Ship Recycling News

Nippon Yusen Kabushiki Kaisha (NYK) and Oono Development Co., Ltd. agreed to jointly study the commercialization of ship recycling, in which ships and large offshore structures are dismantled in Japan and recycled as steel scrap and other materials. The memorandum of understanding (MoU) was signed on September 18 at NYK's head office. Ship dismantling work will be performed at Japan’s only dry dock which can handle large ocean-going vessels and is owned by Oono Development in Chita City, Aichi Prefecture.

“Between January and August 2024, the number of recycled ships has dropped 42% y/y, the second lowest level in 16 years. The market has seen high freight rates and strong demand, delaying the recycling of older ships. On the supply side, the fleet has continued to grow slowly, limiting fleet renewal,” says Filipe Gouveia, Shipping Analyst at BIMCO.So far this year, only 45 ships have been recycled, adding up to 2.5 million deadweight tonnes (DWT) or 0.2% of the fleet. Recycling declined in all segments…

Washington State Ferries announced it has sold a pair of retired vessels for recycling in Ecuador.Sold for $100,000 apiece, the ferries Elwha and Klahowya have been acquired by Nelson Armas, who has gained approval from the U.S. Department of Transportation Maritime Administration (MARAD) to transport the out-of-service vessels by tow for recycling at a steel mill facility in Ecuador.WSF described the facility as "clean" and "green" and noted that both retired ferries are certified to be free of hazardous materials.A Western Towboat Co.

As Russia's war continues to rage in Ukraine and tensions hit a fever pitch in the Middle East, zooming out of the ship recycling markets, GMS sees geopolitical events taking centerstage across all shipping sectors (trading and recycling) for yet another week, with no end in sight. The mysterious bombing assassination of one of the founding members of Hezbollah in the heart of the Iranian capital city of Tehran early in the week sent shockwaves across the Arab world, followed by Iranian leaders vowing to avenge his death with a purported “new phase of war” in an already TNT loaded situation.

Damen Shipyards Group has launched a pilot project in which a small tug will be dismantled in a circular way and fully in line with the EU regulations.The project will serve as a trial, after which this approach of ‘green’ ship dismantling and recycling will be made available commercially, and also for larger vessels, according to Damen.The 15.4-meter-long tug named Jan, which was built in 1927, will be dismantled at Damen Shiprepair Rotterdam’s Botlek site in line with the regulations…

Lloyd’s Register (LR) has certified Nova Scotia recycling facility, R.J. MacIsaac (RJMI), according to the requirements of the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships.RJMI has become first Canadian facility to be issued a Statement of Compliance (SoC) to the Hong Kong Convention for international ship recycling standards, which is scheduled to enter into force in June 2025.RJMI was required to demonstrate that its environmental protection, workforce safety and emergency preparedness systems surpass the stringent conditions of the convention.

GMS launched a Ship Recycling Portal digital platform that aims to revolutionize the ship recycling industry by making the sales and purchase of end-of-life vessels more convenient, transparent, and efficient.The Ship Recycling Portal is a specialized vessel auction platform designed to streamline the sale of ships directly to shipyards for recycling. With it, GMS claims, ship recyclers have the flexibility to make real-time decisions on the vessels they wish to purchase from the comfort of their offices or homes."Ship recycling is an important pillar of the maritime industry…

According to GMS, it has been another intensely inert week in the Indian sub-continent ship recycling markets, with Bangladesh sinking to the bottom of the price-ranking board and neighboring India & Pakistan taking the lead (in terms of pricing and ability to secure unsold tonnage currently on offer).Not only does the Bangladeshi market have a vanishing appetite for vessels, but the lack of L/C and financing approvals also appears to be making local resales just as difficult…

In a first, Brazilian oil company Petrobras last week reportedly sold the P-32 FPSO for sustainable recycling in Brazil, paving the way for the development of the local ship recycling industry.The sale of the floating unit P-32 reportedly took place on July 7, 2023. In a collaboration supervised by Petrobras, the steel company Gerdau S.A. and shipyard Ecovix have been entrusted with the responsible and environmentally sound recycling of the FPSO."This decision marks the first time a commercial vessel at the end of its lifecycle will be dismantled in Brazil.

The International Maritime Organization (IMO), Bangladesh and Liberia have announced the ratification of the Hong Kong Convention by both nations, marking what shipping trade organization BIMCO said is the beginning of a new era for the ship recycling industry.The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, commonly known as the Hong Kong Convention, is a multilateral convention adopted in 2009, designed to improve the health and…

Bangladesh is set to ratify an international convention in early June on recycling ships aimed at increasing safety and environmental standards, a senior official told Reuters."We expect the first week of June for the official declaration," said Mamunur Rashid, a deputy secretary with the Ministry of Industries, who said Bangladesh is the world's top ship breaking and recycling centre.The Hong Kong Convention was adopted in 2009 by 63 countries and so far has been ratified by 20 nations…

“Over the next ten years, from 2023 to 2032, more than 15,000 ships with deadweight capacity of more than 600 million tonnes are expected to be recycled, more than twice the amount recycled in the previous ten years,” says Niels Rasmussen, Chief Shipping Analyst at BIMCO.As recycling volumes increase, it is increasingly important that the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships is ratified and implemented. The Convention was adopted in 2009 with the aim of reducing risks to human health…

After some recent declines in the sub-continent markets, the ship recycling market appeared to have reached the bottom early this week as a certain “stability” across the markets led to some greater confidence to acquire some of the slim pickings of tonnage currently available for recycling.However, as the week came to an end, global currencies seemed to suffer against the U.S. Dollar in unison, as all of the major ship recycling destinations faced some declines (especially in Pakistan), leaving sentiments under pressure.

As the ship recycle market enters a period of contraction going into the traditionally weaker and quieter summer / monsoon months, sentiments have declined across the sub-continent markets (and even Turkey) this week, according to GMS. To compound the bearish ship recycling sentiments, local steel plate prices have further weakened at key destinations and LME steel futures show few signs of any sort of recovery in the immediate future.That said, several vessels have been working firm over the past few weeks and sales have been taking place.

The results of this most recent market decline have been on full display this week as those vessels previously sold at higher prices are now struggling to deliver in a U.S. dollar starved Bangladesh (and Pakistan) and end buyers are starting to (expectedly) create unnecessary turbulence at the waterfront, especially on those high-priced incoming units.Steel plate prices continue to dither across all markets (including Turkey) over the past month or so, leaving the various recycling…

Recycling markets remain firmly poised for another week, following a stunning resurgence by the Bangladeshi market (in particular) that leaves them atop the price rankings board.Levels close to and even over $600/LDT are now being regularly presented on various vessels and this is inducing more Ship Owners to sell their vessels, especially as freight rates in the dry bulk and container sectors are failing to improve sufficiently for Owners to keep holding onto their aging tonnage.Cape rates have come back this past week…

M/S. S.N. Corporation’s Unit-02 ship recycling yard at Shitalpur, Sitakunda is now the second ship yard in Bangladesh to become compliant with IMO's Guidelines for Safe and Environmentally Sound Ship Recycling. The certification process was undertaken by Nippon Kaiji Kyokai, establishing that S.N. Corporation was capable of the intensive procedural and performance standards required under the Hong Kong Convention (HKC). This process was assisted by GMS under its Sustainable Ship & Offshore Recycling Program (SSORP).

It is the Bangladeshi market that has been impressing everybody of late (and for yet another week) with a lot of pent-up demand being realized and even news of some choice purchases at decent numbers on units that have managed to receive L/C approvals.Indeed, we have once again seen levels over $600/LDT in Bangladesh for the first time since the same time last year, and competing markets are increasingly struggling to keep up.India has been trying its best too and has managed to secure a number of HKC green sales this year…

A degree of increased positivity has entered recycling markets this week, said GMS, as prices push on in both India (off the back of firming steel and settling currencies) and Bangladesh (off of a rising demand and a currency that has recently found its stability around BDT 105).In fact, a number of sales have reportedly even taken place at increasingly firm numbers, giving ship owners a greater sense of confidence to offer their recycling candidates up for sale, especially after an altogether bleak two quarters.Financing problems persist in both Bangladesh and Pakistan…

This week, several more sales have registered as sub-continent ship recycling markets come roaring back – and a previously subdued Bangladesh starts to seemingly find some form once again, with some workable L/Cs from privately financed (rather than state controlled) banks.Despite the ongoing discussions about an IMF loan in the amount of about USD 2 - 3 billion, end buyers have been working to find alternate ways to pay for vessels for some time now and without the troublesome central bank approval, which is denying the disbursements of U.S.

An increase in the flow of tonnage has begun to buoy recycling markets and all potential locations are increasingly trying to secure vessels, in order to satisfy an progressively rampant demand that has built up over a record low influx of tonnage during a dreadfully quiet 2022.India continues to remain the primary focus due to their far more stable market conditions and ability to finance new L/Cs regardless of vessel size.Bangladesh and Pakistan continue to struggle with liquidity issues amidst a dire lack of U.S.

Following a virtually inert 2022 and a slightly busier start to 2023 at the various recycling destinations, much of the Far East was off celebrating Chinese Lunar New Year holidays this week and it has expectedly been a quieter period - in terms of sales and activity.A larger number of container vessels have so far been sold for recycling at the start of the year, and we are beginning to see signs that older dry bulk vessels with surveys due may follow suit  in the near future as well.Additionally, following a glut of tanker vessels concluded for recycling at the beginning of 2022, this is the

Another solid showing from sub-continent markets has given encouragement to ship owners and cash buyers, to start testing potential prices with firm candidates. Indeed, several deals have been concluded off the back of these improved numbers, including one more Capesize bulker at firm levels basis an ‘as is’ Singapore delivery.Now that the Chinese New Year holidays have concluded, the expected bounce in freight markets has yet to materialize, so an increased number of dry bulk…