Clarksons Research says that the dry bulk markets are in a tough place at the moment and owners have responded by selling more, and younger, vessels for demolition. But just how tough have they been so far, and how tough might they get? The first 3 months of 2016 are shaping up to be the biggest quarter on record for bulkcarrier demolition. In the first 9 weeks of the year, 120 bulkcarriers of 10.1m dwt have been reported sold, a pace that, if continued, will see the current record of 10.9m dwt set in Q2 2015 surpassed. Such high levels of demolition clearly reflect the depressed state of the bulkcarrier market in 2016 so far. This week’s graph highlights previous occasions when low freight rates have led bulkcarrier owners to get tough with older vessels. The first period of sustained high demolition was in the mid-1980s, with activity peaking at 12.3m dwt in 1986 – equivalent to 6.2% of the total start-year fleet. In the same year average scrapping ages plummeted to 18.8 years – that was tough! The second major phase of demolition occurred through the second half of the 1990s and into the first half of the 2000s. Peak demolition levels were similar to those seen in the mid-1980s, with 12.3m dwt leaving the fleet in 1998. But fleet growth in the intervening period meant that this accounted for just 4.6% of the fleet at the start of the year
The monthly average for the first six months in 2015 is 3.3m DWT. In 2014 the first half year averaged at 1.33m DWT per month. April 2015 saw 5.36 million DWT being retired from active service, which was the highest on record ever for a single month. The record came on the back of continued poor earnings and deteriorating market conditions in dry bulk shipping, evidenced by the Baltic Dry Index (BDI) staying below 600 from 2 February to 13 May.
Mammoet Salvage of Schiedam, the Netherlands, agreed to terms for the removal of the wreck of the Liberian container ship, Safmarine Agulhas, which ran aground and broke in half in the South African port of East London. The operation will be carried out in South Africa in the coming months. Since starting its activities on January 1, 2006, Mammoet Salvage has completed ten salvage operations of varying sizes. Salvaging this wreck is the most extensive, specialized job yet.
W. F. Magann Corp., Portsmouth, Va., is being awarded a $23,789,519 firm-fixed-price contract for dry dock modernization at the Norfolk Naval Shipyard. The work to be performed provides for an extension to Dry Dock #8 to service the new CVN Class hull with the bulbous bow.Demolition of existing structures and utilities will be required to support the project as well as providing utility trenches, mechanical and electrical work and other incidental related work
Cargo ship 'MV Carrier' stranded on North Wales coast declared a 'constructive total loss', to be scrapped The MV Carrier will be cut into manageable sections on the shore at Llanddulas, near Colwyn Bay, and sent to a scrap yard by road, according to a BBC news report. The owners confirmed contractors will start the demolition once they remove the ship's 24,000 litres of fuel. The work is expected to take six weeks.
Press release - Diana Containerships has signed a Memorandum of Agreement to sell to an unaffiliated third party the 1995-built vessel "Garnet" (formerly "APL Garnet") for demolition, with delivery due to the buyer by the end of September 2015, for a sale price of approximately $7.85 million before commissions. Upon completion of the aforementioned sale, Diana Containerships Inc.'s fleet will consist of 13 container vessels (5 Post-Panamax and 8 Panamax).
State and federal officials held a meeting at the Harrison County Courthouse on March 7 for potential contractors who will bid to clean up inland channels and waterways in the three coastal counties. An overflow crowd of 150 demolition and salvage professionals packed a courtroom to learn from the U.S. Coast Guard and Mississippi's Department of Marine Resources the work they will have to do to get the contracts. The federal government has issued a solicitation at www.fedbizopps
J. Kokolakis Contracting, Inc., , is being awarded an $11,412,000 firm-fixed-price construction contract for renovations at U. S. Merchant Marine Academy, Kings Point. The work to be performed provides for the renovation of Murphy Hall, a three-story dormitory, and includes demolition and replacement of all interior finishes, mechanical, plumbing, electrical, intercommunication and fire protection systems. The work will be performed in , and is expected to be completed by Sept. 2009
On November 28, Donjon Marine, Co., Inc., a provider of multi-faceted marine services including marine salvage, heavy lift, dredging, recycling, demolition and related emergency response services, completed heavy lift work for Grand Bahama Shipyard Limited on Grand Bahama Island. The Donjon tug Mary Alice and derrick-barge Chesapeake 1000 assisted the shipyard with the lifting, transport and placement of a pre-fabricated module weighing approximately 375 metric tons for the Holland
The continuing slump in global shipping is translating into brisk business for scrap yards at Gujarat's coastal town of Alang in India. Alang, which receives one out of every two ships destined for breaking, has retained the top slot amid stiff competition from Pakistan, Bangladesh and China, reports TNN. With freight rates dropping 98% in less than six months of the peak shipping period, Alang is expected to surpass the 435 ships demolished in 2011-12.
A maritime country profile provides a basic snapshot of a country's situation regarding maritime transport and international trade, facilitating convenient cross-country comparisons. The Maritime Country Profiles will be updated regularly as new data becomes available.
Clarksons Research is exploring into the impact of the demand side on the state of health of the shipping markets. Despite the fact that today’s global orderbook appears less onerous than previously (at 16% of the fleet), capacity levels are still important
The multipurpose shipping market is not expected to recover until the end of 2017, when it is anticipated that there will be more bulk demand for the Handy vessels and therefore more breakbulk cargoes for multipurpose vessels, according to the latest Multipurpose Shipping Market Review and
After a slow start scrapping of containerships gathered momentum towards the end of 2015 and has continued into 2016, says Drewry Maritime Research. A record intake of newbuild containershps (1.7 million teu) in 2015 coincided with an unusually low scrapping total
According to Clarkson Research Services, the record pace of fleet growth over the last decade and weakening global demand outlook has left many of the major shipping segments facing severe oversupply. Demolition of older ships is one way of easing overcapacity and recycling
The volatility of the shipping markets has always presented opportunities and pitfalls for investors - an analysis from Clarksons Research. Getting the timing right is key, and newbuilding decisions can prove especially difficult given the need to look further forwards into the future
Clarksons Research says that the easing in bulkcarrier deliveries and the accelerated pace of demolition in recent years has seen bulkcarrier fleet growth slow from a rapid 17% in 2010 to just over 2% in 2015. In the short-term
In February 2016, Star Bulk has agreed to defer the delivery of five Newcastlemax vessels from 2016 to 2017 and 2018: three vessels were deferred from Q1 2016 to Q1 and Q3 2017, and two vessels were deferred from Q1 and Q2 2016 to Q1 2018. Consequently
No improvement in capesize rates expected until April; around 120 capesize vessels idle or open for charter -broker Freight rates for capesize bulk carriers on key Asian routes are likely to remain flat as the number of vessels for hire outpaces cargo demand, ship brokers said.
Lower oil prices performed wonders for the tanker market in 2015, says Drewry Maritime Research. Tonnage demand surged and oil trade expanded because of high consumption demand and increased stocking activity. Tonnage supply was also kept in check as the contango in oil
Celebrity Cruises has awarded ALMACO Group the contract to build 16 new crew cabins onboard Celebrity Summit during a short March drydock at Grand Bahamas Shipyard (GBS) and continuing during sailing. ALMACO’s scope of work includes demolition
The Gibson tanker report reflects on the subject of tanker demolition which is always topical, particularly now after several years of robust investment in new tonnage. With exception of Handy/MRs, the orderbook in percentage terms relative to the existing fleet is quite
With 12 weeks of 2016 behind us, the dry bulk market is still looking bleak. As the current low demand for transportation of commodities continues, the market is doing what it can by scrapping old ships and restraining from ordering new ones.
Overall confidence levels in the shipping industry fell to a record low in the three months to February 2016, according to the latest Shipping Confidence Survey from international accountant and shipping adviser Moore Stephens.
Bernhard Schulte Shipmanagement (BSM) is further expanding the scope of ship management services it offers with the addition of two new service offerings – Lay-up Services and Green Recycling. Both services have been developed to meet changing needs amid the tough economic environment