Ship financing banks and Equity investors stress on the importance of responsible ship recycling (as per Hong Kong Convention) for ship owners.Though the recycling activity begins after the duration of loan, an irresponsible scrapping will place the ship owners under defaulters’ list of the banks.
Global economy received a huge blow in demand after explosion of new coronavirus cases. Joining France, Germany and Spain, other majorEuropean countries like England, Greece, Italy, Spain, Belgium, and Portugal are going back into lockdown to battle a second wave of the coronavirus.There seems to be no clear exit plan for the pandemic induced restrictions.
As the freight rates decline across all vessels segment, the Baltic Exchange’s main sea freight index went down for the third straight session.
The IMO and World Tourism Organization emphasized on the socioeconomic benefits of the cruise sector for world economy, especially for Small Island countries which are highly dependent on it for their livelihood.They encouraged various Government bodies across the globe to assist cautious resumption of cruise ship operations.
With the need to push decarbonization of maritime sector, the first LNG fueled PCC built in Japan has entered service.
All eyes around the world are awaiting U.S. election results. By the time this report reaches you, the world may know who is going to head the White House and global stock markets may already be swinging in action!
Dissent between Alang Ship recyclers and rolling mills continues with no resolution in sight. During the time of COVID induced lockdown, the ship recyclers levied a loading surcharge of INR 100 due to non-availability of labours. As the workforce returned at Alang with the relaxation of lockdown, the rolling mills are unhappy with the continuation of loading surcharge. This led to stoppage of all loading from Alang for few days, but as per the latest updates, the market has resumed from today.
Importation of containerized HMS has remained active throughout the week.
The participation of major ship recyclers at the auction of Karnika highlighted the huge appetite of Indian recyclers for luxury cruise liners.The price paid for acquiring Karnika is substantially higher than the prices offered by EU approved yards. It is a significant loss for all stakeholders involved as they get notably lower returns for their vessels.We hope sellers consider selling their ships to HKC compliant yards which is a level playing field for all destinations involved in GreenRecycling.
As the shipping sector grows in the country, the shipping ministry issued a draft Coastal Shipping bill, 2020 to encourage domestic participation.It will make it mandatory for foreign vessels to obtain a license from DGShipping and build whole or part of the vessel in India.
In this week four vessels were sold via Lottery system through the Cartel. The cartel is trying its best to offer the ships available in the market to their local recyclers.
We have learnt through our sources that the cartel is strictly working based on a predefined segment of recyclers in the market:
The power and survival of the Cartel continues to remain a million dollar question!
Recyclers in this region have a good appetite for tonnages, they are very much interested in buying long now because: -
As the shortage of container continues, a local Steel Mill bought a deep-sea cargo, comprising HMS 1&2 (80:20), shredded and plate &structural (P&S) scrap at an average price of $321 per tonne CFR from U.S.
Yet again all prices of Ship plates and HMS in the local market of Pakistan is shrinking in its value, this is solely because demand of finished steel products is decreasing in the domestic market.
An Association dinner took place this week to discuss on local issues and it seems that most of the recyclers have a negative outlook for the future. We believe that this market will remain constantly active for the period of this year and rest is to be seen!
Recyclers in this region have surplus inventories purchased at competitive prices.
Despite a need for correction, recyclers are booking tonnages offered to them at lower price levels.
Due to a subdued demand and a tight supply of shredded scrap from the U.A.E. region, importation of containerized HMS remained silent.
Recyclers in this region have been very aggressive in buying tonnages in this year but presently they have landed down to a situation where in focusing on recycling operations should be a priority over booking new vessels.
Import scrap is at USD 295/MT which is about USD 3/MT higher than its last week’s figure.
No new vessels have arrived at the ship recycling facilities in this week.
With major parts of Europe going into lockdown, the markets in Turkey fear about low supply of scrap and low demand of steel.
A large number of vessels are waiting in cold lay-up as Turkish yards are already full and need some time to clear their backlog.
As a rising number of Cruise ships are being dismantled in Aliaga, the images of broken luxury liners are doing rounds on social media. This situation might see some positive changes as the US-CDC replaced its“No Sail Order” with a “Framework for Conditional Sailing Order” for resumption of passenger ship operations.
Turkish lira declined to a historic low of 8.53 against the US on November 3rd. At present it is being traded at 8.45/USD.
COVID-19 cases are still on the rise with more than 2,300 cases everyday.