Strong demolition has been a prominent feature of the shipping industry this year, as challenging market conditions continue to drive a significant supply-side response in a number of sectors, says Clarksons Research. Across the total shipping fleet, demolition could reach one of the highest levels on record in full year 2016, but which markets in particular have taken the biggest hits? 2016 has been an extremely difficult year for the shipping markets, with conditions in most sectors under pressure. Reflecting this, demolition has remained at elevated levels, and in January to November, 841 vessels of 41.3m dwt were scrapped. Demolition so far this year has already exceeded last year’s total of 38.9m dwt, and whilst scrapping volumes have picked up in most sectors, some markets have played a more important role in this year’s tally than others. Amidst continued depressed earnings, bulkcarriers have accounted for the lion’s share of tonnage scrapped this year. Bulker scrapping set a new record in 1H 2016, and while demolition has slowed in recent months, 385 bulkers of 27.7m dwt have been scrapped in the year to date. Bulker demolition has been historically firm since 2011, but the pace of scrapping in most bulker sectors this year has still exceeded the 2011-15 average, with Capesize and Panamax recycling this year around 1.4 times this level.
As the containershipping market continues to drift through a prolonged downturn premised on overcapacity a subdued world economy, BIMCO reports a glimmer of hope: demolition of containerships almost tripled in the first five months of 2016 in comparison to the same period of 2015. This illustrates the efforts carried out by shipowners to counter the fundamental imbalance between supply and demand under poor container shipping market conditions
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.
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.
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
Today in the containership industry a landmark deal has occurred with the youngest ever containership sent for demolition by Rickmers Marine Trust. The vessel was a seven year old panamax boxship (4250 TEU, 2009 Blt, Built China). She is valued just above scrap at USD 5.87m. In 2016 the vessel fell 62% in value. This year the average change in value in the containership sector is -26% to put this figure in perspective
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
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.
Last year saw an upswing in Capesize spot rates during the first seven months of the year, peaking in early August, rallying briefly in September and declining for the rest of the year, says ALIBRA Shipping in its Weekly Market Report. This would seem to correspond with scrapping activity – owners sold many capes for demolition during the first half of the year but stopped scrapping as rates rebounded – which ultimately killed the market again.
Diana Containerships Inc. said that it has reached an agreement to sell the 2006-built Panamax vessel Angeles (formerly YM Los Angeles) for demolition, with delivery due to the buyer by mid-November 2016. The vessel was sold through Diana’s separate wholly-owned subsidiary to an
Containership demolition has reached an all time high, providing a positive surprise for the struggling container shipping sector. A record high level of demolition activity in the container shipping has continued its pace throughout 2016
A record year for containership demolitions in 2016 has helped suppress total fleet growth close to the rate for demand. To repeat that feat the scrapping record will need to be smashed again, and again. There are multiple ways to measure the vitality of the container industry
High scheduled deliveries and low demolition prospects will drive unwanted fleet growth of very large gas carriers (VLGC) in 2017 putting additional pressure on freight rates, according to the latest edition of the LPG Forecaster, published by global shipping consultancy Drewry.
Lower growth rates for refinery throughput and drawdowns on swollen oil stocks has impacted the seaborne tanker market negatively. BIMCO expected this to happen. BIMCO has reduced its forecast for crude oil tanker demolition in 2016: from 5 million DWT to 3 million DWT
Three bulk carriers sold charter-free at about market rates. Two Hanjin container ships also up for sale. Three ships chartered to Hanjin Shipping Co Ltd have been sold and two more vessels are up for sale, ship brokers said on Wednesday, kicking off an asset sale sparked by the failure of the
Shipping confidence, notably on the part of charterers and managers, improved for the second successive quarter in the three months to end-August 2016, according to the latest Shipping Confidence Survey from international accountant and shipping adviser Moore Stephens.
Cutting through piles made from concrete and steel and spending a long time under water isn’t a job for the faint hearted. So what kind of ‘rough diamond’ would be up to such a tough job? In a recent demolition project in Australia
Depressed dry bulk market conditions have put severe financial pressure on owners in recent times, triggering a slump in bulkcarrier contracting, observes Clarksons Research. This has helped drive a significant contraction in the bulkcarrier orderbook
In today’s conditions, the shipping industry needs supply-side re-positioning to help the markets back to improved health, and increased recycling in recent years has been a clear part of this, says Clarksons Research. However, there’s still some way to go to better times
In the containership market today, Panamax sector, the charter rates rest at rock-bottom rates and the fleet is in steady and perhaps terminal decline, with scrapping at record levels. Is the battle now lost? A report by Clarksons Research.
Clarksons Research says that there has been a rapid expansion in the world fleet over the last decade. However, the pace of growth has slowed dramatically in recent years. Generally more limited contracting and subsequently significantly lower delivery volumes combined with
Global ship demolition activity rose by 16 percent in the first nine months of 2016 in comparison to the same period of 2015, showcasing shipping industry action to counter the imbalance between supply and demand in the market, according to BIMCO.
Japan's big three shippers will report earnings on Monday as yen strength threatens to widen annual loss estimates, in a sector shaken by shrinking demand and over capacity that has already sunk a major carrier. Nippon Yusen KK (NYK), Mitsui OSK Lines Ltd (MOL) and Kawasaki Kisen Kaisha Ltd
At the recent annual Maritime Law Conference (MLA) held at Arabella in the Western Cape, various prominent government and international speakers took to the floor to debate and discuss national global maritime phenomena including inter alia; the progress in handling international oil