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Demolition Market Still On “Holiday” Mode

Logistic News - Published on Fri, 11 Jan 2019

Image Source: Hellenic Shipping News
Mr Nikos Roussanoglou wrote in Hellenic Shipping News Worldwide that there is a careful optimism regarding a return of more vivid activity in the ships’ demolition market, despite a lacklustre start to the new year. In its latest weekly report, Clarkson Platou Hellas said that “it would appear that the holiday season has continued into 2019 as this year has begun in a very subdued manner with little demand or activity to report. The lack of demand from the recyclers is of some concern at this present time as it is becoming increasingly difficult for an offer to be obtained for any new vessel in the market or for cash buyers with tonnage in their hands for a potential resale – this is the worrying issue from cash buyers”.

The shipbroker added that “this slow start was expected, based on the run up to the holiday season, and it seems we could be in for a stagnated period for the forthcoming weeks. We therefore may only know the true market conditions when all offices re-open again and people return to their desks and are ready to register firm offers again. Looking back over the year for 2018, it has been one of development as we have seen the first H.K. Convention compliant yard established in Bangladesh, certified by Rina Class, due to the innovation made by the PHP family, who believe will start to become more competitive this year to compete against its Indian counterparts. However, the Indian recyclers have not paused in this aspect in making major improvements to their yards, and much praise must also be aimed at them too for their achievements as now, over 76 yards are classified as compliant in conjunction with the H.K. Convention. In addition, there is further hope that one or two leading yards in Alang will be ratified under the EU regulation list for ship recycling for recognition as safe and responsible places to recycle vessels. Time will tell whether the beaching process can be approved for such a move. Two yards in Turkey, operated by the Leyal Group, and one in U.S.A. were the first non-European ship recycling facilities to join the EU List of approved ship recycling facilities under the new European Ship Recycling Regulation and therefore let us hope the Indian recyclers are rewarded for the effort and financial input by also receiving such approvals by the EU. We must congratulate all of the transformations made last year by recyclers and hope that this year proves to be even more prosperous as certainly, last year saw more emphasis on Green ship recycling. With the EU Ship recycling regulation now in place (i.e. European flagged units can only be recycled at EU Ship Recycling approved yards), it will be interesting to see how ship owners react to this new legislation.”

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Posted By : Joykumar Irom on Fri, 11 Jan 2019
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