WASTE CRIME – WASTE RISKS

The shipbreaking business is driven by economic factors. One
factor is the supply of end-of-life vessels, which has surged in
recent years. This is due to higher environmental standards
applied to the shipping industry, modernization of fleets to
increase efficiency, and the recent phasing out of single-hull
oil tankers, as well as a drop in freight rates since 2009 due
to the economic downturn. For some ship owners it made
more sense economically to send ships for dismantling rather
than keeping them in service. Despite the increased supply
of vessels for demolition, the price offered by ship recycling
facilities has risen in some cases. Shipbreaking companies
can offer approximately USD 400 per tonne (LDT) to ship
owners for dismantling their ships, although this price varies
between recycling locations. According to a report by Robin
des Bois, an NGO monitoring the shipbreaking business,
prices in China have dropped to USD 320 per tonne (LDT),
while they are on the rise in southern Asia, with prices as high
as USD 500 per tonne (LDT) being offered in Bangladesh and
India (2014). The growth of the shipbreaking sector in South
Asia is linked to the growing demand for steel. Depending
on local and global steel prices, the scrap steel recovered in
Goodbye, Exxon Valdez
The famous former oil tanker, which in 1989 was responsible
for leaking more than 41 million litres of crude oil
into Alaska’s Prince William Sound, is now history. After
the accident, the Exxon Valdez was converted into an
iron ore carrier, and it was most recently renamed the
Oriental N. In the spring of 2012, Priya Blue, an Indian
scrapping and salvage company, bought the freighter
for USD 16 million solely for the purpose of scrapping
it. The ship was grounded at high tide on the beach at
Alang in India. There, at the world’s largest graveyard for
ships, more than 300 workers were paid a few rupees a
day to dismantle the vessel. 16
16. Der Spiegel Online (2013). Booming Scrap Business: Ship-Breaking
Lessons from the Exxon Valdez. [Online]. 14/02/2013. Available from:
http://www.spiegel.de/international/business/global-ship-breaking-business-booms-as-container-industry-suffers-a-883122.html
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