Ship Recycling – Lloyds Register Report (June 2011)

Abstract

“A minority of owners are now seeking greater control over the conditions under which their ships are demolished and the handling and disposal of non-recyclable materials. And there will be some now who will start to consider the full environmental impact, and cost, of building, operating and recycling ships.”

“But for the present the market is still dominated by practices unchanged for decades. The value of ships at the end of their useful life is dominated by the prevailing freight and sale and purchase markets for ships. The economics of ship demolition and market drivers where demand for scrap steel is highest in the sub-continent, and regional labour markets and regulation that allow beaching, have created a relatively efficient market.”

“The old model is being challenged with a new regulatory framework – the Ship Recycling (Hong Kong) Convention is in place but has yet to be ratified – it will be some time before new, safer, methods become the norm.”