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Ship Recycling Industry News

07 Jan 2024

Signs of Recovery for Ship Recyclers in 2024

Source: GMS

After what has been an overall miserable 2023 in the ship-recycling industry and even worse six-month tail end, 2024 seems to be off with just a little more hope and a chance at recovery as positive signs seem to permeate through the markets, says cash buyer GMS.Critical factors such as declining currency values (except in India), flatlining / declining local steel plate prices, and the dreadful (and ongoing) lack of funding on fresh acquisitions (in Bangladesh and Pakistan), all came together over the course of the summer / monsoon months of 2023.

05 Nov 2023

Ship Recycling Market Cools

Source: GMS

Inflation, fundamentals, currencies (except in India), vessel pricing, and overall weakening sentiments have beset the ship recycling market over the past week, reports cash buyer GMS.The effects have been felt across all the sub-continent ship-recycling destinations (even Turkey to an extent), which have cooled by about US$ 20/LDT over recent weeks, says GMS. However, India and Bangladesh have reported surprising increases in steel plate prices over the last week.“Seemingly on the back of global steel plate prices…

02 Oct 2023

Ship Recycling Industry Expecting Fourth Quarter Boost

Source: GMS

Despite the impending onset of various holidays at ship recycling destinations, India is poised to give sub-continent markets a boost as the industry heads into the fourth quarter.“While Indian aggression may ease up a touch as Diwali holidays descend, it is expected that Pakistan, and perhaps even a decidedly lackluster Bangladesh, may eventually step up in the weeks and perhaps even the final few months leading into 2024, helping secure any of the remaining unsold tonnage, or fresh ones that may hit the market down the line,” reports cash buyer GMS.A recently resurgent Pakistani market has u

07 Sep 2023

GMS Debuts Ship Recycling Portal

Ship recyclers attend the GMS online portal launch. Photo courtesy GMS

GMS launched a Ship Recycling Portal digital platform that aims to revolutionize the ship recycling industry by making the sales and purchase of end-of-life vessels more convenient, transparent, and efficient.The Ship Recycling Portal is a specialized vessel auction platform designed to streamline the sale of ships directly to shipyards for recycling. With it, GMS claims, ship recyclers have the flexibility to make real-time decisions on the vessels they wish to purchase from the comfort of their offices or homes."Ship recycling is an important pillar of the maritime industry…

18 Jul 2023

GMS Reports Ship Recycling Industry Frustration

© Mulderphoto / Adobe Stock

It has been another frustrating week across all of the major ship recycling destinations, with prices marooned / flat and businesses yet to fully resume at pace following the conclusion of Eid holidays, reports GMS in its weekly report for Week 28, 2023.GMS recalls the good news that Bangladesh has completed its accession to the Hong Kong Convention (HKC) as further progress is made in recycling markets before the convention formally enters into force.Meanwhile, the lack of tonnage…

11 Jul 2023

Petrobras Makes History, Sells First FPSO for Green Recycling in Brazil

FPSO P-32 - Credit: Petrobras

In a first, Brazilian oil company Petrobras last week reportedly sold the P-32 FPSO for sustainable recycling in Brazil, paving the way for the development of the local ship recycling industry.The sale of the floating unit P-32 reportedly took place on July 7, 2023. In a collaboration supervised by Petrobras, the steel company Gerdau S.A. and shipyard Ecovix have been entrusted with the responsible and environmentally sound recycling of the FPSO."This decision marks the first time a commercial vessel at the end of its lifecycle will be dismantled in Brazil.

26 Jun 2023

'A New Era for the Ship Recycling Industry'

© Sved Oliver / Adobe Stock

The International Maritime Organization (IMO), Bangladesh and Liberia have announced the ratification of the Hong Kong Convention by both nations, marking what shipping trade organization BIMCO said is the beginning of a new era for the ship recycling industry.The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, commonly known as the Hong Kong Convention, is a multilateral convention adopted in 2009, designed to improve the health and…

30 May 2023

BIMCO Launches Ship Recycling Film

Source: BIMCO

BIMCO has launched a film calling for the urgent adoption of the Hong Kong International Convention for the safe and Environmentally Sound Recycling of Ships (Hong Kong Convention) and for shipowners to only choose yards that live up to the convention.“Ship Recycling: Time for Change” is partly filmed at ship recycling yards in Alang, India, one of the largest ship recycling nations in the world together with Bangladesh. The film aims to raise awareness among global regulators…

17 May 2023

Bangladesh Ready to Ratify Hong Kong Convention

© saintmichel85 / Adobe Stock

The Bangladesh Government has confirmed that it will ratify the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships in the next few weeks, allowing for the Convention to enter into force.BIMCO’s Secretary General and CEO, David Loosley visited Bangladesh as part of an industry delegation to discuss the benefits of the Convention entering into force. “BIMCO is delighted that Bangladesh has confirmed their commitment to ratifying the Convention in the very near future.

09 May 2023

Ship Recycling Market Slows

Copyright katiekk2/AdobeStock

As the ship recycle market enters a period of contraction going into the traditionally weaker and quieter summer / monsoon months, sentiments have declined across the sub-continent markets (and even Turkey) this week, according to GMS. To compound the bearish ship recycling sentiments, local steel plate prices have further weakened at key destinations and LME steel futures show few signs of any sort of recovery in the immediate future.That said, several vessels have been working firm over the past few weeks and sales have been taking place.

08 Aug 2022

Ship Recycling Market Slows with Dearth of Tonnage for Scrap

Sub-continent markets are going to be (seemingly) deprived of tonnage in the foreseeable future, as recycling rates continue their downward descent and tighter restrictions are placed on importing large LDT tonnage into Bangladesh and now Pakistan (with limits on large $ value L/Cs).Firm chartering freight rates across the board are also seeing Ship Owners preferring to maintain their vessels for further voyages, rather than deal with the ongoing headaches associated with present day sub-continent recycling (despite seeing some of the firmest recycling rates in a while), all the challenges currently associated with questionable performances…

20 Jun 2022

Bullish Freight Markets, Strong Dollar conspire to keep Ship Breaking Prices Subdued

Copyright Gudellaphoto/AdobeStock

Following the recent dramatic price plunges which have seen almost $100/LDT wiped off prices, the ship recycling industry in the Indian sub-continent seems to be taking a bit of a pause, as end buyers remain less than confident to offer any firm prices with certainty, according to GMS.Adding to the frustration is the minimal number of candidates currently available to work on, such is the bullish state of all freight sectors. Accordingly, we may see a prolonged summer/monsoon lull across all sub-continent recycling locations.On the West end…

03 Jan 2022

After a Raucous 2021, Ship Recycling Market Starts 2022 Calmly

Copyright Shmel/AdobeStock

With markets down, a quieter festive period has ensued with no fresh (market or otherwise) sales having reportedly taken place and a calmer period of consolidation transpired in the last week of 2021, as the industry reflects on an extraordinary year gone by.The sub-continent markets more than doubled since the lows seen at the height of the Coronavirus pandemic last year, as levels managed to hit decade long highs of about $650/LDT, up from the lows of $260/LDT or so, seen during…

31 Mar 2020

Outlook for India's Ship-breaking Turns Negative

© Joseph Myerscough / Adobe Stock

The outlook for India's ship-breaking industry has turned negative amid volatile scrap prices and a falling rupee, says ICRA.The country's ship-breaking activity, while tepid during CY2019 due to subdued demand and depressed scrap prices, gathered momentum at the start of CY2020 following the implementation of the International Maritime Organization (IMO) sulphur cap regulations from January 2020. But weakness in the international shipping markets further aggravated by the coronavirus has since dampened sentiments.

23 Dec 2019

India: Recycling of Ships Bill Becomes an Act

The Recycling of Ships Bill 2019 for safe and environmentally sound recycling of ships in India has become an Act after receiving the assent of President of India.The government of India decided to bring this Act to provide for the regulation of recycling of ships by setting certain international standards and laying down the statutory mechanism for enforcement of such standards.The Government has also decided to accede to the Hong Kong International Convention for Safe and environmentally Sound Recycling of Ships, 2009. Accordingly, India has acceded to the Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships…

20 Nov 2019

India to Enact Recycling of Ships Bill

The Union Cabinet of India approved the proposal for enacting Recycling of Ships Bill, 2019 and accession to the Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships 2009.According to a governmental release, the proposed bill will restrict and prohibit the use or installation of hazardous material, which applies irrespective of whether a ship is meant for recycling or not.For new ships, such restriction or prohibition on use of hazardous material will be immediate, that is, from the date the legislation comes into force, while existing ships shall have a period of five years for compliance.Restriction or prohibition on use of hazardous material would not be applied to warships and non-commercial ships operated by Government.

12 Nov 2019

For Ship Recycling, Grieg (Goes) Green

A vessel placed in dry-dock in preparation for recycling. Photo credit: Grieg Green.

In May 2014 National Geographic wrote an in-depth article on shipbreaking operations in Bangladesh where they listed shipbreaking as one of the deadliest professions in the world. The images from these shipyards are well circulated among professionals in the shipping industry. Individuals without personal protective equipment cutting and grinding into a ship that was haphazardly beached and torn asunder by unskilled laborers. Pollution swirl in the nearby tidal area and soot belches into the air. Large sections of ships come careening off endless rows of vessels that litter the beach.

12 Aug 2019

Ship Recycling: Wallenius Wilhelmsen Wins Award

Norwegian/Swedish shipping company Wallenius Wilhelmsen’s role in developing the pioneering Ship Recycling Transparency Initiative has been recognised with another award from the automotive sector, as efforts to improve vessel recycling practices step up a gear."Wallenius Wilhelmsen’s founding role in the Ship Recycling Transparency Initiative (SRTI) has been recognised with a second automotive industry award," the  logistics and shipping solutions provider said in a press note.Wallenius Wilhelmsen was recognised with the Greener Supply Chain award at the Automotive Logistics Europe Awards for its work with the SRTI, which helps cargo…

06 Aug 2019

China Shares Ship Recycling Knowledge

Global application of the regulations in International Maritime Organization (IMO)'s treaty for safe and environmentally-sound ship recycling - the Hong Kong Convention -  will have significant benefits for the environment and for the safety of workers in the sector.China, a major ship recycling country, has been developing its ship recycling facilities to ensure their compliance with the environmental and occupational health and safety requirements of the Hong Kong Convention.China shared its experience and knowledge with representatives of the government and ship recycling industry from Bangladesh, during an IMO Seminar on Ship Recycling and the Hong Kong Convention…

10 Dec 2018

IMO Launche Ship Recycling Project in Bangladesh

The second phase of an International Maritime Organization (IMO)-implemented project to enhance safe and environmentally sound ship recycling in Bangladesh has been launched at a meeting of stakeholders in Dhaka, Bangladesh.According to a press release from IMO, the 19-month project is funded under a US$1.1 million agreement with the Government of Norway. It focuses on building capacity within Bangladesh to develop a legal, policy and institutional reform roadmap towards accession to the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (known as the Hong Kong Convention), and will train a variety of stakeholders within a well-functioning training system.

26 Sep 2018

ECSA Mulls More Capacity on EU Recycling

The European Shipping industry welcomes the European Commission’s current inspections of ship recycling facilities in order to enlarge the list of approved facilities that will ensure safe and environmentally sound ship recycling.When non EU facilities such as Indian facilities are found to be compliant with the requirements, they should be included in the EU list, as it will facilitate and encourage further positive developments taking place in South Asia and worldwide.By 31st December 2018 all ships flying a European flag have to be recycled in a facility which is included in the European list. “A lot has been written lately on whether…

15 Sep 2017

Japan's JICA to Fund India's Alang-Sosiya Shipyards

The Government of India signed a loan deal worth USD 76 million with Japan International Cooperation Agency (JICA), for a project to upgrade the environment management plan at Alang-Sosiya ship recycling yards. The total cost of the project will be $ 111 million, out of which $76 million will be provided as soft loan from JICA. Out of the remaining amount, $25 million as taxes and fees will be borne by Government of Gujarat and the balance $10 million will be shared by Ministry of Shipping & Government of Gujarat. The project will be executed by Gujarat Maritime Board (GMB) and is likely to be completed by 2022. This project will help the Alang-Sosia ship-recycling yards to comply with international safety & environmental regulations.

01 Mar 2017

Bangladesh Targets Better Ship Recycling Practices

Photo: IMO

With an annual gross tonnage capacity of more than 8.8 million, Bangladesh’s ship recycling industry is one of the world’s largest, second only to neighboring India in terms of volume. But for these countries ship recycling practices have long been a matter of concern, particularly in terms of safety and environmental sustainability. Now on the heels of completing its first phase of a project aiming to improve standards within the nation’s ship recycling industry, the Government…