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.
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
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
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
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?
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. In February 2017, fleet growth reached 2.8 percent. If the fleet growth remains above 2 percent, the dry bulk shipping industry cannot rely on global demand to cure the oversupply caused by this fundamental imbalance in the market
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
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
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.
The multipurpose shipping market will see the first signs of recovery by the end of 2017, following in the steps of the dry bulk and container shipping markets, according to the latest Multipurpose Shipping Market Review and Forecaster report published by global shipping consultancy Drewry. Dry cargo demand is weak but strengthening with multipurpose shipping market share expected to grow at just under 2% per year to 2020
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.
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.
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
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.
After another year of extremely difficult market conditions, many would forgive liner sector players for an air of resignation, according to Clarksons Research. However, despite a challenging freight market, charter rates remaining firmly in the doldrums and a major corporate
In 2016 the shipping industry saw significant supply side adjustments in reaction to continued market pressures, says a report from Clarksons Research. For shipbuilders this meant a historically low level of newbuild demand with fewer than 500 orders reported in 2016
As widely expected, the opening of the new, expanded locks at the Panama Canal in June 2016 has considerably impacted the ‘old Panamax’ containership sector, says a report by Clarkson Research Services. The displacement of these narrow beam vessels
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
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
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
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
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.
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
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 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