27 April 2015

Ship recycling is ‘most misunderstood’ industry:

Ship recycling is one of the most misunderstood industries in the world, according to the CEO of GMS, one of the world’s largest ship traders, Anil Sharma.

“The industry is seen in a very negative light but it is actually a very green one. It is responsible recycling,” he said, noting that 98 per cent of a ship was recycled.

Nighty-eight per cent of a ship can be recycled.

Around 95 per cent of ship recycling is done in Asia, mostly because this is where the greatest demand for the scrap metal is. The concentration of facilities has created an entire infrastructure for recycling, with teams descending on the vessels to buy everything from the metal to the copper cables, and from bedding to cleaning supplies.

He acknowledged that there were bad yards, with the practice of scrap­ping ships on beaches frown­ed upon by serious operators.

Ship recycling, a $3 billion industry, grown in recent years, with 666 ships scrapped – 34 million DWT – compared with just 133 new builds.

There are some yards in Europe that recycle ships, mainly in Turkey, Dr Sharma said, and although shipyards could easily convert from building to scrapping, the industry could not work in isolation.

“There is considerable demand for scrap metal in Turkey but Malta would find it hard to compete with yards there as the labour costs here would be higher, and you would also need to ship the scrap,” he said.

Dr Sharma was one of the high-profile speakers at the first Mare Forum held at the Grand Hotel Excelsior, Floriana, last week, that attracted an international gathering of representatives from shipping, commodities and oil and gas, as well as marine/maritime issues.

Transport Minister Joe Mizzi said the government supported such initiatives as Malta had the natural potential to become a leading mari­time centre in the Mediterranean.

“I will not make apologies for being ambitious. I want Malta to be recognised as one of the most important maritime centres in the world and spread the word that we’re not just open for maritime business but that we will scout relentlessly for new business around the globe,” he said.

“My first frustration is simply that we do not shout about our maritime industry enough. Considering its influence and importance, it has an unaccountably low public profile. When was the last time you read a story about our maritime industry on the front page of your paper?

“If one asks me where we can find the future of a flourishing Mediterranean maritime industry, my answer is clear – in our schools and universities. One of the best ways we can secure the future is to invest in skills and training. As a former seafarer, one can expect that this subject is very close to my heart. A successful and sustainable industry needs the right people, with the right skills and rewarding careers paths to attract new entrants.

“We can all be stronger through opportunities grasped by those whose competencies reinforce our competitiveness. Skills are clearly integral to the maritime sector’s future but the sector also needs a stable business and fiscal environment if it wants to grow.”

The event was organised by Mare Forum in conjunction with GM International Services, whose chairman John Gauci-Maistre also referred to the efforts of states like Malta and Italy and private entities, which have put aside commercial interests, at a great cost, to carry out migrant rescue operations.

Source: times of india. 26 April 2015

26 April 2015

Platform News - NGO Shipbreaking Platform Works Hand in Hand with Dutch Ship Owner Boskalis for Sustainable Ship Recycling in Mexico

Best practice example for clean and safe ship recycling an inspiration for responsible owners

Brussels, 16 April 2015 – NGO Shipbreaking Platform board member Merijn Hougee has collaborated with Dutch dredging and marine expert Boskalis over several months to develop a comprehensive ship recycling policy. Boskalis has decided for clean and safe dismantling of its obsolete fleet in a Mexican ship recycling facility with which the ship owner has established a close partnership. Boskalis, which has been recognized by the NGO Shipbreaking Platform as an industry leader, reported about its progress in its Corporate Social Responsibility (CSR) report 2014.

“This is a best practice example”, says Patrizia Heidegger, Executive Director of the NGO Shipbreaking Platform. “Boskalis has shown how a ship owner can quickly improve ship recycling practices by taking the matter in one’s own hands. Other shipping companies should follow suit. We hope Boskalis will continue to lead by example and live up to the standards they have set for themselves. We are looking forward to continued collaboration and welcome further proposals by other shipping companies looking to improve their practices.”

According to NGO Shipbreaking Platform board member Merijn Hougee, Boskalis’ approach to dismantling is a testimony to how serious the company is about applying the international conventions to its recycling activities.

“The Boskalis technical superintendents on site showed passionate commitment to the clean and safe recycling of the vessels,” he says. “They took abstract principles and turned them into practical applications and invested time to find a dry-dock facility on the other side of the world which clearly has the potential to meet the highest international standards. I encourage Boskalis to keep sharing their knowledge to help the yard progress and to communicate transparently about their recycling practices since this sets a positive example in the maritime industry. Ultimately, this approach will help to transform a historically ‘dirty’ shipbreaking industry into a recycling industry with a positive image.”


Case study

When the need arose for the sustainable dismantling of three dredgers in Mexico, Boskalis found a local yard that was willing to change its working methods in order to meet Boskalis’ strict requirements for clean and safe ship recycling. At first, Boskalis could not find a suitable yard on the Pacific coast of the American continent which was ready to dismantle a ship in a sustainable way in line with the Hong Kong Convention and Boskalis’ own standards. The dilemma was shared with the NGO Shipbreaking Platform, and it was decided that Boskalis would seek a yard that had the potential to become compliant with Boskalis’ standards. After visiting several possible yards, ISP/Amaya Curiel yard located in Ensenada on the Baja peninsula was chosen by Boskalis’ local experts.

“Our yard was only two years old when we were approached by Boskalis in 2013 to dismantle their vessels,” says Roberto Curiel, owner of ISP/Amaya Curiel. “We were interested in new opportunities and were willing to make improvements. The first prerequisite for Boskalis was that the yard had to have a large hard surface. We already had a concrete dry dock for repairs. The second requirement was that the yard had to be willing to allow Boskalis experts to supervise the dismantling process.”

An independent audit was instructed by Boskalis and was carried out by classification society Germanischer Lloyd. Subsequently, in 2014 the pilot project to dismantle the ships “Para” and the “Mercurius” was carried out. Based on the lessons learned from these two vessels, the dismantling procedures were further improved.

In December 2014, during the scrapping of the cutter suction dredger “Amstel”, Merijn Hougee, a board member of the NGO Shipbreaking Platform, visited the yard with representatives from Boskalis and met with yard owner Roberto Curiel and experts from the University of Baja California.

“A thorough preparation of a vessel is critical to sustainable dismantling,” says Alberto Prado, Fleet Manager at Boskalis. “No one knows our equipment better than Boskalis and by sharing the know-how we contribute to the success of the dismantling. As a standard policy, we make an Inventory of Hazardous Materials (IHM) on all vessels. In the case of the Amstel, we also decided to remove hazardous materials ourselves and cleaned all the oil and fuel tanks before the ship was towed to Ensenada. We also removed parts from the vessel that could be reused on other ships within the Boskalis fleet. Once the ship was in dock, we had two of our own technical superintendents on site to monitor the progress. During this time, we made suggestions on how the dismantling could be improved which frequently was of a procedural nature.”

Roberto Curiel explains: “Boskalis wanted third party certification of the work. Although we are used to working with certification from local authorities, the Boskalis demands were stricter. As a result, scientists from the Marine Science department at the University of Baja California were brought in to monitor air, water and soil quality and the disposal of hazardous materials.”

Boskalis also sent two engineers to supervise the work.

“They were very dedicated and had a high regard for compliance with international principles,” comments Roberto Curiel. “Sometimes in the beginning that was stressful for our employees. But the Boskalis people were willing to discuss and explain why certain things had to be done. These discussions were constructive. Working with Boskalis has raised our awareness about the environment. It gave us the experience to work in a different, more responsible way. The whole world is moving in the direction of environmental responsibility. We want to be in the forefront in our country. I see the industry going in that direction over time, with more oversight and restrictions, and that is how it should be. Boskalis gave us the opportunity to improve our operations by sharing their knowledge and showing us what is going on in the wider world.”

Martijn Schuttevaer, Director Corporate Communications at Boskalis, adds: “When we decided to have our vessels dismantled at the Amaya Curiel yard, we knew that the yard did not meet all of our requirements. The decisive factor was the potential of the yard and the commitment from the owner. I am pleased we were able to share what we accomplished in Mexico with the NGO Shipbreaking Platform.”


CONTACT US
Patrizia Heidegger
Executive Director of the NGO Shipbreaking Platform

London to host Ship Recycling Conference 2015:

United Kingdom: This year's Ship Recycling Conference will be held from 16-17 June in the UK capital of London.

The event will provide a platform to exchange and discuss strategies to both improve safety and maximise profit in today's evolving industry. 'Delegates will receive the most up-to-date information on regulatory changes and commercial processes at our only annual conference on ship recycling in Europe,' notes the organiser Informa Maritime Events.

Attending will certainly be worth it, says Informa Maritime Events; the conference includes a task force panel to get industry players up to speed on an array of hot topics. These include; the implementation and enforcement of health and safety standards; a news bulleting on the approved European List of ship recycling facilities; plus an interview with Hapag-Lloyd specialists on why they chose to adopt a green ship recycling policy.

The popular event is said to attract a network with 70+ ship owners, regulators, NGOs and ship breakers actively working towards safer and more efficient recycling practices. Those not yet registered can quote VIP code FKT2932RINL to save £100.

For more information, visit:

Source: recycling international. 21 April 2015
http://www.recyclinginternational.com/recycling-news/8712/business/united-kingdom/london-host-ship-recycling-conference-2015

Infrastructure push: Indian yards to demolish vessels to increase scrapped metal supply

SINGAPORE: Indian yards will demolish a number of vessels as it needs to increase supply of scrapped metal for the country's infrastructure development programmes.

The shipping market is weak and it is wise to replace older and inefficient vessels, said delegates at SeaAsia, a three-day conference and exhibition held at April 21-23 in Singapore.

"Indian yards are likely to scrap much higher number vessels than about 350 scrapped in 2014," said Zafer Gungor, ship repair and conversion manager at Sefine Shipyard which is building five new ships this year.

India will benefit from the large volume of ship demolition as it needs to increase supply of scrapped metal for melting into steel and meet massive demand for iron and steel products from the infrastructure development programmes announced by the government.

Comparatively, Turkish yards are expected to demolish about 500 ships, but most of these would be of smaller sizes with lower deadweight tonnage, Zafer said.

Shipbreaking yards at Alan, in Gujarat, have already demolished or were demolishing 107 ships in the first four months of this year, according to Deven Jagad, proprietor of the Bhavnagar-based Mahadev Corporation Shipping and Marine Supplier which markets second hand ship machinery.

Ship demolition at Alan yards more than doubled in 2014 from 150 in 2010, added Aarchi Marine Services' Tarik Wala, who also markets reconditioned ship machineries at Bhavnagar.

"We expect Alan yards to break 330-350 ships this year," Jagan," said Jagan.

But outsiders are putting the number higher, given ship-owners urgency to reduce the number of idle floaters for cost reasons.

Ship-owners and managers agreed with the high level of ships being put out of services due to gloomy demand and the ongoing slide in chartering and cargo rates.

In the past, China had topped the list of ship-breakers, as it was then to build scrap capacity for developing infrastructure prior to the 2008 Olympics in Beijing.

But now the Chinese are not that aggressive in sourcing vessels for breaking as they have excessive supply of steel from domestic mills.

For the Indians, though the authorities have listed out some labour safety and pollution rules, ship-breaking is an important source of building inventory of scrapped metal, according to a mill-based source at the conference.

Source: economic times. 24 April 2015
http://economictimes.indiatimes.com/industry/transportation/shipping-/-transport/infrastructure-push-indian-yards-to-demolish-vessels-to-increase-scrapped-metal-supply/articleshow/47035161.cms

IMO and Bangladesh Review Shipbreaking Industry:

shipbreaking in Bangladesh

The IMO and the government of the People’s Republic of Bangladesh are jointly implementing a project entitled “Safe and Environmentally Sound Ship Recycling in Bangladesh – Phase I” (in short SENSREC Project – Bangladesh).

The project, aimed at improving the safety and environmental standards within the country’s ship-recycling industry, consists of five work packages covering:

•    Two studies assessing the economic and environmental impact of the ship recycling industry in Bangladesh;
•    An assessment of the prevailing conditions and needs for environmentally sound hazardous waste management, including the compilation of a hazardous waste inventory, hazardous waste assessment report and the preliminary infrastructure design and site selection for a hazardous waste storage, treatment and disposal facility;
•    Recommendations on strengthening the government’s one-stop service, in which all the various ministries with a responsibility for ship recycling (e.g. industries, environment, labor, shipping) offer a single point of contact for related matters;
•    A review and upgrade of existing training courses on occupational health, safety and environmental issues and piloting of the new training material; and
•    The development of a detailed project document for a possible follow-up project to implement the recommendations of phase I.

In the long term, the project will assist the industry to eventually meet the requirements of the Hong Kong International Convention on the Safe and Environmentally Sound Recycling of Ships, 2009 (the Hong Kong Convention), so that the government of Bangladesh may be in a position to accede to the Convention.

The principal funding for the project comes from the Norwegian Agency for Development Cooperation (Norad), while the Secretariat of the Basel, Rotterdam and Stockholm Conventions (BRS) also supports the project having mobilized some EU funding towards the work package related to the management of hazardous materials, which is partly being implemented by BRS.

The project is expected to be managed within a budget of $1,516,275 commencing January 2015 (phase I) for a period of 18 months. This amount includes the BRS funds of $273,603.

The project is being executed by the Marine Environment Division of IMO, in partnership with the Ministry of Industries of Bangladesh. The Bangladeshi Ministry coordinates the input from the different stakeholder ministries within the country, while IMO also collaborates with other relevant UN agencies including BRS, the International Labour Organization (ILO) and the United Nations Industrial Development Organization (UNIDO) to ensure the successful delivery of the project.

IMO, the government of Bangladesh, Norad, and BRS have been working towards the establishment of this project for a number of years. It demonstrates a major commitment from the government of Bangladesh to improve safety and environmental standards within this vital industry, said IMO in a statement.

Source: maritime executive. 24 April 2015
http://www.maritime-executive.com/article/imo-and-bangladesh-review-shipbreaking-industry

17 April 2015

Dutch ship owner Boskalis: Best practice example for clean ship recycling, says NGO


Brussels — NGO Shipbreaking Platform board member Merijn Hougee has collaborated with Dutch dredging and marine expert Boskalis over several months to develop a comprehensive ship recycling policy. Boskalis has decided for clean and safe dismantling of its obsolete fleet in a Mexican ship recycling facility with which the ship owner has established a close partnership. Boskalis, which has been recognized by the NGO Shipbreaking Platform as an industry leader, reported about its progress in its Corporate Social Responsibility report 2014.

“This is a best practice example”, says Patrizia Heidegger, Executive Director of the NGO Shipbreaking Platform. “Boskalis has shown how a ship owner can quickly improve ship recycling practices by taking the matter in one’s own hands. Other shipping companies should follow suit. We hope Boskalis will continue to lead by example and live up to the standards they have set for themselves. We are looking forward to continued collaboration and welcome further proposals by other shipping companies looking to improve their practices.”

“The Boskalis technical superintendents on site showed passionate commitment to the clean and safe recycling of the vessels,” judged Merijn Hougee. “They took abstract principles and turned them into practical applications and invested time to find a dry-dock facility on the other side of the world which clearly has the potential to meet the highest international standards. I encourage Boskalis to keep sharing their knowledge to help the yard progress and to communicate transparently about their recycling practices since this sets a positive example in the maritime industry. Ultimately, this approach will help to transform a historically ‘dirty’ shipbreaking industry into a recycling industry with a positive image.”

Case study: In search of a suitable ship recycling yard

When the need arose for the sustainable dismantling of three dredgers in Mexico, Boskalis found a local yard that was willing to change its working methods in order to meet Boskalis’ strict requirements for clean and safe ship recycling. At first, Boskalis could not find a suitable yard on the Pacific coast of the American continent which was ready to dismantle a ship in a sustainable way in line with the Hong Kong Convention and Boskalis’ own standards. The dilemma was shared with the NGO Shipbreaking Platform, and it was decided that Boskalis would seek a yard that had the potential to become compliant with Boskalis’ standards. After visiting several possible yards, ISP/Amaya Curiel yard located in Ensenada on the Baja peninsula was chosen by Boskalis’ local experts.

“Our yard was only two years old when we were approached by Boskalis in 2013 to dismantle their vessels,” says Roberto Curiel, owner of ISP/Amaya Curiel. “We were interested in new opportunities and were willing to make improvements. The first prerequisite for Boskalis was that the yard had to have a large hard surface. We already had a concrete dry dock for repairs. The second requirement was that the yard had to be willing to allow Boskalis experts to supervise the dismantling process.”

Case study: Independent audit and meeting

An independent audit was instructed by Boskalis and was carried out by classification society Germanischer Lloyd. Subsequently, in 2014 the pilot project to dismantle the ships “Para” and the “Mercurius” was carried out. Based on the lessons learned from these two vessels, the dismantling procedures were further improved.

In December 2014, during the scrapping of the cutter suction dredger “Amstel”, Merijn Hougee, a board member of the NGO Shipbreaking Platform, visited the yard with representatives from Boskalis and met with yard owner Roberto Curiel and experts from the University of Baja California.

Case study: Inventory of hazardous materials and re-use materials

“A thorough preparation of a vessel is critical to sustainable dismantling,” says Alberto Prado, Fleet Manager at Boskalis. “No one knows our equipment better than Boskalis and by sharing the know-how we contribute to the success of the dismantling. As a standard policy, we make an Inventory of Hazardous Materials (IHM) on all vessels. In the case of the Amstel, we also decided to remove hazardous materials ourselves and cleaned all the oil and fuel tanks before the ship was towed to Ensenada. We also removed parts from the vessel that could be reused on other ships within the Boskalis fleet. Once the ship was in dock, we had two of our own technical superintendents on site to monitor the progress. During this time, we made suggestions on how the dismantling could be improved which frequently was of a procedural nature.”

Yard owner Roberto Curiel explains: “Boskalis wanted third party certification of the work. Although we are used to working with certification from local authorities, the Boskalis demands were stricter. As a result, scientists from the Marine Science department at the University of Baja California were brought in to monitor air, water and soil quality and the disposal of hazardous materials.” Boskalis also sent two engineers to supervise the work.

Case study: Moving towards environmental responsibility

“They were very dedicated and had a high regard for compliance with international principles,” comments Roberto Curiel. “Sometimes in the beginning that was stressful for our employees. But the Boskalis people were willing to discuss and explain why certain things had to be done. These discussions were constructive. Working with Boskalis has raised our awareness about the environment. It gave us the experience to work in a different, more responsible way. The whole world is moving in the direction of environmental responsibility. We want to be in the forefront in our country. I see the industry going in that direction over time, with more oversight and restrictions, and that is how it should be. Boskalis gave us the opportunity to improve our operations by sharing their knowledge and showing us what is going on in the wider world.”

Martijn Schuttevaer, Director Corporate Communications at Boskalis, adds: “When we decided to have our vessels dismantled at the Amaya Curiel yard, we knew that the yard did not meet all of our requirements. The decisive factor was the potential of the yard and the commitment from the owner. I am pleased we were able to share what we accomplished in Mexico with the NGO Shipbreaking Platform.”

Source: recycling portal. 17 April 2015

BOSKALIS WORKING WITH NGO ON SAFE SHIP RECYCLING:

NGO Shipbreaking Platform board member Merijn Hougee has collaborated with Dutch dredging and marine company Boskalis over several months to develop a comprehensive ship recycling policy.

Boskalis has decided for clean and safe dismantling of its obsolete fleet in a Mexican ship recycling facility with which the ship owner has established a close partnership. Boskalis, which has been recognized by the NGO Shipbreaking Platform as an industry leader, reported about its progress in its Corporate Social Responsibility (CSR) report 2014.

“This is a best practice example”, says Patrizia Heidegger, Executive Director of the NGO Shipbreaking Platform. “Boskalis has shown how a ship owner can quickly improve ship recycling practices by taking the matter in one’s own hands. Other shipping companies should follow suit. We hope Boskalis will continue to lead by example and live up to the standards they have set for themselves. We are looking forward to continued collaboration and welcome further proposals by other shipping companies looking to improve their practices.”

According to NGO Shipbreaking Platform board member Merijn Hougee, Boskalis’ approach to dismantling is a testimony to how serious the company is about applying the international conventions to its recycling activities.

“The Boskalis technical superintendents on site showed passionate commitment to the clean and safe recycling of the vessels,” he says. “They took abstract principles and turned them into practical applications and invested time to find a dry-dock facility on the other side of the world which clearly has the potential to meet the highest international standards. I encourage Boskalis to keep sharing their knowledge to help the yard progress and to communicate transparently about their recycling practices since this sets a positive example in the maritime industry. Ultimately, this approach will help to transform a historically ‘dirty’ shipbreaking industry into a recycling industry with a positive image.”

When the need arose for the sustainable dismantling of three dredgers in Mexico, Boskalis found a local yard that was willing to change its working methods in order to meet Boskalis’ strict requirements for clean and safe ship recycling.

At first, Boskalis could not find a suitable yard on the Pacific coast of the American continent which was ready to dismantle a ship in a sustainable way in line with the Hong Kong Convention and Boskalis’ own standards. The dilemma was shared with the NGO Shipbreaking Platform, and it was decided that Boskalis would seek a yard that had the potential to become compliant with Boskalis’ standards. After visiting several possible yards, ISP/Amaya Curiel yard located in Ensenada on the Baja peninsula was chosen by Boskalis’ local experts.

“Our yard was only two years old when we were approached by Boskalis in 2013 to dismantle their vessels,” says Roberto Curiel, owner of ISP/Amaya Curiel. “We were interested in new opportunities and were willing to make improvements. The first prerequisite for Boskalis was that the yard had to have a large hard surface. We already had a concrete dry dock for repairs. The second requirement was that the yard had to be willing to allow Boskalis experts to supervise the dismantling process.”

An independent audit was instructed by Boskalis and was carried out by classification society Germanischer Lloyd. Subsequently, in 2014 the pilot project to dismantle the ships “Para” and the “Mercurius” was carried out. Based on the lessons learned from these two vessels, the dismantling procedures were further improved.

In December 2014, during the scrapping of the cutter suction dredger “Amstel”, Merijn Hougee, a board member of the NGO Shipbreaking Platform, visited the yard with representatives from Boskalis and met with yard owner Roberto Curiel and experts from the University of Baja California.

“A thorough preparation of a vessel is critical to sustainable dismantling,” says Alberto Prado, Fleet Manager at Boskalis. “No one knows our equipment better than Boskalis and by sharing the know-how we contribute to the success of the dismantling. As a standard policy, we make an Inventory of Hazardous Materials (IHM) on all vessels. In the case of the Amstel, we also decided to remove hazardous materials ourselves and cleaned all the oil and fuel tanks before the ship was towed to Ensenada. We also removed parts from the vessel that could be reused on other ships within the Boskalis fleet. Once the ship was in dock, we had two of our own technical superintendents on site to monitor the progress. During this time, we made suggestions on how the dismantling could be improved which frequently was of a procedural nature.”

Roberto Curiel explains: “Boskalis wanted third party certification of the work. Although we are used to working with certification from local authorities, the Boskalis demands were stricter. As a result, scientists from the Marine Science department at the University of Baja California were brought in to monitor air, water and soil quality and the disposal of hazardous materials.”

Boskalis also sent two engineers to supervise the work. “They were very dedicated and had a high regard for compliance with international principles,” comments Roberto Curiel. “Sometimes in the beginning that was stressful for our employees. But the Boskalis people were willing to discuss and explain why certain things had to be done. These discussions were constructive. Working with Boskalis has raised our awareness about the environment. It gave us the experience to work in a different, more responsible way.

"The whole world is moving in the direction of environmental responsibility. We want to be in the forefront in our country. I see the industry going in that direction over time, with more oversight and restrictions, and that is how it should be. Boskalis gave us the opportunity to improve our operations by sharing their knowledge and showing us what is going on in the wider world.”

Martijn Schuttevaer, Director Corporate Communications at Boskalis, adds: “When we decided to have our vessels dismantled at the Amaya Curiel yard, we knew that the yard did not meet all of our requirements. The decisive factor was the potential of the yard and the commitment from the owner. I am pleased we were able to share what we accomplished in Mexico with the NGO Shipbreaking Platform.”

Source: sand and gravel. 17 April 2015
http://www.sandandgravel.com/news/article.asp?v1=19510

16 April 2015

Ship scrap prices to drop again as monsoon season nears:

Although prices in South Asia's ship recycling markets maintained last week's levels, cash buyers predict levels to regress again as the monsoon season nears.

In addition, Bangladeshi buyers have committed themselves to a number of Capesize bulkers and are not inclined to buy more ships.

Prices in Bangladesh remained at USD385 per ldt for bulkers and USD410 per ldt for tankers, compared with USD380 per ldt and USD400 per ldt, respectively, three weeks ago.

Angelicoussis-controlled Anangel Shipping Enterprises, having recycled at least two Capesizes, sold another Capesize for scrap, offloading 1993-built Anangel Splendour for USD8.03 million or USD413/ldt for recycling in Bangladesh.

Prices in India trailed levels in Bangladesh by USD5 per ldt, while bulkers and tankers are going for USD375 per ldt and USD400 per ldt respectively in Pakistan.

Cash buyer Global Marketing Systems said, "Monsoon season is also on the horizon in the sub-continent - those vessels set to deliver in May will be the last batch before continuous rains start from June (usually lasting until early September). Prices too, tend to be cooler over this period of time as the labour force returns to their hometowns as the seasonal rains hamper cutting activities."

With the Eastern Orthodox Christians celebrating Easter over 12 April, Greek shipowners did not execute many transactions as well.

Dubai-based cash buyer Global Marketing Systems said, "It is very much expected that prices will soften further in the coming weeks, with the recent short spike just experienced based mostly on cash buyer speculation."

Indian buyers continue to pay good money for their preferred container ships.

Tsakos-controlled 1992-built container Hanjin Elizabeth was concluded for USD8.33 million or a phenomenal USD441/ldt on an 'as is' basis in Fujairah with about 350 tonnes of bunkers, which is more than enough for the voyage to India.

GMS remarked, "It certainly seems that for favoured vessels, Indian buyers are prepared to offer over and above market just to secure the unit - such is demand and capacity at present."

The one sale into Pakistan last week was Odysea Carriers' 1987-built Panamax bulker Evrialos, which was sold for USD4.10 million or a decent USD407/ldt. However, the shipowner has an option to sell into India should that market pay better.

Source: ihs maritime360.14 April 2015

15 April 2015

Ship recycling legislation not a solution:

The legislation meant to regulate ship recycling practices, in particular the EU Ship Recycling Regulation and the International Maritime Organisation's Hong Kong Convention, mainly based on flag state jurisdiction will neither be able to solve the problems of substandard shipbreaking nor enforce the polluter pays principle on ship owners, the NGO Shipbreaking Platform stressed.

The NGO Shipbreaking Platform published a briefing paper titled What a difference a flag makes — Why ship owners' responsibility to ensure sustainable ship recycling needs to go beyond flag state jurisdiction.

The analysis of the link between flags of convenience (FOCs), in particular "end-of-life flags" and substandard shipbreaking practices, shows that FOCs are likely to undermine the implementation of the polluter pays principle by making it easy for ship owners to circumvent legislation by flagging-out to a non-party or a non-compliant flag.

In conclusion, the briefing paper asserts that solutions urgently needed to ensure sustainable ship recycling must go beyond flag state jurisdiction in order to close the loopholes created by the FOC system.

According to the Shipbreaking Platform, most ship owners circumvent existing legislation meant to protect in particular developing countries from hazardous wastes present within the structure of end-of-life vessels, and are therefore not held accountable for polluting and dangerous shipbreaking practices.

Only a small number of ship-owning companies have taken voluntary measures to ensure the clean and safe recycling of their obsolete vessels.

For the sake of higher profits, most ship owners sell their end-of-life vessels with the help of a cash buyer to a shipbreaking yard that lacks proper infrastructure and safe working conditions. It is a choice of profits at the cost of people and the environment.

The EU has a particular responsibility to provide solutions to the shipbreaking problem as about 40 per cent of the world's commercial fleet is owned by European companies and one third of the tonnage broken every year in substandard yards in South Asia was sold by European companies.

Source: fiji times. 15 April 2015

14 April 2015

Platform News - 32 Multinational Companies Say 'No' to Dirty and Dangerous Shipbreaking:

Brussels, 2 April 2015 – Major companies such as H&M, Tetra Laval, ABB, Philips, Volvo and Volkswagen do not want to be associated with substandard shipbreaking practices in South Asia and have asked their forwarders – the shipping companies they use to transport their goods – to adopt sustainable ship recycling policies.

In January, the NGO Shipbreaking Platform published its annual list of global dumpers including 641 ships that were sold for substandard shipbreaking on the tidal beaches of India, Pakistan and Bangladesh. Several of these ships were owned by companies that the members of the Clean Shipping Network (CSN), a network of 32 multinationals [1], use to transport their products. MSC, Hanjin, MOL, Yang Ming, Conti, G Bulk and Danaos were some of the ship owners that last year made a deliberate choice to sell their end-of-life vessels to a substandard shipbreaking yard for the sake of higher profits – a choice of profits at the cost of people and the environment.

CSN members have now reacted to this irresponsible practice with a statement condemning the breaking of ships on tidal beaches. In the statement, shipping companies mentioned on the Platform’s list of dumpers are asked to review their policies and practices regarding the selling and recycling of end-of-life vessels. The shipping companies are also asked to report on their ship recycling policy in the Clean Shipping Index questionnaire, a tool used by leading international cargo owners to evaluate the environmental performance of their providers of sea transports.

Eleven of the CSN members even went one step further by sending a letter directly to their business partners in the maritime industry stating that working with companies that do not deal responsibly with their end-of-life fleet is unacceptable for them. They warned that sustainable ship recycling is an issue they will consider when signing agreements with shipping companies, and stated that poor performance in the field of environment and social policies have consequences for their business decisions.

“We believe collaboration is a must to bring about systematic change to the sea transport industry. The Clean Shipping Network members use the procurement process to enhance sustainable development and to raise awareness on how the shipping industry impacts the environment", says Sara Sköld, Director of the Clean Shipping Index.

With increasing pressure from also their customers, many ship owners will have to seriously consider revising their ship recycling practices. Currently thirteen large shipping companies follow sustainable ship recycling policies, including Royal Dutch Boskalis, Canadian CSL Group and Singapore-based China Navigation Company. More recently, German Hapag-Lloyd joined the group of ship owners that opt for ship recycling off the beach. They did so on principle, even if they have to compromise on their profits – just as the other progressive ship owners committed to the proper end-of-life management of their fleet, they simply do not want to be responsible for polluting sensitive coastal zones and putting workers lives at risk during dirty and dangerous shipbreaking on tidal beaches.

Quote from CSN member KappAhl
By Fredrika Klarén, Sustainability Manager at KappAhl:

 "At KappAhl, one important task in our sustainability work is to contribute to a sustainable development in our suppliers’ business. Thus we take measures to promote a shipping industry built on environmental and social values.

Sustainability requirements are a part of all of our supplier relations. We have followed the development of social issues in the shipping industry closely, and have seen the reporting from the Shipbreaking Platform regarding ship dismantling on the beaching yards of Bangladesh, India and Pakistan, which leads to environmental pollution and unsafe working conditions.

To address this issue, we have integrated requirements regarding a policy for safe and environmentally sound recycling of vessels in our tender process with forwarders, with good response from our suppliers. But, in the end, the availability of ship owners with the right policy and control systems is low, and we have not been able to see a direct effect from our requirements.

We are therefore very happy to now collaborate with our fellow members in the Clean Shipping Network in order to address the urgent need for action when it comes to this matter – we hope that it will contribute to the change that is needed to end these unsustainable practices which effect the environment and people’s lives so negatively."

Read more about KappAhl’s sustainability work

NOTES

[1] The Clean Shipping Network was established in 2008 and has its roots in Sweden. Thirty-two multinationals are already members, including well-known companies such as H&M, Volkswagen, Volvo, Ericsson, Tetra Laval, Philips, ABB. When contracting forwarders they use the Clean Shipping Index, a simple tool which can be consulted over the internet and that gives the multinationals an overview of included shipping companies’ environmental performance related to the emission of carbon dioxide, sulfur oxides, nitrogen oxides, the use of chemicals and waste management. The multinationals only do business with owners who register their ships in the Index. Currently there are 48 shipping companies listed, including nineteen of the twenty largest shipping companies. In total there are more than 2,000 ships included in the Index.


Source: NGO Shipbreaking Platform. 2 April 2015

Buying trend returns to ship recycling markets:


Cash buyers showed a willingness to acquire ships for demolition last week, amid talks that the Indian government would impose import taxes on Chinese steel.

Improving local steel prices and a stabilising Indian rupee also saw scrap prices rising by at least USD20/ldt.

Dubai-based cash buyer Global Marketing Systems (GMS) commented, "Capacity remains very good locally and it is encouraging to finally see end buyer enquiries emerge for all types of vessels in the subcontinent again. Consequently, several market sales took place this week at improving rates and a number of other units were under negotiation at speculative levels as cash buyer competition ramped into overdrive once again."

Prices in Bangladesh improved to USD380/ldt for bulkers and USD400/ldt for tankers, compared with USD365/ldt and USD385/ldt two weeks ago.

Arpeni Pratama Ocean Line's 1990-built Panamax bulker Citrawati fetched USD3,711,630 or USD390/ldt, while Pacific International Lines' (PIL's) 1992-built multipurpose carrier Kota Berlian was committed at USD2,975,600 or USD400/ldt.

Brokers told IHS Maritime that having acquired quite a number of Capesize bulkers since the start of the year, cash buyers and scrapyards have been slowing down their purchases of such ships. However, this should change if scrap prices hold up.

Meanwhile, prices in India improved to USD370/ldt for bulkers and USD390/ldt for tankers, compared with USD350/ldt and USD370/ldt two weeks ago.

GMS said, "Moreover, with yard capacity standing at almost 60% following a period of market decline and inactivity, now seems like the ideal time for many local recyclers to jump back into the buying."

PIL also offloaded another multipurpose carrier, its 1993-built Kota Berjaya, for a decent USD2,905,875 or USD405/ldt.

Furthermore, Goldenport sold its 1992-built Handymax bulker Golden Trader, fetching USD4,092,634 or an excellent USD398/ldt, due to the country of build and condition. IHS Maritime's Sea-web.com shows the ship was built by Split Shipyard.

Source: ihs maritime. 36030 March 2015