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.
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.