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Ship recycling market on “Pause Mode” - Clarkson Platou

Logistic News - Published on Fri, 24 May 2019

Image Source: IMO
The demolition market has been at a near standstill over the past few days, with deals few and far apart, in what signals a slow period. In its latest weekly report, shipbroker Clarkson Platou Hellas said that “as anticipated, activity this week has really slowed with only a handful of units reportedly negotiating and a lack of new candidates being placed in the market. Pakistani and Indian breakers, unlike their counterparts from Bangladesh at this present time, do have interest to acquire tonnage but not at any increased levels, they are waiting for rates to fall back to their own ideas when they will pounce. As highlighted last week, certain political situations are hampering any positive thoughts from the Indian sub. Continent and therefore we do expect to see this triple of activity to continue for the foreseeable future.

Sadly, there have been reports of an explosion at a Bangladeshi ship recycling yard that has left two workers dead and five seriously injured on the tanker ‘Kelana 4’ that had arrived at the recycling yard earlier this year. Reports suggest that the explosion was caused by sparks during cutting works, igniting gas. This latest incident may bring safety standards at the Chattogram recycling yards back into question after a similar accident in February this year and the Bangladesh government are sure to face renewed pressure to regulate its ship recycling industry. To finish on a positive note, Malta has become the latest nation to accept the IMO’s treaty for the safe and environmentally friendly recycling of ships in conjunction with the Hong Kong Convention, established 10 years ago. They are now the 12th nation to ratify the Convention which is a further step towards the 15 Nations required as per the first of the three conditions for the Convention’s entry into force. Slowly but surely, the steps are becoming more rapid for the Conventions to be ratified and this latest Nation to accede to the Convention truly reflects the international recognition of the considerable improvements and investments made by the many yards in India, and on a smaller scale, upgrades in Bangladesh”, Clarkson Platou Hellas concluded.

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Posted By : Sanju Moirangthem on Fri, 24 May 2019
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