Page 16: of Maritime Reporter Magazine (June 1992)

Low Freight Rates &

Higher Standards Send

Monthly Scrappings Up

A continuing slump in interna- tional freight rates along with higher ship chartering quality standards have persuaded more shipowners to scrap their vessels, according to a report from the shipbrokering firm of Howard Houlder & Partners, Ltd., of London.

The report indicated that shipbreakers purchased 18 tankers, dry bulk and combination carriers totaling 1.5 million deadweight tons in April, as opposed to 910,000 dwt in March and even less at the begin- ning of the year.

A total of 48 vessels have been sold for scrap this year, amounting to 3.2 million dwt, compared to 90 ships of 4.5 million dwt over all of 1991. Altogether, 30 tankers have been sent to the breakers yard this year, versus 38 in the previous year.

Part of the increase in tanker demolitions can be attributed to tightening international standards on tanker operations in response to environmental concerns. As a re- sult, charterers are more inclined to seek newer tanker tonnage that meets these standards and reduces their liability, forcing older vessels out of the market.

However, despite the increase in scrappings, low scrap prices and the high price of new ship construction are forcing many shipowners to keep vessels in service that would nor- mally have been withdrawn by now.

The average age of the world mer- chant fleet is almost 13 years old, with more than 50 percent of the international tanker fleet at least 15 years old, creating an urgent need for new ship tonnage.

High labor costs and an expand- ing economy have almost eliminated

Taiwan from the shipbreaking mar- ket, after accounting for almost 45 percent of world ship scrappings in 1985.

Crowley Offers To Donate

Cranes To Port Everglades

Crowley Maritime Corp. has of- fered to transport, refurbish and install two cranes at no cost to the

Port Everglades Authority. The cranes would be installed at the port's Southport container terminal.

At the present time there are three existing container cranes at the ter- minal and three more are scheduled to be delivered sometime around the end of the year.

Crowley has operations at

Southport, which presently func- tions as a roll-on, roll-off terminal.

The company offered the two cranes to the port authority because Sea-

Land is considering moving to

Southport, and Crowley feels that, even with the addition of the new cranes, they may not always have access to the cranes. The conditions which Crowley would impose are that they would have first rights to the cranes but that other lines could also make use of them.

The new cranes are being built by

Samsung Cos. of South Korea and will have a total cost of about $24 million.

Freight Rates Surge

For VLCCs And ULCCs

Recent freight rates for VLCCs and ULCCs have surged, with the increase in demand for oil shipments from the Middle East reported to be the cause.

However, it is possible that the recovery may not last because of the large number of vessels arriving in the Persian Gulf.

Where earnings were previously severely depressed, some owners have now reported that their daily earnings have more than doubled.

These increases are mainly focused on VLCCs and ULCCs. Owners of smaller tankers are still reporting depressed levels.

The Foremost

Domestic Manufacturer of

High Quality Stainless Steel, Non-Ferrous

Bolts, Screws and Special Cold Formed Parts

Manufacturing Company, Inc. 1200 Airport Road PO Box 704/750 Fall River. Massachusetts 02722-0750 USA

Phone 508 675-2555 FAX 508 677-0494

Circle 155 on Reader Service Card Circle 164 on Reader Service Card 18 Maritime Reporter/Engineering News

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Secretary of Tteafurer

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