Ship recycling slump persists

Shipowners are refraining from selling older bulkers for demolition despite the depressed freight market as there is no sign of scrap prices improving in the near term.

As imports of cheap Chinese steel continue to flood South Asia, prices for bulkers continue to hover at $390/ldt.

As a result, only bulkers with leftover bunkers or a full set of spare parts can command higher rates.

Bulk Shipping Lines' 1988-built Handysize bulker Green Field 1 was sold for $4,031,104 or $409/ldt for demolition in Bangladesh as the vessel had a full set of spares.

Greek broker Golden Destiny also reported that Marmaras Navigation's 1995-built Capesize bulker Martzoukos A fetched $8,347,080 or $420/ldt as it had 300 tonnes of leftover bunkers.

Dubai-based cash buyer Global Market Systems commented, "It is still tough to pin down end buyers for any significant length of time (such is the volatility in the market and speed with which minds are changing locally).

"Despite another dire week on dry chartering rates, the number of candidates has slowed this week (particularly on Capesize bulkers) as several owners seemed unwilling to cash in at the lower realities of today.

"With few signs of light to lift the recycling sector from its current predicament, the immediate market prospects therefore remain gloomy. Local governments will have to be more decisive in minimizing the effect the import of Chinese billets is having and need to promptly enforce the promised duties to bring about some greater stability."

Source: his maritime 360. 03 February 2015

http://www.ihsmaritime360.com/article/16494/ship-recycling-slump-persists

Where Giant Cargo Ships Go to Die

The shipbreakers in Bangladesh

Watch the video online:

http://www.vice.com/video/bangladeshi-shipbreakers-815 

There aren't too many places left in the world where the practice of ship breaking—scrapping old ships for metal—can still exist. These days, environmental and labor regulations in the developed world have displaced the practice to India, Bangladesh, and Pakistan, where cargo carriers are salvaged for their steel.

The largest vessels wind up on the shores of the city of Chittagong in Bangladesh, where the industry has become a vital part of the country's urbanization. It employs roughly 200,000 workers and supplies the country with 80 percent of its steel. Ship breakers beach and dismantle vessels daily wearing flip­-flops and T-shirts. It's no easy task, considering ships are constructed to withstand the elements for the 30 years they spend operating on international waters. We decided to check it out.

Veteran bulkers dominate demolition market

The scrap market for bulkers remains active both for capesize and panamax tonnage, with the scene dominated by 1990s-built units.

Greek owner Dianik Bross has sold the 65,000-dwt panamax bulker Steel Titan (built 1991) with options to the Indian subcontinent for $422 per ldt, or $5m — slightly more than the $4.9m the company paid for the ship as Hellenic Sea in July 2012.

It is the oldest vessel in the company’s five-strong fleet, which consists of bulkers built between 1991 and 2002.

The low-key outfit aims to grow its fleet with more modern ships and it now appears it was the buyer of the 51,000-dwt Evian (renamed Steel Courage, built 2002), which was sold to a Greek buyer for $12.5m in March last year.

In the panamax segment, Royal Marine Shipmanagement of Singapore has sold the 75,000-dwt Dal Va (built 1994) to Pakistan, where it is likely to have fetched $4.7m.

The owner bought the ship as Jindal Varad as late as September last year for $5.8m.

US-listed Star Bulk Carriers has sold the 69,000-dwt Star Tatianna (built 1993) for demolition, probably for around $4m. Last month, it sold the 70,000-dwt bulker Star Julia (built 1994) for scrap.

These sales mean at least nine panamax bulkers have been sold for demolition so far this year.

Meanwhile, India’s Salgaocar has sold the last ship in its fleet, the 90,800-dwt mini-capesize India Coal Maru (built 1995), for recycling in Bangladesh for $396 per ldt, or $5.8m.

This disposal means at least nine capesizes have been sold for scrap so far this year.

In the tanker sector, the over-aged, 74,000-dwt floating, production, storage and offloading (FPSO) unit Banio (built 1961) has been sold. It had been in the fleet of Shell and was expected to arrive at Alang, India, this week.

Source:  trade winds.

http://www.tradewindsnews.com/weekly/article353801.ece5  

Ship suspected of carrying radioactive waste cleared, to be dismantled in Turkey:

Kuito was examined by Turkish inspectors and will be dismantled in İzmir. (Photo: DHA)

Turkish authorities have cleared a ship that was suspected of carrying radioactive waste and it is on its way to the Turkish coast for destruction.

Turkey's Chamber of Environmental Engineers warned last week that a ship laden with radioactive material and waste had recently left Angola and was approaching an Aegean port in the province of İzmir, saying that the ship is dangerous and should be intercepted before entering Turkish waters.

The ship, called Kuito, had once been used to refine petroleum and will dock in the Port of Aliağa for demolition. The chamber said the ship could refine 100,000 tons of petroleum and therefore has a high level of radioactive waste and hazardous material on board.

At the request of environmentalists, Turkish authorities intercepted the ship six miles off the Turkish coast for an inspection.

Inspectors from the Turkish Atomic Energy Agency and the İzmir Environmental Directorate examined the ship on Wednesday and concluded that it contains no hazardous material.

The ship will be dismantled at İzmir's Aliağa demolition center, which has become a hub for ship demolition.

Source: today’s zaman. 5 February 2015

http://www.todayszaman.com/national_ship-suspected-of-being-hazardous-cleared-to-be-dismantled-in-turkey_371864.html

South Asia's ship recyclers unite in face of possible EU beaching ban:

The inaugural meeting of the Federation of Ship Recycling Associations (FSRA), a collective of the ship recycling associations of India, Pakistan and Bangladesh will take place at the TradeWinds Ship Recycling Forum in Singapore on 10-11th March.

Although traditionally competitors, the group is coming together in the face of a possible ban on EU flag vessels being sent to South Asia for demolition.

Representatives of the European Commission presented their position to attendees during a private meeting of ship recycling stakeholders organised by the European Community Shipowners’ Association (ECSA) recently to discuss the interpretation of the new European Regulation (ER).

According to insiders, Emilien Gasc of the EC Directorate-General for Environment was pressed to clarify the EC position but declined to concede that the wording of the ER implied an outright ban on beaching despite apparently unambiguous references to approved recycling yards requiring ‘built structures’ and ‘impermeable flooring’.

A more clear-cut position was taken by Greece’s permanent representative to the EU, Petros Varelidis, who had been instrumental in drafting the regulation wording. He argued that the ER does not ban beaching and that its purpose is to support the IMO's Hong Kong Convention and stimulate improvements in safety and environmental practices in South Asian yards.

Delegates at TradeWinds Ship Recycling Forum 2015 in Singapore will be looking for clarity on the topic from a keynote presentation by EC Director for Green Economy, Kęstutis Sadauskas.

Shiprecyclers from India, Pakistan and Bangladesh are now wondering whether current and planned investments to improve their facilities will ever pay dividends now that winning a place on the EU-approved list of recycling facilities appears remote.

Speaking about the FRSA gathering in Singapore, Ship Recycling Industries Association India (SRIA India) Hon. Secretary, Nitin Kanakiya said, “The FSRA was initially conceived in 2010 and has informally played important role in uniting recyclers from India, Pakistan and Bangladesh. We feel that now is the time to come together on a more formal basis in the face of persistent and unjust treatment by pressure groups and officials at the European Commission.”

He added, “The FSRA will be represented in full strength at the TradeWinds Forum by recyclers from India, Pakistan and Bangladesh, Singapore offering easy access to all three countries. Our focus this year will be on the common issues which unite us in protest against the potential ban on beaching.”

Forum organiser Jon Chaplin commented, ‘Ship recyclers from South Asia have supported the Forum since its inception in 2009 and we are excited to see this initiative developing.’

Underlining the importance of the Forum to the industry, principal sponsor Rakesh 'Billu' Khetan, CEO of WIRANA SHIPPING is on record saying, "This is the premier ship recycling event globally and it plays a pivotal role in shaping the future of the entire ship recycling industry and is not to be missed. We are delighted to be supporting the Forum once again and look forward to welcoming everyone to Singapore."

The TradeWinds Ship Recycling Forum is an annual event and sponsored by WIRANA SHIPPING, Class NK, Al Salam Insurance, St Kitts & Nevis, Lucion Marine, the International Hazmat Association and Wilhelmsen Ship Management. It has the official support of VDR German Shipowners’ Association, Norges Rederiforbund Norwegian Shipowners’ Association and the Asian Shipowners’ Forum. The event is supported locally by Singapore’s MPA backed MCF Training Grant.

Source: My News Desk. 03 February 2015

http://www.mynewsdesk.com/uk/tradewinds-events/pressreleases/south-asia-s-ship-recyclers-unite-in-face-of-possible-eu-beaching-ban-1111787?utm_campaign=send_list&utm_medium=email&utm_source=sendgrid