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RECYCLING
Despite facing many challenges during the pandemic, ship recycling is showing a healthy growth. However, the industry still has many issues to face
SURGE IN SCRAPPING Recycling activity continued in the first half of the year with 275 cargo vessels sold for scrap, up 40% and 33% compared to 2020 and 2019, respectively, according to information from VesselsValue — although incentivising operators remains an issue The vessels totalled 11.9m dwt with a total scrap value of more than $1bn. 131 tankers were scrapped, accounting for nearly half of all cargo vessels scrapped in H1 2021. The increasing scrapping numbers are a direct result of exceptionally high scrapping rates, which rose and continue to rise throughout 2021, according to the company. The surge in scrapping prices is partly the result of increased steel prices and higher demand, in which the pandemic had a part to play. High earnings for the bulker and container segments meant that many owners preferred to keep ships operating rather than scrapping them, although tanker owners were more likely to take advantage of high scrapping prices, says the report.
C L E A N S H I P P I N G INTERNATIONAL – Autumn 2021
The number of tankers scrapped in the first half of 2021 rose four-fold compared to 2020 and 2019. The total number of tankers scrapped throughout 2020 and 2019 was 92 and 91 respectively. Despite the high scrap prices, high earnings prevented many bulker owners from scrapping tonnage during the first half. Scrapping numbers have remained comparatively low for the first half 2021, down 13% from the same period in 2020. Container scrapping numbers are down 78% from 2020 as the sector benefitted from high earnings. Some seven out of the 10 containerships scrapped this year were small feedermaxes, all 25 years or older. As to the principal yards used, all were affected by issues such as covid-19 cases, yard lockdowns and lack of oxygen supply. During April, Bangladesh, India and Pakistan suffered due to rising covid-19 cases. India was particularly impacted as it saw another set of lockdown restrictions imposed.
