Last week’s news that the IMO’s International Convention for the Control and Management of Ships’ Ballast Water and Sediments (BWMC), has been ratified and will enter into force in 12 months’ time, has sparked plenty of discussion among tanker brokers about the likely ramifications of this long awaited piece of legislation.
“Will the cost of these systems encourage some owners to scrap their vessel rather than take it through another special survey?,” New York broker Poten & Partners mused in a weekly report. “That may happen in certain individual cases. A scrapping decision depends on many factors, including the state and outlook for the market, scrap prices and the general state of maintenance of the vessel. The cost of a BWTS could tip the scale toward scrapping, but will not be the driving force,” Poten concluded.
More assertive was London brokers Gibson who said that the ballast water management ratification combined with a likely sulphur fuel cap by 2020 could have a dramatic effect on the global tanker fleet.
“Both these pieces of legislation will impact on owners in terms of the expenditure required to comply with these regulations,” Gibson noted in a weekly report, adding: “We believe that the impact of both directorates will enhance the prospects for increased scrapping. Once again legislation will have a huge impact of fleet numbers going forward, similar to the impact of the introduction of double hulls in the 1990s.”