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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

Donjon Welcomes New Tug, Caitlin Ann


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

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

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.  

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?  

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

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

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.  

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’

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.

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

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



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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

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