04 February 2014

GMS weekly report on China ship breaking industry for WEEK 05 of 2014:

The onset of Chinese New Year holidays on January 30th (with the obligatory huge fireworks display across the country) ushered in the Year of the Horse.
 
China will be off on holidays (with many returning from the big cities and the shipyards to their hometowns to be with their families) for the majority of next week thus business in the Far East is likely to be at a minimum.
 
State owners have announced to the stock exchange that a steady stream of Chinese flagged vessels of all types and sizes will be heading to the local recycling yards over the course of the year (eligible for the recently announced government subsidies), so it is set to be a prosperous year of the horse in both and North and South yards alike.
Source: steel guru. 4 February 2014

03 February 2014

PRESS RELEASE – NGOS PUBLISH 2013 LIST OF TOXIC SHIP DUMPERS: GERMAN AND GREEK SHIPPING COMPANIES AMONGST THE WORLD’S WORST

Brussels, 3 February 2014 – The NGO Shipbreaking Platform, a global coalition of organisations seeking to prevent dirty and dangerous shipbreaking practices worldwide, today published the complete list of ships that were dismantled around in the world  in 2013. Of the 1213 large ocean-going vessels that were scrapped in 2013, 645 were sold to substandard beaching facilities in India, Pakistan and Bangladesh [1]. Approximately 40% of these ships were EU-owned.  The new EU regulation on ship recycling entered into force on 30 December 2013. However, unless an economic incentive is added to it, the registration of European ships under flags of convenience will allow ship owners to sail around the new regulation and continue dumping their toxic ships in substandard facilities.

End-of-life vessels contain toxic materials such as asbestos, heavy metals, PCBs and organic waste within their structures. South Asia has become a preferred dumping ground as environmental, safety and labour rights standards are poorly enforced there.  Ship owners are able to sell their ships to the beach breakers for considerably greater profit than if they were sold to clean and safe recycling facilities.

“Whereas the number of dismantled ships remained nearly as high as in 2012, the number of beached ships dropped from 850 to 645 in 2013, representing a reduction of 24% from the previous year. More ship owners have opted for cleaner and safer solutions in 2013 compared to previous years – this is good news for the environment and the workers, and also for those ship recycling yards globally that have invested in better practices”, says Patrizia Heidegger, Executive Director of the NGO Shipbreaking Platform. “Still, the majority of ship owners uphold their dirty practices and European owners are amongst the worst.”

European ship owners sold a total of 372 large commercial vessels for breaking last year, of which 238, almost two thirds, ended up on a South Asian beach. Greece remains the worst European toxic ship dumper, closely followed by Germany. Owners in these countries disposed a record-high 80 percent of their end-of-life ships in India, Bangladesh and Pakistan, and included well-known companies such as Danaos and Euroseas (Greece), and Conti, Hapag-Lloyd and Leonhardt & Blumberg (Germany). Comparatively, Japanese owners sent 43% of their ships to South Asia, whilst Chinese owners in vast majority opted for nationally available ship recycling capacity [2]. Other European companies that have recurrently topped the lists of worst dumpers include Switzerland-based Mediterranean Shipping Company (MSC), with 9 ships dumped in India in 2013, and the Monaco-based Sammy Ofer Group, with 13 ships dumped in Bangladesh, Pakistan and India.

Once applicable, the new EU ship recycling regulation will ban the breaking of ships registered under the flag of an EU Member State in beaching yards and demand proper recycling in facilities that meet the requirements set out in the Regulation. However, the Regulation runs the risk of becoming a paper tiger: more than two thirds of the European ships dismantled in 2013 did not sail under the flag of an EU Member State when heading for a dismantling yard and would therefore not have been covered by the new Regulation. In addition to the ships already sailing under non-European flags during operational use, another 55 ships were flagged out from European registries just before scrapping outside the EU. Flags of convenience such as Comoros, Tuvalu, Saint Kitts and Nevis, Togo and Sierra Leone, that are less favoured during operational use, were excessively popular flags for the end-of-life vessels broken on beaches in 2013.

“Reflagging has always been a convenient way for ship owners to circumvent rules enforced by the flag states. The Platform and its members have been calling upon the EU to introduce an economic incentive to promote clean and safe ship recycling, because a Regulation based only on the voluntary registration under a European flag will not have the promised impact”, says Patrizia Heidegger.

Responsible European ship owners have meanwhile developed ship recycling policies. The Danish Maersk group, the world’s largest containership owner, was amongst the first to have an ambitious ship recycling policy and has so far lived up to it for those ships registered under its name. However, Maersk sold off three ships to Greek owner Diana Shipping and chartered the vessels back: all three were beached in 2013. The sale of old ships to a new owner while continuing to be the operator is a common way of avoiding responsibility at end-of-life, and it weakens Maersk’s efforts to be a global leader in green ship recycling. Best practice examples are Norwegian ship owners Grieg and Höegh Autoliners, who have proven to be serious about their environmental policies and have not beached vessels in 2013. Canada Steamship Lines (CSL) and Royal Dutch Boskalis went one step further and had their ships recycled within OECD countries only. Dutch company Van Oord, active in the dredging and offshore industry, has recently stated they will no longer beach any of their ships.

CONTACT

Patrizia Heidegger
Executive Director
+32 2 609 9419
patrizia@shipbreakingplatform.org

Ingvild Jenssen
Policy Advisor
+32 2 609 9420
ingvild@shipbreakingplatform.org



NOTES

[1] 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 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. It is also important to note that not all ships sold to modern ship recycling facilities were necessarily demolished in a safe and environmentally sound way. Beyond technology, a hazardous industry requires expertise and training, tight controls by the authorities, transparency and traceability of waste as well as independent trade unions.

[2] In 2013, China launched a three-year cash subsidy program for scrapping cargo ships and tankers. Chinese ship operators will receive a cash subsidy of 750 Yuan (91 euro) per gross ton for scrapping an older ship.



Source: Shipbreaking Platform. 

Shipbreaking sector ‘in good health’

Global: India continued to dominate a global shipbreaking industry that remained 'in good health' last year, according to French monitoring group Robin Des Bois.

Together with Pakistan and Bangladesh, India accounted for more than two-thirds of all business. Some 1119 vessels were scrapped in 2013 for a decline of 16% over the previous year while the volume of metal recycled fell 20% to around 9 million tonnes. 'But 2013 is still by far the second best year for the industry since 2006,' the analyst notes.

India headed the list of ships recycled with 343 vessels scrapped (26% of the market), followed by China on 239 (18%) and Bangladesh on 210 (16%). Turkey and Pakistan were responsible for scrapping 136 and 104 ships, respectively. In terms of metal recycled, India once again led the way on 2.8 million tonnes (31%), with Bangladesh on 2.3 million tonnes, China on 1.7 million tonnes and Pakistan on 1.4 million tonnes.

'The number of scrapped container ships is again on the rise,' Robin Des Bois points out. 'They accounted for 180 or 16% of all vessels demolished.' Among the other vessels scrapped, 387 were bulkers, 245 were cargo and 39 were ro-ro.

The report also points out that 'giants' are increasingly being sent for scrapping, with 39 ships measuring over 300 metres compared to 31 in 2012 and 24 in 2011. In line with a persistent trend, the age of scrapped vessels is still dropping - with 28 years the average in 2013.

Source: recycling international.  3 February 2014

01 February 2014

Forrestal To Depart Philadelphia for Scrapyard:

Forrestal

PHILADELPHIA — The decommissioned aircraft carrier Forrestal (AVT 59) is scheduled to begin its final voyage Feb. 4, weather permitting, when it will depart Philadelphia on its way to a ship dismantling and recycling facility in Brownsville, Texas, Naval Sea Systems Command announced in a Jan. 31 release.

The ship will be towed down the Delaware River, along the Eastern Seaboard, and across the Gulf of Mexico to arrive at the All Star Metals facility. The best opportunity for viewing the departure will be from publicly accessible areas along the Delaware River.

The Navy awarded a ship dismantling contract to All Star Metals of Brownsville on Oct. 22, and the company subcontracted with Foss Marine Towing to tow the ship to its final destination.

The first of the “supercarriers,” Forrestal was launched Dec. 11, 1954, by Newport News Shipbuilding and Drydock Co., and commissioned Sept. 29, 1955.

Forrestal was decommissioned Sept. 11, 1993, after more than 38 years of service. On June 16, 1999, the Navy announced the ship would be available for donation to an eligible organization for use as a museum or memorial. However, no viable applications were received and the vessel was removed from donation hold in December 2003 and redesignated for disposal.

In October, the Navy competitively awarded a contract to All Star Metals for the towing, dismantling and recycling of conventionally powered aircraft carriers. Under the terms of the contract, the company will be paid $0.01 for dismantling and recycling ex-USS Forrestal, which is the lowest price the Navy could possibly have paid the contractor for the work.

The Navy continues to own the ship until it has been fully dismantled. The contractor takes ownership of the scrap metal as it is produced and sells the scrap to offset its cost of operations.

Source: sea power magazine 31 January 2013

TradeWinds Ship Recycling Forum: 4-5 March 2014

Disposing of old vessels is on the agenda for many shipping companies as maintenance costs appear unviable and charterers look towards more fuel efficient tonnage. Whether your priority is to obtain the best price for your asset, opt for green recycling or try to combine the two, the TradeWinds Ship Recycling Forum provides you with the right contacts and practical guidance you need to successfully navigate the commercial, regulatory and public relations minefield.
Take advantage of the substantial discounted rate; register today and join other shipowners, operators, cash buyers, recyclers, demo / S&P brokers, lawyers, underwriters, NGOs, ship suppliers, ship registries, classification societies, charterers, financiers, government representatives in Singapore.
Why you should attend
    Get the inside track on scrap prices / asset values, whilst getting to know global leaders in ship recycling
    Find out where you can scrap your vessels legally and responsibly
    Learn how the EU Regulation is changing the scrapping landscape
    Find out what’s occurring on the waterfront in Bangladesh, India and Pakistan
    Find out how competition among cash buyers is causing concern
    Discover the future for Chinese ship recycling, post scrapping subsidy
    Get to grips with the latest environmental campaigns against beaching
    Understand and take advantage of the complex regulatory environment
    Understand the costs, risks and benefits of IHMs
 
Book your room
 We have rooms available at the PARKROYAL on Pickering at a cost of SGD320++/SGD 340++ per room per night (single/twin occupancy, inclusive of daily buffet breakfast and in-room WIFI). Rates are subject to 10% service charge and hereafter 7% GST. To make a reservation, please contact info@tradewindsevents.com
 
The Linkedin crowd
The active Ship Recycling Forum group on Linkedin is a great place to meet and engage with other professionals involved in all aspects of recycling and hazmat surveys. Join the group using this link to see what’s being said and discussed and offer your perspective.
Companies registered to attend include: AA Shipbreakers • Ace Exim Pte. Ltd. • Ace Ship Recycling • Agrasen Ship Breakers • Al Hamza Commodities • Al Salam Insurance Services • Alang Auto & General Eng • Alliance Sale & Purchase • Atam Manohar Ship Breakers • Bangladesh Ship Breakers Association • Best Oasis • Bharat Ship Breaker Corporation • Braemar Seascope • Canpak Marine & Trading Agency • Compass Maritime Services • Crown Steel • Dalkan Ship Breaking • Dux Ship Recycling & Brokerage • Dux Ship Recycling & Brokerage • EBM Shipbroking Limited • European Commission • FIMBank • Global Ship Trade • GMS • Gohilwad Ship Breaking • GSR Services • Gujarat Pollution Control Board • H. Clarkson & Co • Holman Fenwick Willan • Horizon • ICAP Shipping • International Chamber of Shipping • International Steel Corporation • J.R.D Industries • K.P.G. Enterprise • Kathiawar Steels • Lakshmi Steel Rolling Mills (Unit-II) • Lucion Marine • Mahadev Ship Breakers • Mahavir Group • Mideast Shipping & Trading • Mike Needham Shipbroking • Miller Insurance Services • NGO Shipbreaking Platform • Nippon Kaiji Kyokai (ClassNK) • NKD Maritime • Quest Marine - Dubai • R L Kalthia Ship Breaking • R.K.Industries (Unit-II) • Rai Metal Works • Rajendra Ship Breakers • Sachdeva Steel Products • Sagarlaxmi Ship Breakers • Samundra Alloys • Saumil Impex • Sea2Cradle • Ship Recycling Industries Association (India) • Shiv  Ship Breaking • Shiv Ship Corporation • Shree Ram Steel Rolling Ind.(Unit-II) • Shree Ram Vessel Scrap • Sok Denizcilik Ticaret • St Kitts & Nevis • Star Asia Shipbroking • Stena RoRo • Triveni Ship Breakers • van den poel | m.a.r.c. • Virendra & Co. • Wilhelmsen Ship Management • Wirana
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