Ship Recyclers Looking for More Tonnage as Supply Dries Up


Source: Best Oasis
Meanwhile, “Turkey exhibited a degree of stability, with minimal variation in imports. As a result of escalating tensions in the Red Sea and reports of an increasing number of vessels deviating via COGH (Cape of Good Hope), the majority of suppliers in the region are experiencing significantly increased demand, which is causing a severe shortage of available bunker and fully reserved barge schedules, mandating longer lead times than usual. Although there are already concerns increasing in Singapore, it is anticipated that this trend will spread to all other locations as additional vessels continue to refuel in contemplation of the longer voyage in comparison to the Suez route.
The Red Sea waterway, which is linked to the Suez Canal, functions as a crucial trading route and oversees a substantial share of global commerce, including the exportation of oil. Significantly, it constitutes 10% to 15% of the total global commerce and encompasses 30% of the volumes of container transportation on a global scale. The ongoing conflict is having a noticeable effect on the global economy as an approximate reduction of 1.3% in worldwide trade has been estimated for November and December. Furthermore, in its semiannual report, the World Bank issued a warning that disruptions to critical maritime routes are straining supply networks and heightening the risk of inflationary constraints”, Best Oasis concluded.

Source: Best Oasis
In a separate report, shipbroker Clarkson Platou Hellas said that “this week, a sudden announcement emanated from the Ministry of Environment in Turkey affecting any vessel arriving to Aliaga for ship recycling and causing the ship recyclers to rethink their policies when offering for tonnage. A notification was circulated to all local ship recyclers concerning the import procedure of a scrap vessel and according to this, the new application applies to any vessel, no matter what flag or departure port. It states that prior to arrival and pre-landing. permission from the harbour master of Aliaga, several documents are required, the main one being the IHM report (part 1 only). Obviously, as is always the case with any sudden new directive put into place, there are onward discussions internally if these can be eased at all and time will tell if the recyclers hands are untied.

Source: Clarkson Platou Hellas
This was basically put into effect by a recent unproven attempt by the local NGO to stop one vessel entering Aliaga for inward clearance because of unsubstantiated reports about the vessel having toxic paints and other hazardous materials, an attempt at which was quickly ended by the Owner providing sufficient proof that no such materials were included. However, their action has since brought into this new procedure. Elsewhere, recycling buyers in the Indian sub. Continent remain starved of tonnage with the year starting on the backburner in Owners minds due to positive freight/charter rates. There was no change in the Bangladeshi Government following last weekend’s elections as the Prime Minister again won a landslide victory and sworn in for a fifth term. What impact this will have on the domestic financial situation remains to be seen”, the shipbroker concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide