SIMIC

A MASSIVE number of ships will be sold for scrap in coming years as environmental mandates make perfectly good ships illegal to operate, reports Hellenic Shipping News Worldwide.

London shipbroker Clarkson Platou Hellas questions whether the EU approved yards have the capacity for the eventual tidal wave of tonnage expected once the new 'Green' emission rules become more stringent.



The answer is No, and it is up to the EU to plan ahead and provide solutions to shipowners, who will definitely face difficulties in the future as to where they can legally recycle their vessels.



It is proving arduous to call market levels as one week there are reports of a dip in rates and then subsequently, price levels bounce back just as quickly, thus grasping the local sentiment proves difficult.



"As freight rates continue to keep tonnage away from the recycling industry, activity looks set to crawl through the summer months, especially with the monsoon season set to begin", said Clarksons weekly report.



Allied Shipbroking added in its own report that "over recent weeks the increasingly competitive prices offered by Bangladeshi yards have ensured that the lion's share of tonnage is headed their way, with sales still able to hit the US$600/ldt for the right vessel.



Allied said Pakistan remains out of the picture, with its one recent arrival 'Era' actually sinking at anchorage offering yet another unwelcome blow to breakers.



Said the Allied report: "In Bangladesh, the government recently rolled back its environmental classification of shipbreaking, which stands to greatly aid shipbreakers ability to quickly process vessels once they arrive offshore."