Shadow Fleet Tanker Sold for Recycling in Landmark Deal
(Shipping Inbox Reporter) Bhavnagar, India – In a significant development for the ship recycling industry, Indian shipbreakers have acquired a shadow fleet very large crude carrier (VLCC) for demolition, marking the first such sale of a VLCC from the shadowy holding grounds since 2022. This news comes alongside the purchasing of a 1995-built chemical tanker from Norway’s Odfjell by the same Indian recyclers. Bangladeshi shipbreaking yards are also reportedly involved in acquiring a handysize bulker.
Details of the Deals
According to reports, the dismantled VLCC, the 2000-built ‘Amor,’ was sold to ship recyclers in Alang, India, for a price of $440 per light displacement tonne (LDT). The identity of the buyer remains undisclosed, which is typical for shadow fleet transactions. Shadow fleets are a contentious issue in the maritime industry, as they often raise concerns about the environmental sustainability and safety of vessel operations. Ships placed in shadow fleets are typically older vessels nearing the end of their commercial viability and are often sold to cash-strapped owners who may operate them with minimal maintenance and disregard for safety regulations.
The chemical tanker acquired by Indian breakers is the 1995-built ‘Stordal,’ previously owned by Norwegian chemical tanker giant Odfjell. The purchase price and buyer details for the ‘Stordal’ have not been disclosed. Odfjell is a well-respected name in the chemical tanker sector, and the sale of the ‘Stordal’ likely indicates that the vessel has reached the end of its economic lifespan for Odfjell’s operations.
In addition to these two deals, Bangladeshi shipbreaking yards are reportedly in the process of purchasing a handysize bulker for demolition. Specific details about the bulker, including its name, size, and selling price, are currently unavailable.
Reinvigoration of the Ship Recycling Industry
The sale of the ‘Amor’ VLCC is a positive sign for the ship recycling industry, which has faced challenges in recent years. A decline in global shipping activity due to the COVID-19 pandemic and stricter environmental regulations have dampened demand for ship recycling services. However, the sale of the ‘Amor’ suggests that demand for ship demolition capacity is picking up, potentially indicating a recovery in the global shipping industry.
Environmental Concerns Remain
Despite the positive economic implications, the ship recycling industry continues to grapple with significant environmental concerns. Shipbreaking facilities, particularly in South Asia, have been criticized for their lax environmental practices, which can lead to pollution of air, water, and soil. Additionally, the safety of workers in these facilities is often a cause for concern.
The Role of Regulation
The International Maritime Organization (IMO) has implemented regulations aimed at ensuring the safe and environmentally sound recycling of ships. The IMO’s Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships (HKC) sets out some requirements for ship recycling facilities, including the adoption of environmentally friendly practices and ensuring the safety of workers. However, enforcement of the HKC remains a challenge, and some shipbreaking yards continue to operate outside of its regulations.
The Future of Ship Recycling
The ship recycling industry plays a vital role in the maritime sector by providing a way to dispose of old and obsolete vessels responsibly. However, the industry needs to address its environmental and safety shortcomings to ensure its long-term sustainability. Increased enforcement of regulations, investment in cleaner technologies, and improved working conditions for shipyard workers are all crucial steps towards achieving this goal.
Looking Ahead
The sale of the ‘Amor’ VLCC and the ‘Stordal’ chemical tanker serves as a reminder of the ongoing need for ship recycling services. As the global shipping fleet ages, the demand for ship demolition is likely to continue to grow. However, it is imperative that the ship recycling industry embraces sustainable practices and prioritizes worker safety to ensure its future viability.
Additional Considerations
- The article could be expanded to include a brief overview of the ship recycling process, outlining the steps involved in dismantling a ship in an environmentally sound manner.
- It would also be beneficial to touch upon the challenges faced by shipbreaking yards in complying with environmental regulations, such as the high cost of implementing cleaner technologies.
- The article could conclude with a call to action, urging stakeholders in the maritime industry to work together to improve the sustainability and safety of the ship recycling sector.
