Green recycling picks up as price differential narrows

Green recycling picks up as price differential narrows

Despite China’s imminent exit from the international ship recycling scene, Clarkson Research is reporting a significant uptick of inquiries for green vessel recycling options.

“More owners are making enquiries in relation to this and several are sending delegations to the recycling destinations (mainly in India) to witness first-hand the improvements that have been made,” Clarkson Research noted in its most recent weekly report.

The price differential between ‘green’ and ‘non-green’ yards has significantly reduced as the number of yards making improvements to achieve ‘green’ accreditation increases, Clarkson Research pointed out.

At the moment, container ships are leading the way in terms of shipbreaking activity with Bangaldesh buyers proving the most aggressive on price. Diwali festivities in India are expected to temper Indian breakers for the coming week or two.

At the end of this year China will cease to take foreign ships for recycling. The country had led the way in terms of breaking up vessels in a more environmentally friendly way.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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1 Comment

  1. Henning Gramann
    October 29, 2018 at 5:42 pm

    Pricing still heavily depends on final destination. The standards implemented not so much. What we can see is a green overcapacity and depending on recyclers strategy, to shut down or keep his yard running depending on ships in the market, as well some pressures from the banks, the HKC-compliant recyclers simply have to buy, even though their compliance costs are not covered. That will not work in the long term, currently it is an advantage for the few owners who take it seriously but the green market needs some levelizing and definately more responsible owners.