GMS Podcasts

Ship Recycling – View from the Bar

In its latest podcast, GMS talks to leading shipping barrister James M. Turner QC of Quadrant Chambers about the challenges associated with scrapping large vessels and the moves towards better standards in India and Bangladesh.

Confirmation last week of Norway’s first jail term handed down to a shipowner for illegal scrapping has turned the spotlight back on the laws governing ship recycling. “It’s a minefield,” admits Turner referring to both the reputation risk and the threat of conventional litigation “if [shipowners] don’t get it absolutely right.”

Quizzed on what shipowners can do to protect themselves when recycling, Turner draws a distinction between a negative and positive approach.

“If you don’t want to be held liable, which is the negative approach, you have to bear in mind that merely because you no longer own the ship when it is taken to the yard, that may not be an answer to a claim brought against you.” He goes on to say, that although not yet tested in court, owners may be able to protect themselves to some extent by “requiring that [the ship] goes to a yard that is Hong Kong certified.”

A more positive approach he says, is to consider your company’s ESG aspirations and “pick a yard that has a good reputation, the right certification” and consider engaging a compliance monitoring service to oversee the dismantling, noting that GMS offers clients’ a sustainable recycling package via its Sustainable Ship & Offshore Recycling Program (SSORP).

Turner says he has sympathy for shipowners with recycling decisions on the table. “You’ve got an asset which can realise some money at the end of its life” and suggests owners should plan accordingly as their vessels approach end of life. Owners who fall foul of the law and find themselves with their “foot in the trap” do so with their eyes open he says, now that “it’s perfectly possible to do the right thing”.

Changes in the way ships are recycled at the waterfront is happening “as recycling yards come to experience that there is money to be made in doing a job properly”. Turner points to “so much of the world’s tonnage” that will be pushed towards recycling in order to meet the climate change goals.

Ship Recycling Global Market Report | March 21st 2022

GMS’ weekly round-up of the ship recycling markets in India, Pakistan, Bangladesh, and Turkey. 10 minutes or less of the key talking points covering demo prices, trends, and notable vessel disposals.

This week Jon Chaplin talks to GMS Senior Trader Vagelis Chatzigiannis about the challenges of scrap price volatility, market corrections, a return to confidence in Alang, and the reasons for prices edging towards an eye-watering USD 500/LDT in Turkey.  

Ship Recycling Global Market Report | March 14th 2022

GMS’ weekly round-up of the ship recycling markets in India, Pakistan, Bangladesh and Turkey. 10 minutes or less of the key talking points covering demo prices, trends and notable vessel disposals. This week Jon Chaplin talks to GMS Trader Faidon Panagiotopoulos about record prices, end buyer hesitancy, market corrections, why more ships are not coming to the market, and much more.

Maritime sanctions against Russia – a moral and commercial minefield

Leading maritime lawyers discuss the challenges for shipping posed by an “unprecedented” range of maritime sanctions against Russia. What do sanctions mean for chartering contracts, sale and purchase, KYC and staying on the right side of OFAC.

Ship Recycling Global Market Report | March 7th 2022

GMS’ weekly round-up of the ship recycling markets in India, Pakistan, Bangladesh, and Turkey. 10 minutes or less of the key talking points covering ship demo prices, trends, and notable vessel disposals. This week Jon Chaplin talks to GMS Trader Jamie Dalzell.

The Shipowners view – Ship Recycling rules, residual values and the (WSR) review.

Guests: 

Lieve Logghe, Chief Financial Officer, Euronav 
Gudrun Janssens, Head of Environmental & Technical Affairs, Royal Belgian Shipowners Association 

We talk to Euronav CFO Lieve Logghe about how the company was able to reduce its depreciation by Euro 100m and steel’s role in the circular economy. And hear from Ms. Janssen about the progress of ship recycling regulations and the sustainability (or not) of proposed changes to the EU WSR.  

Shipping financier Morten Artzen opens up on the prospect for a tanker market revival and his impressions from Alang

Ship financier Morten Arntzen kicks off our podcast series with a realistic assessment of the tanker market, the need for scrapping and the challenges and opportunities for shipping presented by EEXI and the EU ETS. He talks candidly about his impressions from visiting HKC compliant yards in Alang. Plus what advice he would give to his 25-year-old self.

Introduction

GMS is the world’s largest cash buyer of ships and offshore assets for recycling. We help our clients achieve their residual value expectations and ensure the safe and environmentally sound demolition of their vessels. We offer free training to recycling yard workers in India, Pakistan, and Bangladesh through our Sustainable Ship and Offshore Recycling Program.

We at GMS are avid consumers of podcasts and absolutely love them. We feel lucky to work in shipping, we love what we do, and we like talking about it. 

In GMS podcasts, we will be discussing the big picture issues of crew welfare, De-carbonization. ESG, Ship Recycling, Supply Chain crisis, etc. There will be discussions with people whose ideas and actions today are shaping the shipping industry in 2030, 2050, and beyond. We will also cover something close to our hearts and probably to every shipowner's - Residual Value.