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
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
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.
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.
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
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 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.
Container shipping: new networks come into focus as the supply side holds the key to improvements Demand The most recent available data show that demand for the container shipping grew by 2.7 percent in 2016. With the supply side growing by only 1
Following last month’s news that Singapore Based Rickmers Maritime Trust is to be wound up, Rickmers Holding AG released a statement on April 19 reporting that an understanding had been reached regarding restructuring of the Rickmers Group.
Following another poor year for multipurpose shipping with further erosion of rates making it the worst market in over 10 years, signs of recovery are now evident with momentum expected to build over the next few years, according to the latest Multipurpose Shipping Market Annual Review and
Last year saw a record level of boxship demolition, and this rapid pace of scrapping was sustained into early 2017 with a record monthly level of boxship recycling recorded in January and nearly 0.2m TEU scrapped so far this year, Clarksons Research reported.
Goltens was contracted by a large cruise vessel owner to undertake the installation of two exhaust gas scrubbers on one of its ships to comply with sulfur emissions regulations. The vessel is powered by four GMT/Sulzer 16ZAV40S and two GMT/Sulzer 12ZAV40S diesel electric generating sets.
The pace of bulkcarrier fleet growth has fallen sharply since 2010, when the fleet grew by a record 17%, says a Clarksons Research report. In 2016, the supply side response to difficult market conditions saw the bulker fleet grow at the slowest pace so far this century
DONG Energy has decided to retire “Vindeby”, the world’s first offshore wind farm, which 25 years ago marked the birth of the offshore wind industry. Today, offshore wind is a recognised and proven renewable energy technology
The dry bulk industry remains well on target for profitable freight rates in 2019, according to BIMCO. This relies however, on the projected fleet supply growth rate of 0 percent in 2017 continuing. The handymax segment may even see profits in 2018 as demand may go beyond 2 percent in 2017 before
As the dry bulk fleet grew by 2.6 percent year on year in January 2017 it exceeded 800 million DWT. This was due to dry bulk demolition being half of what is was in January 2016, while total dry bulk deliveries reached its highest level since January 2013.
Clarksons Research has released 2016 liner market review. After another year of extremely difficult market conditions, many would forgive liner sector players for an air of resignation. However, despite a challenging freight market
Containership deliveries changed course in 2016, toppling from the record level of 1.7m TEU in 2015 to reach just 0.9m TEU, having previously increased each year between 2011 and 2015, says a report from Clarkson Research Services.
It may seem a big surprise for a country whose industry is proud of green technology and engineering solutions, but Germany is responsible for the worst shipbreaking practices among all shipping nations when one compares the size of its fleet to the number of ships broken irresponsibly
25 MidEast cargoes still to be fixed; VLCC rates fall to 4-month low. Freight rates for very large crude carriers (VLCCs), which hit a four-month low on Thursday, are likely to hold around current levels or nudge higher as charterers fix the final charters in February's loading
On an unprecedented scale, 5.5m DWT of crude oil tanker capacity (up 220% from January 2016), has already been delivered in 2017 (according to preliminary data from VesselsValue.com). January 2017 already accounts for 22% of the crude oil tankers previous year’s total deliveries
Chemical shipping vessel supply on major routes has been in surplus with many newbuilding deliveries and swing tankers flooding the market. As a result, freight rates on long-haul routes will continue to be challenged by surplus large vessels over the next two years