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Ship demolition hits 13-year high

Ship demolition hits 13-year high
Ship demolition rose to the highest in 13 years in 2009, as owners scrapped aging vessels to make way for a record number of new ships being built, Clarkson Research Services Ltd said in a report.

Ship demolition hits 13-year high.

Ship demolition rose to the highest in 13 years in 2009, as owners scrapped aging vessels to make way for a record number of new ships being built, Clarkson Research Services Ltd said in a report. Scrappers in Bangladesh, India, Pakistan and elsewhere bought 1,014 ships with a combined carrying capacity of 31.5 million deadweight tonnes, said Clarkson Research, a unit of the world's biggest shipbroker. That's double the 2008 tally and the most since 1996, it said.

Charter rates for commodity carriers as measured by the Baltic Dry Index plunged 59 per cent to average 2,617 points last year as the global recession curtailed demand for raw materials, according to the London-based Baltic Exchange. Crude oil tanker costs lost 62 per cent, averaging 581 points, according to the exchange.

Total demolitions will advance to 53.3 million tonnes this year, led by a more than fourfold increase in scrapping of oil tankers, Clarkson estimates. Single-hull oil carriers face trading restrictions this year under environmental rules from the International Maritime Organization.

The biggest component of demolition last year was commodity carriers, with 10 million tonnes of capacity removed, the Clarkson data show. Oil tankers accounted for 8.4 million tonnes and the remainder was split across different vessel types.

Indian scrappers bought the most vessels for demolition at 393 ships while Bangladeshi yards accounted for the biggest slice of carrying capacity, at 10.3 million tonnes, according to Clarkson, which is part of London-based Clarkson Plc.

www.turkishmaritime.com.tr

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