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Vessel Demolition

Chinese, Greek Ship Owners Accounted for 40% of Global Recycling

Graph: Clarkson Research

 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 volumes have been strong in recent years. The top ten owner countries typically account for the majority of recycling with Chinese and Greek owners leading the way.   Last year a total of 860 ships of a combined 23m GT were reported sold for demolition. This is equivalent to 2% of the start year fleet. During the shipping market boom demolition activity was limited as owners capitalised on the strong earnings environment.    However, the onset of the global recession and strong supply side growth saw earnings weaken and scrap levels jumped to a record 37m GT in 2012.    While recycling has since slowed, volumes in 2014 and 2015 were around 25% above the average 18.1m GT reported recycled between 2005 and 2013. This is despite the recent fall in scrap steel prices, down by 40% since the start of 2015, driven by China’s exports of cheap steel billets to the Indian Sub-Continent.   The top 10 owner countries by demolition volume each year account for roughly 75% of tonnage recycled over the last decade. Demolition is highly consolidated within the top 10.   


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


GLDD Q2 2013 Results: Demolition Segment Strategy for Review

Great Lakes Dredge & Dock Corporation (GLDD) the largest provider of dredging services in the United States and a major provider of commercial and industrial demolition and remediation services, report financial results for the 3 and 6 months ended June 30, 2013. Jonathan Berger, Chief Executive Officer stated, “For the three months ended June 30, 2013, Great Lakes reported Revenue of $152.9 million, a Net Loss of $25.2 million and Adjusted EBITDA of $11.0 million


Donjon Welcomes New Tug, Caitlin Ann

TugCaitlinAnn_web.jpg

On August 1, 2011, Donjon added the 2400-HP-class tug Caitlin Ann to its growing fleet to support the company’s dredging, marine salvage, bulk material transportation and marine demolition services. The addition of the Caitlin Ann increases the Donjon towboat fleet to 14 total vessels ranging from 1200 to 7000 horsepower.  In addition, Donjon also owns and operates five derrick barges with a maximum capacity of 1,000 tons, more than 40 deck and hopper barges


Shipping’s Medical Drama Unfolds ... again

Source: Clarksons

 As the recycling market has started 2016 with a bang, with a huge volume of tonnage heading to demolition facilities, many of the key shipping markets continue to be in a state of very ill health, and owners seem to be rushing to the emergency room, reports Clarksons Research.   But with such a youthful global fleet on the water, how might this next episode of shipping’s medical drama play out?  


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.  


Tanker Scrappings Up As Second Quarter Demolitions Rise

Tanker scrapping reportedly shot up while the disposal of bulk carriers diminished as the total deadweight tonnage of ships sold for demolition rose by five percent in the second quarter of this year from the first quarter.


If in Doubt, Ask the Doctor: Is it Time to Buy?

Capt. Kaizad Doctor, PhD,

Trends in asset prices are generally important for vessel owners, banks who lend against them as well as commercial interests who make opportunistic acquisitions in times of depressed asset values. These trends however are for generic vessel types which are generalized from realized data consisting of actual sale and purchase (S&P) activity. We choose three representative vessel size categories from the dry and wet markets respectively and one size category from the Liquefied Petroleum Gas


Tanker Rates Expected To Rise In Year's First Half

Large tanker rates will increase during the first half of 2000 but freight prices will ease in the second period as new VLCCs are delivered, Norwegian shipbroker P.F. Bassoe A/S & Co. said. Bassoe predicts that tanker demand will increase by 2.6 percent over 2000 on the basis that OPEC output restraints would remain in place until March 2000 and a gradual production increase will follow. Increased crude exports would be driven by rising Asian demand and a slight increase in U.S


Captain Convicted of Dumping Asbestos

A Federal Jury found Ronald Cook, a Canadian citizen, guilty of illegally dumping trash bags full of asbestos into the Gulf of Mexico and elsewhere. He had been hired to lead a crew performing demolition on an old ferry boat, the Muskegan Clipper, as it sailed from San Diego, California, through the Panama Canal to Mobile, Alabama. The ship was eventually to be transformed into a riverboat gambling casino. In order to save time and costs, the crew bagged up the demolition debris


Rickmers Profit Nosedives, Plans Lay-ups

Photo: Rickmers Trust Management Pte. Ltd

 Rickmers Maritime incurred a loss of US$55.6m in the second quarter, wider than the year earlier $15.7m on the back of a non-cash impairment charge as charter market conditions deteriorate.   The Singapore-based consider is planning to lay up some of the 11 containerships it has


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


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.


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


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 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.  


Shipping’s Half Year Report – “Must Do Better”

Graph: Clarksons Research

 With the spread of challenges facing the industry, it’s unlikely the shipping markets would achieve many top grades, says Clarksons Research.    However some sectors might still achieve an “A” for effort and this week’s analysis reviews the markets’


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.  


Tanker Fleet Grows by 203 Units Last Year

Table: Gibson

 The tanker fleet has grown over the past twelve months by another 203 units amounting to 21.9 million dwt, says Gibson's Mid-Year Review of Weekly Tanker Market Report.    This follows a period of very limited fleet growth (across all but the MR sector) following a period of


Demand, Bunker Pricing Spurs Asia Dry Bulk-Capesize Rates

File Image: a bulk carrier underway (Credit: BSM)

Owners asking $1 per tonne more on Australia-China rates; Panamax rates climb to two-month high, but remain under pressure. Freight rates for large capesize dry cargo ships on key Asian routes could continue to firm next week on higher cargo volumes and bunker prices


Dry Bulk Recovery will Require a Team Effort

(Photo: Pierre F. Beckman, Bulldog and Partners)

Experts believe the dry bulk market is positioned to become profitable by 2019 – but only if a series of sustained measures are taken year on year by the ship owning community as a whole, according to a report recently published by BIMCO.  


Demolition: A Spring Clean For The Fleet?

Graph: Clarksons Research

 As summer approaches in the northern hemisphere, scrapping activity has been continuing at a firm pace, and appears set to come close to record levels in full year 2016, accroding to a report by Clarksons Research.   With earnings suffering in the bulkcarrier and containership sectors


Is There Often A Rose Between Shipping’s Thorns?

Graph: Clarksons Research

 Historically, a prime characteristic of the shipping industry has been that when one sector is performing weakly there is generally another that is strong, and that even when most of the markets are down there is often one which provides at least some counterbalance by performing more


BIMCO: BDI Conducts the Demolition Activity

Courtesy BIMCO  Clarksons

The Baltic Dry Index (BDI) ’s positive effect on capacity being removed from the fleet did not continue into Q2 2016, as capesize demolition came to a halt. The BDI went from “devastating” in February to “poor” in April with the highest total demolished DWT ever


Batting In Hostile Conditions? Watch Deliveries Closely…

Graph: Clarksons Research

 The delivery run-rate is a vital supply-side lever. As part of the ‘market mechanism’, when the earnings environment gets tough deliveries will typically moderate to adjust, either in the long-run as a result of reduced ordering or in the short-term as scheduled deliveries are






 
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