismantled in ship recycling facilities in non-OECD countries, some of which were substandard.

The newly proposed rules aim to address the shortcomings of the Waste Shipment Regulation and to allow, under strict conditions, the recycling of EU-flagged ships in non-OECD countries.

The commissioners say the quantity of European end-of-life ships is significant, since 17 percent of world tonnage is registered under an EU flag. This makes it a priority for the EU to improve ship dismantling practices worldwide.

Source: 23 March 2012

24 March 2012

Ships won't be able to ‘de-flag' before dismantling:


Commission insists new rules will prevent de-flagging before shipbreaking.
The European Commission has said that new rules proposed today (23 March) for tighter restrictions on how and where EU shipowners can dismantle their vessels will combat the practice of ‘de'flagging' – which owners are using to avoid current rules.
Under the current waste-shipment regulation, EU-flagged ships cannot be exported for dismantling. But owners avoid this rule by switching ships' flags to a non-EU country before it is decommissioned. The new regulation would take ships out of the waste-shipment regulation and create new rules.
The new rules would make EU shipowners responsible for ensuring their ships are dismantled safely and environmentally soundly within 6 months after selling them or de-flagging them. If not, they could be fined by the Commission. The Commission will draw up a list of facilities considered ‘sustainable' under the proposal. A Commission official said that it would not be economically beneficial for shipowners to wait any longer than six months before dismantling.
“This proposal aims to ensure that our old ships are recycled in a way that respects the health of workers as well as the environment,” said Janez Potočnik, the European commissioner for the environment. “It is a clear signal to invest urgently in upgrading recycling facilities.”
Pollution and health fears:
Currently, an estimated 80% of out-of-service ships are beached in India, Bangladesh and Pakistan for dismantling. When done improperly, ship recycling harms workers and pollutes the environment. The new rules largely implement global standards agreed by the International Maritime Organization (IMO) in 2009 in the Hong Kong Convention.
No country has yet ratified the convention, and there is no deadline for implementation, though the rules are expected to be in place within eight to ten years. The Commission wants to oblige member states to ratify the convention now. For EU carriers, owners of 40% of the world's ships, the rules would take effect in 2014.
Source: European Voice. By Dave Keating. 23 March 2012

New rules about recycling of ships:

The European Commission proposed new rules to ensure that European ships are only recycled in facilities that are safe for workers and environmentally sound.
More than 1,000 large old commercial ships such as tankers and container vessels are recycled for their scrap metal every year, but many European ships end up in substandard facilities on the tidal beaches of South Asia. These facilities mostly lack the environmental protection and safety measures needed to manage the hazardous materials contained in end-of-life ships. These include asbestos, polychlorinated biphenyls (PCBs), tributyl tin and oil sludge. This leads to high accident rates and health risks for workers and extensive environmental pollution.
The new rules, which will take the form of a Regulation, propose a system of survey, certification and authorisation for large commercial seagoing vessels that fly the flag of an EU Member State, covering their whole life cycle from construction to operation and recycling.
This system builds upon the Hong Kong Convention for the safe and environmentally sound recycling of ships, which was adopted in 2009. The EU Commissions’ proposal aims to implement the Convention quickly, without waiting for its ratification and entry into force, a process which will take several years. To speed up the formal entry into force of the Hong Kong Convention, the Commission also presented a draft decision requiring Member States to ratify the Convention.
Under the new system, European ships will have to draw up an inventory of the hazardous materials present on board, and apply for an inventory certificate. The amount of hazardous waste on board (including in cargo residues, fuel oil, etc.) must be reduced before the ship is delivered to a recycling facility.
Ship recycling facilities will have to meet a set of environmental and safety requirements in order to be included on a list of authorised facilities worldwide. European ships will be allowed to be recycled only in facilities on the list. Some of the requirements to be met by the ship recycling facilities are stricter than those foreseen by the Hong Kong Convention. This will ensure better traceability for European ships and will guarantee that the waste resulting from dismantling (and any hazardous materials it contains) is managed in an environmentally sound way.
To ensure compliance, the proposal requires ship owners to report to national authorities when they intend to send a ship for recycling. By comparing the list of ships for which they have issued an inventory certificate with the list of ships which have been recycled in authorized facilities, authorities will be able to spot illegal recycling more easily. The sanctions proposed in the Regulation will also be more specific and precise.
The Council and the European Parliament will now discuss the Commission’s proposal.
At present, the recycling of ships is governed by the Waste Shipment Regulation, which prohibits the export of hazardous waste to non-OECD countries. However, the existing legislation is not specifically designed for ships and is often circumvented. This stems from a lack of adequate recycling capacity in OECD countries – but it is also difficult to determine when a ship becomes waste and which country is exporting the ship. The new proposal aims to address the shortcomings of this legislation and to allow, under strict conditions, the recycling of EU-flagged ships in non-OECD countries.
In 2009, more than 90 % of European ships were dismantled in ship recycling facilities in non-OECD countries, some of which were substandard. The quantity of European end-of-life ships is significant, since 17 % of world tonnage is registered under an EU flag. This makes it a priority for the EU to improve ship dismantling practices worldwide.
Highly concerned about the negative health and environmental impacts of ship recycling, the Commission adopted an EU strategy for better ship dismantling on 19 November 2008. This strategy proposed a number of measures to improve ship recycling as soon as possible, without waiting for the entry into force of the Hong Kong Convention. Today's proposal builds on ideas contained in the strategy.
The Hong Kong Convention needs to be ratified by at least 15 major flag and recycling countries to enter into force. These countries should represent at least 40 % of the world fleet and a significant part (almost 50 %) of the recycling capacity available worldwide.
Source: DI-VE. by di-ve (editorial@di-ve.com). 23 March 2012

EEDI guide for tankers published:

To help shipowners, vessel designers, etc to come to terms with the IMO’s Energy Efficiency Design Index (EEDI), DNV, together with the independent privately-owned German Hamburg Ship Model testing facility HSVA, has published ‘DNV Fuel Saving Guideline - for Tankers’.
This is part of a trilogy of guidelines - the other two concern containerships and bulk carriers.
With new designs offering up to 30% higher fuel efficiency, it is expected that charterers will focus more on fuel efficiency in the future, DNV’s business director Jost Bergmann warned.
At the guide’s launch, Bergmann illustrated this point by saying recently MOL had sold a 14-year old VLCC for recycling. Although the reasons for selling the vessel were not known to DNV, Bergmann suggested that with today’s high fuel costs, the vessel might not be as competitive today as when it was designed and built in the mid 1990s.
DNV said that any measure considered for reducing EEDI must affect one or more of the index’s equation’s parameters. For example, the most effective method is to reduce the vessel’s design speed. A 10% reduction in the design speed results in at least a 25% reduction in installed power, giving an EEDI reduction of around 20%.
It is the installed power that reduces the EEDI and not the power demand, the guideline pointed out.
The guide listed some of the possibilities on offer today for reducing EEDI, together with the parameter affected. DNV gave the following examples;
M/e installed power reduction - the hull and propeller efficiency can be improved and/or the speed reduction can be achieved by de-rating the engine.
Lower specific fuel consumption – switch to a more efficient engine/engine control tuning.
Increase the speed without increasing installed power – improved hull and propeller efficiency (ie, fitting Mewis Duct, prop boss cap fin, or other flow devices).
Fuel as an energy source with lower carbon content - eg LNG, biofuel (no guideline in place).
Innovative mechanical energy efficient technology – eg kites (no guideline in place).
Innovative electrical energy efficient technology – eg waste heat recovery.
Increase the capacity – larger vessels.
In addition there will be compensation when using shaft generators and applying ice strengthening. Other correction factors are under development, eg voluntary structural enhancements.
Some of the suggestions, such as kites and solar panels, cannot provide the power needed all the time for the main engine and thus the EEDI will not be reduced. There are no guidelines in place for the use of these measures to reduce EEDI, but they are expected to be developed at a later stage, DNV said.
Propulsion efficiency devices are not expected to reduce the engine power, but will enable the vessel to attain a higher speed, while the use of biofuels is not covered in the current framework, as their cargo content cannot easily be ascertained.
Source: Tanker Operator. 23 March 2012

EC proposes tighter laws on shipbreaking:

Brussels. The European Commission today proposed new rules to ensure that European ships are only recycled in facilities that are safe for workers and environmentally sound. More than 1000 large old commercial ships, such as tankers and container vessels, are recycled for their scrap metal every year, but many European ships end up in substandard facilities on the tidal beaches of South Asia, a press release of the EC informs. These facilities mostly lack the environmental protection and safety measures needed to manage the hazardous materials contained in end-of-life ships. These include asbestos, polychlorinated biphenyls (PCBs), tributyl tin and oil sludge. This leads to high accident rates and health risks for workers and extensive environmental pollution.
Environment Commissioner Janez Potočnik said: "Although the ship recycling sector has improved its practices, many facilities continue to operate under conditions that are dangerous and damaging. This proposal aims to ensure that our old ships are recycled in a way that respects the health of workers as well as the environment. It is a clear signal to invest urgently in upgrading recycling facilities.” Commissioner Potočnik presented the regulation jointly with Vice President Siim Kallas, Commissioner for Transport.
The new rules, which will take the form of a Regulation, propose a system of survey, certification and authorisation for large commercial seagoing vessels that fly the flag of an EU Member State, covering their whole life cycle from construction to operation and recycling.
This system builds upon the Hong Kong Convention for the safe and environmentally sound recycling of ships, which was adopted in 2009. Today's proposal aims to implement the Convention quickly, without waiting for its ratification and entry into force, a process which will take several years. To speed up the formal entry into force of the Hong Kong Convention, the Commission also presented today a draft decision requiring Member States to ratify the Convention.
Under the new system, European ships will have to draw up an inventory of the hazardous materials present on board, and apply for an inventory certificate. The amount of hazardous waste on board (including in cargo residues, fuel oil, etc.) must be reduced before the ship is delivered to a recycling facility.
Ship recycling facilities will have to meet a set of environmental and safety requirements in order to be included on a list of authorised facilities world wide. European ships will be allowed to be recycled only in facilities on the list. Some of the requirements to be met by the ship recycling facilities are stricter than those foreseen by the Hong Kong Convention. This will ensure better traceability for European ships, and will guarantee that the waste resulting from dismantling (and any hazardous materials it contains) is managed in an environmentally sound way.
To ensure compliance, the proposal requires ship owners to report to national authorities when they intend to send a ship for recycling. By comparing the list of ships for which they have issued an inventory certificate with the list of ships which have been recycled in authorized facilities, authorities will be able to spot illegal recycling more easily. The sanctions proposed in the Regulation will also be more specific and precise.
Source: FOCUS News Agency. 23 March 2012

Indian ship broker buys Exxon Valdez as scrap:

NEW DELHI — An Indian company that dismantles old ships has bought the notorious Exxon Valdez, the tanker involved in one of the worst oil spills in U.S. history, a company official said today.
Though Gaurav Mehta, an official at Best Oasis Ltd., declined to say what the company had planned for the Exxon Valdez, it seemed likely the infamous tanker was headed for the scrapyard.
Mehta said his company had recently bought the tanker, which has undergone five name changes since the 1989 oil spill and is now known as the “Oriental Nicety.”
Hong Kong-based Best Oasis is a wholly owned subsidiary of Indian ship breaking firm Priya Blue Industries, based in the western state of Gujarat.
“I can confirm that Best Oasis has bought the tanker, but can give no details till we take delivery of it,” Mehta said.
On March 24, 1989, millions of gallons of crude oil spewed into Alaska's ecologically sensitive Prince William Sound when the Exxon Valdez dashed against rocks, coating the shoreline with petroleum sludge and killing nearly 40,000 birds. The spill caused incalculable environmental damage and demolished the fishing industry in the area.
Texas-based Exxon Mobil Corp., spent $900 million in restitution in a 1991 settlement and is battling more litigation from the spill.
The tanker, though, moved on, with its name and its ownership changing repeatedly in an apparent effort to keep the ship in use while distancing itself from the environmental tragedy that bears its name.
The Exxon Valdez was known at various times as the Exxon Mediterranean, SeaRiver Mediterranean, Dong Fang Ocean and, finally, the Oriental Nicety.
In 2007, it was converted into an ore carrier. Three years later, it was involved in a collision in the South China Sea.
Mehta refused to reveal the price Best Oasis paid for the tanker.
“I can't reveal any further information,” he said.
Best Oasis was set up in Hong Kong in 2010 for the “sole purpose of cash buying of vessels for recycling at Alang, India, Pakistan, Bangladesh and China,” the company website said.
India has one of the world's largest industries for breaking down old ships and oil tankers located in the coastal town of Alang, along the Gulf of Cambay in Gujarat.
Source: Richmond Times Dispatch. 23 March 2012

Indian company buys Exxon Valdez, likely to scrap notorious tanker blamed for Alaska oil spill:

NEW DELHI — The notorious Exxon Valdez tanker, responsible for one of the worst oil spills in U.S. history two decades ago, has been bought by an Indian company almost certainly to be scrapped for its steel and spare parts.
Best Oasis Ltd. would not disclose the price or purpose of its purchase, but it buys old ships solely to dismantle them, reuse salvageable material and discard the rest.
On March 24, 1989, millions of gallons of crude oil spewed into Alaska’s ecologically sensitive Prince William Sound when the Exxon Valdez dashed against rocks, coating the shoreline with petroleum sludge and killing nearly 40,000 birds. The spill caused incalculable environmental damage and demolished the fishing industry in the area.
Texas-based Exxon Mobil Corp., spent $900 million in restitution in a 1991 settlement and is battling more litigation from the spill.
The tanker moved on, with five name changes since the spill and ownership changing repeatedly, apparently to keep the ship in use while distancing it from the disaster.
Best Oasis official Gaurav Mehta said his company bought the ship recently. It’s now a converted ore carrier known as the Oriental Nicety, but he did not disclose its current location and status.
“I can confirm that Best Oasis has bought the tanker, but can give no details till we take delivery of it,” Mehta said.
The ship is 26 years old, not significantly aged for tankers, but it was considerably damaged in its lifetime. It was split open by rocks in the Alaska spill and was damaged in a collision in the South China Sea in 2010.
Hong Kong-based Best Oasis is a wholly owned subsidiary of Priya Blue Industries in the western state of Gujarat.
India has one of the world’s largest industries for breaking down old ships and oil tankers in the town of Alang, along the Gulf of Cambay in Gujarat.
Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Source: Washington Post. 23 March 2012

EU Ship Recycling proposal will not stop the dumping of toxic ships: NGO Shipbreaking Platform

Brussels -– Today the European Commission presents its proposal for regulating the dismantling of toxic end-of-life ships. So yesterday the NGO Shipbreaking Platform, a Brussels-based coalition of environmental, labour rights and human rights organisations was invited to meet European Environment Commissioner Janez Potocnik. During the meeting the Platform reiterated its call on Europe to stop the unjust practice of dumping toxic ships on the poorest communities of South Asia and already identified important areas in the upcoming proposal that will need to be strengthened.
80 percent of the global end-of-life ships are broken in Bangladesh, Pakistan and India on tidal beaches whose soft sands cannot support crucial safety measures such as heavy lifting or emergency response equipment and which allow pollution to seep directly into the delicate coastal zone environment.
Last week during a ship recycling conference in Singapore, the European Commission announced its intention to propose a new regulation on ship recycling, which will transpose the International Maritime Organisation’s Hong Kong Convention on Safe and Environmentally Sound Ship Recycling – and, at the same time, remove ships from the current European Waste Shipment Regulation. Commissioner Potocnik informed the NGO Shipbreaking Platform that the new regulation will seek to regulate only ships sailing under a European flag. The Platform is concerned that the proposal, which will be published tomorrow, will do little to reverse the current trend of unsafe beach breaking with no care for waste management in developing countries.
Beyond the Hong Kong Convention:
“With no economic incentive to change current shipping and shipbreaking practices, and faced with the reality that there are few, and probably will be even less, European flagged ships at end-of-life, the Commission’s proposal effectively rids Europe of its responsibility – and opportunity – to provide a sustainable solution to stop toxic ships from poisoning workers and the environment in some of the world’s most vulnerable countries,” said Ingvild Jenssen, Director of the NGO Shipbreaking Platform.
The Platform believes that the Hong Kong Convention provides for weak grounds on which to settle a solid regulatory framework and therefore applauds the introduction of stricker requirements at the European level both with regards to clean ship building and environmentally sound ship dismantling. But, while the Commission claims that the upcoming European proposal goes beyond the Hong Kong Convention in taking a clear stance against the beach breaking method and only allowing EU flagged vessels to be sold to recycling facilities approved by the EU, in reality these requirements will only affect a small number of ships.
Two-thirds under non-European flags:
Whereas 40 percent of the world fleet is owned by European-based companies, only a small percentage is sailing under a European flag at end-of-life. In 2011 almost two-thirds of all European-owned vessels sold for breaking in South Asia were registered under non-European flags. The majority of these flags, such as St Kitts and Nevis; the Bahamas; Comoros; and St Vincent and Grenadines, are well-known for sustaining substandard practices,their lack of transparency and weak enforcement of international maritime legislation.
The Platform and international trade union organisations have repeatedly stated that the flag state system – and its so-called flags of convenience (FOC) – provides for legal loopholes and cheap disposal routes for the dumping of hazardous wastes. To counter concerns with lack of enforcement only relying on flag state implementation, proposals to introduce economic mechanisms such as port taxes or insurance schemes were initially supported by Commission expert reports. In the meeting with the NGOs the Commission was unable to justify why these proposals have not been included in the final regulatory proposal.
In the coming weeks, the Platform will produce a deeper analysis of the Commission proposal and will continue its advocacy work during the co-decision procedure in the European Council and the European Parliament.
Quelle: NGO Shipbreaking Platform
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Source: 23 March 2012

NGO warns EU Ship Recycling proposal will not stop the dumping of toxic ships:

Brussels, 22 March 2012 – A day before the European Commission presents its proposal for regulating the dismantling of toxic end-of-life ships, the NGO Shipbreaking Platform, a Brussels-based coalition of environmental, labour rights and human rights organisations was invited to meet European Environment Commissioner Janez Potočnik. During the meeting the Platform reiterated its call on Europe to stop the unjust practice of dumping toxic ships on the poorest communities of South Asia [1] and already identified important areas in the upcoming proposal that will need to be strengthened.
Since 2006, the NGO Shipbreaking Platform has actively called on European policy makers to find solutions that will improve enforcement of the current European Waste Shipment Regulation – a law that forbids the export of toxic ships to developing contries. Last week during a ship recycling conference in Singapore, the European Commission announced its intention to propose a new regulation on ship recycling, which will transpose the International Maritime Organisation’s Hong Kong Convention on Safe and Environmentally Sound Ship Recycling – and, at the same time, remove ships from the current European Waste Shipment Regulation. Today, Commissioner Potočnik informed the Platform that the new regulation will seek to regulate only ships sailing under a European flag. The Platform is concerned that the proposal, which will be published tomorrow, will do little to reverse the current trend of unsafe beach breaking with no care for waste management in developing countries.
“With no economic incentive to change current shipping and shipbreaking practices, and faced with the reality that there are few, and probably will be even less, European flagged ships at end-of-life, the Commission’s proposal effectively rids Europe of its responsibility – and opportunity – to provide a sustainable solution to stop toxic ships from poisoning workers and the environment in some of the world’s most vulnerable countries,” said Ingvild Jenssen, Director of the NGO Shipbreaking Platform.
The Platform believes that the Hong Kong Convention provides for weak grounds on which to settle a solid regulatory framework and therefore applauds the introduction of stricker requirements at the European level both with regards to clean ship building and environmentally sound ship dismantling. But, while the Commission claims that the upcoming European proposal goes beyond the Hong Kong Convention in taking a clear stance against the beach breaking method [2]and only allowing EU flagged vessels to be sold to recycling facilities approved by the EU, in reality these requirements will only affect a small number of ships. Whereas 40 percent of the world fleet is owned by European-based companies, only a small percentage is sailing under a European flag at end-of-life [3]. In 2011 almost two-thirds of all European-owned vessels sold for breaking in South Asia were registered under non-European flags. The majority of these flags, such as St Kitts and Nevis; the Bahamas; Comoros; and St Vincent and Grenadines, are well-known for sustaining substandard practices,their lack of transparency and weak enforcement of international maritime legislation.
The Platform and international trade union organisations have repeatedly stated that the flag state system – and its so-called flags of convenience (FOC) – provides for legal loopholes and cheap disposal routes for the dumping of hazardous wastes. To counter concerns with lack of enforcement only relying on flag state implementation, proposals to introduce economic mechanisms such as port taxes or insurance schemes were initially supported by Commission expert reports [4]. In today’s meeting with the NGOs the Commission was unable to justify why these proposals have not been included in the final regulatory proposal.
In the coming weeks, the Platform will produce a deeper analysis of the Commission proposal and will continue its advocacy work during the co-decision procedure in the European Council and the European Parliament.
Contact:
Ingvild Jenssen
Director
NGO Shipbreaking Platform
+32 (0) 485 190 920
Notes:
[1] 80 percent of the global end-of-life ships are broken in Bangladesh, Pakistan and India on tidal beaches whose soft sands cannot support crucial safety measures such as heavy lifting or emergency response equipment and which allow pollution to seep directly into the delicate coastal zone environment. No country in the developed world allows ships to be broken on their beaches. While shipbreaking can be done in a safe and clean way with proper technologies and infrastructure, and enforced regulations, most ship-owners choose to sell their ships for significantly greater profit to substandard yards operating in countries without adequate resources to provide safeguards and infrastructure to manage the dangerous business. On the South Asian shipbreaking beaches, vulnerable migrant workers, many of them children, break apart massive and toxic ships by hand, often without shoes, gloves, hard hats or masks to protect their lungs from asbestos, and poison fumes. The International Labour Organization (ILO) considers shipbreaking on beaches to be among the world’s most dangerous jobs.
[2]For more information on the four fatal flaws of the beaching method, see www.offthebeach.org
[3] Using data from shipping database IHS Fairplay DG Environment calculated that in 2009, 1.299 ships were sent for dismantling, out of which 349 (or 27 percent) were owned by European companies. The majority of these 27 percent were however registered under non- European flags: 252 out of 349 (72 percent). The proposed EU Regulation on ship recycling would only concern the remaining 28 percent of EU-flagged and EU-owned ships, adding also a smaller number of ships owned by non-European companies, but registered under an EU flag. Out of the 1.299 ships sent for breaking in 2009, 197 ships were sailing under a European flag (about 15 percent). It must also be taken into account that many of these vessels were dismantled under already acceptable conditions in the OECD.
[4] See Milieu/COWI for DG Environment ” Study in relation to options for new initiatives regarding dismantling of ships ” (October 2009) – Ship Dismantling Fund:
Source: NGO Shipbreaking Platform. 22 March 2012

23 March 2012

Shiptrade Servicves S.A. Weekly Demolition Report for WEEK 12 of 2012:

19th March – to 23rd March 2012 

Bangladesh  continued to have the same problems as in the previous week, however there seems to be a lively interest from a few interested buyers. 

India saw a number of deals being concluded during the previous week with reefers  and containers making an exciting entry and with levels showing some stability. 

Pakistan absorbed some of the tonnages going for India, traditionally of large sizes. 

Chinese market has been seen a increasing flow of tonnage and some buyers have started being selective both in vessels and levels indicated.

Source: Hellenic Shipping News. (Sourced from Shiptrade Servicves S.A.). 23 March 2012
http://hiweb.blob.core.windows.net/hellenicshippingnewsbody/pdf/Shiptrade%20Services%20SA%20+%20Intermodal/Week%2012.pdf

21 March 2012

GMS report on shipbreaking industry for WEEK 11 of 2012:

Indian sub continent buyers had been looking towards the results of the Indian budget this week with interest, fearing any great increase in import taxes could result in further falls in ship prices. The reality is that the budget passed without any overly dramatic tax increases (other titan an already anticipated 2% increase in excise duty), the results of which were a continuation of the status quo on current levels across the Indian sub cont.

Very few cash buyers were taking chances on Bangladesh, with prices differing by only some USD 25 to USD 30/LT LDT from China and waiting times double in Chittagong, there was little surprise in that, which likely contributed to the continued shoddy performance of the local market.

The number of vessels, although dwindling somewhat in recent weeks from the peak of January to February 2012 remained strong with a number of owners keen to sell given the right numbers.

The problem is that owner's expectations are currently miles away from a market under pressure from the sheer volume of vessels available. The recently dithered pricing might not reversr any time soon, especially with end buyers very much dictating the direction of prices, given the still abundant volume of tonnage.

Local fundamentals across the board actually remain relatively healthy with the recent currency crisis in the sub continent seemingly averted and steel prices continuing to impress. Whilst capacity should hold to absorb the market tonnage, the number of open and aggressive buyers with available finance is under question.

Indeed, with almost 60 vessels arriving into Alang alone in February 2012 and Bangladesh struggling to take delivery of under half that number of vessels since reopening at the start of the year, the pressure is beginning to fall very squarely on one or two markets to keep up the pace and perform as the tidal wave of tonnage persists.

For week 11 of 2012, GMS demo rankings for the week are as below:

CountryMarket SentimentGEN CARGO PricesTANKER Prices
IndiaWeakUSD460/lt ldtUSD 490/lt ldt
PakistanWeakUSD460/lt ldtUSD 490/lt ldt
BangladeshWeakUSD450/lt ldtUSD 480/lt ldt
ChinaBullishUSD415/lt ldtUSD 425/lt ldt

Source: Steel Guru. (Sourced from GMS Weekly). 21 March 2012
http://www.steelguru.com/international_news/GMS_report_on_ship_breaking_industry_for_WEEK_11_2012/255611.html