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Ship Demolition

BIMCO: Containership Scrapping Heats Up

(Source: BIMCO)

  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. However, more needs to be done to lift the charter market. The demolition of capacity in the panamax segment (3-5,999 TEUs), since the start of January 2016 till the year to date, has been especially significant. A total of 150,863 TEUs of panamax ships have been demolished so far in 2016, this equals the number of the same type of ship scrapped from June 2014 up to and including December 2015. One possible explanation behind the higher demolition in the panamax segment since January 2016 is their potential redundancy – due to the opening of the new locks of the Panama Canal on 26 June 2016. This will soon allow neo-panamax containerships with a maximum beam of 49m to pass through. The new set of locks was inaugurated by COSCO Shipping Panama a ship with a capacity of 9,443 TEUs. More and larger ships are set to enter, as the new locks begin to operate with full capacity.

Dry Bulk Demolition in a Tough Place

Graph: Clarksons Research

 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

$23.7m for Drydock Modernization

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 Stranded on Welsh Coast to be Broken Up

MV Carrier: Photo credit Reederei Erwin Strahlmann

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.

New Record Year in Dry Bulk Demolition Underway - BIMCO

Demolition activity in 2015

  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.  

Capsize Scrapping: It's Complicated!

Graph: ALIBRA Shipping

 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.   

Mammoet Gets Salvage Order

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.

Donjon Completes Contract on Grand Bahama

Photo courtesy Donjon Marine Co.

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

Prosperous Times For India's Ship Breakers

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.

Diana Containerships Sheds Panamax Boxship

diana containership logo.png

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).

Diamond Wire Saw Cuts 200 Piles in Wharf Demolition

Photo: Mirage Machines

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

The Bulkcarrier Orderbook: Long Story, Short Tale?

Graph: Clarksons Research

 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

Can Shipping Keep Its Big Break Going?

Graph: Clarksons Research

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

Panamax Containerships: Is the Battle Now Lost?

Graph: Clarksons Research

 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.  

Global Tonnage Continues to Grow

Image: Gard

 2015 saw further growth in total Group entered tonnage, which increased from 1,047 billion GT as at August 2014 to 1,088 billion GT as at August 2015, says annual review of International Group P&I Clubs (IGP&I) published by Gard on July 14, 2016.  

A Painful Shipping Record – Vessel Scrapping

file image: Marad

More containership capacity is being demolished than ever before, including old-design ships made redundant by the new Panama Canal. Drewry checks if this end the current capacity surplus?   Now is not a good time to own an old containership

Global Fleet Growth: A More Mature Trend?

Graph: Clarksons Research

 The supply of ships into the fleet is a key determinant of vessel earnings across the shipping sectors, and world fleet growth is closely followed by everyone in the maritime industry, says Clarksons Research.   In recent years the overall pace of growth of the world fleet appears to

Los Angeles Pushes for Valero Terminal Improvements

Liquid Bulk Terminals Photo Port of Los Angeles

The Port of Los Angeles has released an Initial Study/Notice of Preparation (IS/NOP) — the first step in the Environmental Impact Report (EIR) process — for a Marine Oil Terminal Wharf Improvements Project at the Valero Terminal on Mormon Island in Los Angeles Harbor.

Boxship Capacity Crosses 20 million TEU Mark

Graph:  Clarksons Research

 This week, containership fleet capacity has passed the 20 million TEU mark, another milestone in the rapid rise to prominence of the sector, according to Clarksons Research.   Down the years, much of the capacity expansion has been driven by the delivery of larger and larger units at

Unexpected Demand to Boost Dry Bulk Rates -Drewry

1-year time charter rates (Source: Drewry’s Dry Bulk Forecaster report)

Increasing trade and contracting supply will support a recovery in charter rates on major dry bulk shipping routes, with the prospect of China importing more coal and iron ore to combat pollution and poor quality, according to the latest edition of the Dry Bulk Forecaster



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The Price Ratio Between Newbuild and Secondhand

Graph: Clarksons Research

 Looking at the ratio between newbuild and secondhand prices is a classic method of examining the state of various shipping sectors, says Clarksons Research.   But the metrics can be just as revealing at the older end of the market

2016 VLCC Earnings Will Surpass 2014 -BIMCO

Graph source: BIMCO

 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

Hanjin-chartered Ships Sold, More on Block

File Image: A Hanjin boxship underway (Credit: Hanjin)

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 on the Rise -Moore Stephens

Greiner Richard (Photo: Moore Stepehens)

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.  

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