Ship-breaking.com. Special issue, global statement ... - Robin des Bois

Press Release February 3 rd 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 shipbreaking
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 shipyards.
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 worldwide
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 :
contact@robindesbois.org
www.robindesbois.org