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Ship-Breaking.Com Information Bulletins on Ship Demolition, # 12 - 14 from January 1St to December 31St, 2008

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Ship-Breaking.Com Information Bulletins on Ship Demolition, # 12 - 14 from January 1St to December 31St, 2008 Ship-breaking.com Information bulletins on ship demolition, # 12 - 14 from January 1st to December 31st, 2008 Robin des Bois 2009 Press Release February 3rd 2009 Global Statement 2008 of shipping vessels Sent to Demolition For the third consecutive year, the association Robin des Bois has studied in detail the reality of the ship- breaking market through the mobilisation and the analysis of about thirty diverse and specialised bibliographical sources. In 2006, Robin des Bois tallied 293 vessels sold for demolition and 288 in 2007. In 2008, 456 vessels have left the ocean. This large increase of vessels to be demolished (+ 58%), follows suit with the total weight of recycled metals: 3.7 million ton in 2008 against 1.7 million in 2007, i.e. more than double. The flow of vessels leaving the oceans in 2008 was dense and even accelerated towards the end of the year. The prices offered by the Asian ship-breaking yards at the beginning of the year continued to rise up until summer, they reached record averaging prices of around 800 $ per ton. The ship-owners took advantage to sell old and/or large vessels, in particular a large number of VLCC tankers (Very Large Crude Carrier). During autumn, for a while the decrease in selling rates of metals and the financial crisis disorganised the ship-breaking market: uncertainty in prices, difficulties in obtaining the cash finances or the letters of credit slowed down transactions and negotiations. The result was that China became a more stable and attractive destination than their Indian subcontinent competitors. After a number of wavering weeks, demolition prices stabilised to lower prices, equalling 2003 rates (i.e. around 200 $ per ton). In the mean time the flow of vessels did not slow down, on the contrary: on a global level the collapse of exports, as well as the freight rate, encouraged ship-owners to demolish their fleets of old and/or no longer used bulk carriers and container ships. 67 % of the container ships and 97 % of the bulk carriers were sold for demolition during the last three months of the year. Of the 456 vessels, 177 (39 %) were under a European flag or belonged to ship-owners established in the European Union or members of the European Free Trade Association (EFTA). In spite of the European Commission’s work to define in their Green Paper better ship-dismantling practices, the European ship-owners do not seem to be interested in work, safety and environmental conditions in Asian ship-breaking yards. In 2008, India and Bangladesh once again received the majority of vessels to be demolished (83% compared to 81 % last year). India was the first destination with 194 vessels (43%), just in front of Bangladesh with 182 vessels (40%); concerning the percentage of metal per ton to be recycled the ranking is the opposite, with more than 1.7 million tons for Bangladesh and 1.3 million tons for India. This year The United States Maritime Administration sold 25 vessels from their reserve fleet to local ship- yards. The drop in prices since autumn enabled China to return to the market with a total of 24 vessels to be demolished. The other vessels finished their life in Pakistan (19), Turkey (2), Belgium (1), and in Mexico (1). The size of the vessels demolished in 2008 is superior to that of 2007. 173 were less than 150 m in length, 161 measured between 150 and 199 m in length, and 122 were more than 200 m in length; in 2007 we only counted 35 vessels which were more than 200 m in length. The ages range from 18 to 64 years. The average age is 32. In 2008, the category of oil tankers, chemical tankers and gas transporters remain the largest number amongst all the vessels sent to be demolished with 148 vessels (32%) against 136 (46 %) in 2007 followed by bulk carriers 81 (18%), general cargo ships 62 (14%) and container ship carriers 61 (13 %); 46 reefers of which more and more are leaving their place to container ship carriers were also sent to be demolished. Of the 456 vessels sent to be broken up in 2008, 215 (47%) were detained with their crew in ports world- wide and in particular in Europe for not conforming to International maritime security regulations, of which 9 tankers listed by the European Maritime Safety Agency as single hull ships banned from transporting heavy fuel since 2005 under the framework from the Erika 1 Package and 5 vessels banned from European harbours under the implementation of the Port State Control directive. Association for the Protection of Man and the Environment 14 rue de l’Atlas 75019 PARIS France– Tel: 33 (0)1.48.04.09.36 Fax:33(0)1.48.04.56.41 E-mail : [email protected] www.robindesbois.org Information bulletin on February 3rd, 2009 ship demolition #14 September 22nd to December 31st 2008 Ship-breaking.com Cementco bulk carrier – Outbound Brisbane to Gladstone August 2007 – © Shipspotting Sold for demolition to Bangladesh by her Australian owner at the end of the year 2008. From September 22nd to December 31st 2008, 181 vessels have left to be demolished; the cumulative total of the demolitions will permit the recycling of more than 1.7 million tons of metal. During this period, India with 80 vessels (44%) to be demolished, is ahead of Bangladesh with 70 (39%), followed by China 20 (11%), and Pakistan 11 (6%). Bangladeshi ship-breaking yards prefer to buy high tonnage vessels; therefore Bangladesh is ahead of India with a total of 810,000 t of metal to be recycled compared with India at 570,000 t in 2008. Following record summer prices, the rates offered by ship-breakers started to decrease in September along with the fall of steel plate prices. At the end of September, vessels were still negociated at around 500 $ per ton, but the financial crisis, the restriction of credit facilities and the drop in freight rates all led to a collapse in demolition prices : compared to their highest level the prices were divided by three and fell back to their 2003 rates. In October, the difficulties in achieving transactions and uncertainty of prices on the Indian subcontinent resulted in China ranking for the first time as the number one destination of demolition. After some wavering weeks, transactions recovered and their rhythm accelerated during the last two months of the year. The global collapse of exports and freight rates encouraged ship-owners to get rid of their fleet of old and/or no longer used bulk carriers and container ships. From September 22nd to December 31st 2008, more than three out of four ships sent to demolition were bulk carriers 73, (43%), container ships, 41 (23%) and general cargo carriers 20 (11%). Tankers (oil tankers, chemical tankers, gas carriers) which were the first category of vessels to be demolished in 2007 representing around half the total number of vessels demolished tallied only 31 (17%) by the end of 2008. 117 ships (65 %) have been previously detained in harbours worldwide with a percentage of 75% for bulk carriers and container ships. 41 (23%) were classified by a non IACS society (International _____________________________________________________________________________________ Ship-breaking.com n°14 - Robin des Bois /January 2009 - 1/23 Association of Classification Societies). 65 (36%) have been built in the European Union or Norway. 87 (48%) were under European flag or had owners from the European Union or the European Free Trade Association (EFTA) of which 54 (34%) Greek. The age of these end-of-life ships range between 21 and 53; the average age is 29.5 years. 33 vessels were less than 150 m in length, 78 between 150 and 199 m and 70 between 200 and 315 m. The destinations of demolition are currently « dancing », often towards Bangladesh. This is in particular the case of three container ships owned by the French company CMA CGM : the Veronique Delmas, CMA CGM Potomac and Ursula Delmas all arrived to Chittagong in January where they were beached. Originally these three vessels were announced as being sold to Indian ship-breaking yard. It is the same situation concerning the soap opera of the German owned Maersk Barcelona, Maersk Brisbane and Ankara continues, regardless of the tip-off by Robin des Bois of their sale to be demolished to an Asian ship-breaking yard without any protocol, the denials of their ship-owner KGAL stating « To have not yet decided on the fate of the vessels » and the selling of the two first-mentioned ships to an Indian yard (see the press release dated April 21st 2008 “Oil slick queen demolished in Bangladesh” and the bulletin Ship-breaking.com # 13 ). The class of the Maersk Brisbane was withdrawn by the Lloyd’s Register of Shipping in September for survey overdue. The ship was beached to be broken up, not in India, but in Bangladesh on 8th November, as the “Brisbane Maru”, after an ultimate change of name and after dropping the Bahamean flag for the Saint-Kitts-and-Nevis flag. As for the A Elephant, and two other Very Large Crude Carriers from Taiwan Maritime Transport the B Elephant and the C Elephant were sold to Bangladesh for demolition. The A Elephant arrived to Chittagong in October but eventually left three months later to continue her career. The B Sea was sold for demolition to Bangladesh in early 2007 where she was repaired and continued to sail as the Woqoof-E-Mujdalefa from India to Bangladesh for nearly two years. She was detained in Kandla (India) in March 2008.
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