Ship scrapping math changing for vessel owners
Ship scrapping math changing for vessel owners
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The world’s cargo fleet owners have only slowly increased their shipbreaking activities since a low point reached in 2019. However, a recent analysis finds the number of vessels about to be sent for scrapping could soon increase considerably.
In an article by Richard Scott of United Kingdom-based Bulk Shipping Analysis for the Greece-based Hellenic Shipping News, Scott writes, “Recycling activity within the world merchant ship fleet has been generally subdued in recent years. But signs point to much larger future volumes of vessels being consigned to shipbreakers’ yards.”
Although vessel owners have “been reluctant” to scrap large portions of their fleets in the past few years, Scott says since 2008 the global fleet’s capacity “has grown by over four-fifths, emphasizing how scrapping has proportionately receded.”
The analyst says predicting the exact timing of when vessels will be scrapped is difficult because short-term service needs can fluctuate suddenly. Beyond supply and demand factors, however, Scott says “tightening regulations in the next few years” involving emissions targets will almost certainly boost ship scrapping volumes.
Writes Scott, “The large extra spending necessary to ensure that a vessel complies with new regulations entering into force, especially those governing energy efficiency and carbon emissions, will impose another financial burden, probably resulting in more scrapping.”
Figures maintained by U.K.-based VesselsValue indicate Bangladesh has become the leading destination for shipbreaking and recycling, with regional neighbors India and Pakistan second and third on the list of ship recycling activity.
The full article by Scott can be viewed on this web page.
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Source: Recycling Today
Ship scrapping math changing for vessel owners
<![CDATA[The world’s cargo fleet owners have only slowly increased their shipbreaking activities since a low point reached in 2019. However, a recent analysis finds the number of vessels about to be sent for scrapping could soon increase considerably.In an article by Richard Scott of United Kingdom-based Bulk Shipping Analysis for the Greece-based Hellenic Shipping News, Scott writes, “Recycling activity within the world merchant ship fleet has been generally subdued in recent years. But signs point to much larger future volumes of vessels being consigned to shipbreakers’ yards.”Although vessel owners have “been reluctant” to scrap large portions of their fleets in the past few years, Scott says since 2008 the global fleet’s capacity “has grown by over four-fifths, emphasizing how scrapping has proportionately receded.”The analyst says predicting the exact timing of when vessels will be scrapped is difficult because short-term service needs can fluctuate suddenly. Beyond supply and demand factors, however, Scott says “tightening regulations in the next few years” involving emissions targets will almost certainly boost ship scrapping volumes.Writes Scott, “The large extra spending necessary to ensure that a vessel complies with new regulations entering into force, especially those governing energy efficiency and carbon emissions, will impose another financial burden,…