A Green Re Incarnation - · PDF fileWhat they also bring are fabulous bargains for shoppers at the Great Alang Bazaar. From furniture and gizmos, to engineering goods, the range of

Ship Recycling Industries Association (India)

AlangA Green Re‐Incarnation

Issue No. 6 I June 2014

Foreword

While the ship is destined for demolition not all of its components, necessarily have reached the end of utility.

The entire process of Ship Recycling is effectively a “Salvage” of material, value, and the human enterprise and effort to create the ship and its equipments. The steel and metals go back to being steel and metal. The Ships Machinery however can be destined for reuse.

The technology used on board goes through intensive scrutiny for quality, performance and longevity. Therefore no cost is spared in outfitting a Ship that has to continuously face the elements. It is generally believed the standard of ships equipments is technologically Ten years ahead of normal standards of country where built, hence for the Indian Market much of the equipment is very much usable, and offers an opportunity to acquire high value machinery and parts at very cost effective prices.

Like many of the recoveries from Ship recycling, an entire community and Market has evolved over the years supplying to all parts of the globe and more specially to the Indian Market. Many of the Indian and foreign users would find it difficult to acquire such materials at original, new prices, or be able to logistically procure them.

Bhavnagar and Alang are very much on the minds of all Shipping Companies, World over as the ultimate source for marine equipments and parts. People in this trade, professional Marine Engineers to people comprising from all walks and trades of life have adopted this business and distinguished themselves for their ingenuity, knowledge, resourcefulness and are continuously expanding their horizons . Many ships and factories owe their very continuity to the support and efforts of this enterprising community.

By : , Executive Committee Member, SRIAAsif T. Khanbhai

Issue No. 6 I June 2014 Ship Recycling Industries Association (India)

Editorial


Luminaries of SRIA

Haresh ParmarHon. Jt. Secretary

Sukesh AggarwalHon. Jt. Secretary

Rajneesh BansalChairman, LPG Plant

Kapur BansalHon. Treasurer

Nitin KanakiyaHon. Secretary

Ramesh AggarwalHon. Jt. Secretary

Jivrajbhai PatelPresident

Ramesh MendparaVice President

V. B. TayalVice President

Dear Readers,

Greetings!!!

“Alang- A green Re-incarnation” the name of our magazine is associated with Recycling of almost all goods obtained from the ships and giving a new form after the recycling of the obtained goods.

In this edition we have covered at a glance the Trade & Industry of Ship Machinery and Parts obtained from Alang Ship Recycling Yard. The vessels which come to the shipyard at Alang, bring with them the wealth of steel and metal for the Ship Recyclers. What they also bring are fabulous bargains for shoppers at the Great Alang Bazaar. From furniture and gizmos, to engineering goods, the range of specialized equipments and products used on ship is available for sale when a ship is recycled. These products obtained from vessels can be used effectively for longer period.

We are grateful to Mr. Ramesh Doshi, President, Alang Ship Machinery Association for sharing the history and his views of this unique industry.

SRIA is always monitored from many angles especially for practices followed for Safety & health and environment protection. In this view recently a team of National Human Rights Commission headed by retired Chief Justice of Supreme Court of India Shri K.G.Balakrishnan, Chairperson, NHRC, visited Bhavnagar and Alang on May 25th, 2014 and May 26th, 2014 respectively.

In this edition we have attempted to update our readers on how the markets tend to be in the current scenario and the effects of landslide victory of new government led by Shri Narendra Modi, on the ship recycling industry. The issue also covers the final journey of India's first aircraft carrier, INS Vikrant.

Last but not the least, for ready reference the news and few facts for G.K are shared for our readers.

Have a great Reading!!!

With thanks and warm regards,

[email protected]

EditorShip Recycling Industries Association (India)

Ramesh AggarwalHon. Jt. Secretary

Sukesh AggarwalHon. Jt. Secretary

Rohit AggarwalExecutive Comm. Member

Anita BaradExecutive Secretary & Editor

Editorial Advisory Board

Asif T. KhanbhaiExecutive Comm. Member

Rajneesh BansalChairman, LPG Plant

Content


Ship Recycling Industries Association (India) 6

Cover Story 11( )

Ship Breaking Industry 15

Trend Report 20

News and Updates 23

Beaching Report 25

Tide Time Table ( July / August / Sept. - 2014 ) 26

On a Lighter Note 29

Ship Machinery & Parts Trade from Alang Ship Recycling Yard

Ship Recycling Industries Association (India)206, Turning Point, 2 Floor, Waghawadi Road, Bhavnagar, Gujarat-364001

Tel: (0278) 2428696, 2439334, 3001853 www.sriaindia.com • E-mail: [email protected], [email protected]

nd

Ship Recycling Industries Asso. (India)

6Issue No. 6 I June 2014 Ship Recycling Industries Association (India)

Visit of National Human Rights Commission to Alang Ship Recycling Yard

Felicitation and presentation to National Human Rights Commission by SRIA

Visit to Alang Ship Recycling Yard and discussion with the members

National Human Rights Commission team headed by honorable retired Chief Justice of Supreme Court of India Shri K.G.Balakrishnan, Chairperson, NHRC, visited Bhavnagar and Alang on May 25 , 2014 and May 26 , 2014 respectively and left no stone unturned, spared enough of their valuable time visiting ship recycling yards, Training Institute of Gujarat Maritime Board, Justice Diwan Hospital building, Red Cross Centre and also met trade unions, ship recyclers and various government authorities monitoring the yard.

SRIA presented the glance of the Ship Recycling activities carried out at Alang Ship Recycling Yard, importance of the Ship Recycling activities and awareness for safety & Health.

th th


SRIA members visited New Sachivalay Gandhinagar

World Environment Day 2014

Beach Cleaning at Alang-Sosiya Ship Recycling Yard

A team of 11 member headed by Shri. Jivrajbhai Patel, President-Ship Recycling Industries Association (India) visited New Sachivalay, Gandhinagar on June 03, 2014 to greet the incumbent Hon'ble Chief Minister of Gujarat, Smt. Anandiben Mafatbhai Patel and met Hon'ble Cabinet Minister Shri. Saurabh Patel Dalal.

SRIA organized various activities related to environment conservation and safety with a pledge to continue to observe and spread awareness for environment protection and eco-conscious growth.

Proper procedure for collection and disposal of waste generated is very well practiced and implemented. With an aim to create awareness to control and prevent littering of waste, a campaign was organized to clean the individual plots, creek areas as well as open land/waterfronts on both ends of the yard of Alang-Sosiya every year on World Environment Day.

The World Environment Day 05 , June 2014 was celebrated by Ship Recycling Industries Association (India) along with Gujarat Maritime Board and Gujarat Pollution Control Board. All the members of SRIA actively participated in the celebration and promoted the concept of “Green Ship Recycling”.

The participants awarded with certificate of participation by GPCB & GMB. Also 10 plots were awarded by a trophy for maintaining the Best Cleanliness of the plots & green environment at the plot and its surroundings.

th



Award distribution session after Beach Cleaning



Representing the Alang Ship Recycling Industry at International summits

Other activities at Alang Ship Recycling Yard

Ship Recycling Industries Association has always participated in many international conferences / summits, such as, Annual Tradewinds recycling conference at Dubai, 8th Annual Ship Recycling Conference at London, Tradewinds Ship recycling Forum 2014 at Singapore.

Members of Ship Recycling Industries Association will also represent SRIA in the " at China on 3 -4 July, 2014. SRIA will present the Overview of ship

recycling market in India & South Asia.

Modern Technology is replacing and changing the way we used to do most things. Today, almost every human activity is being affected by modern technology. However, technology will not replace each and every human activity, but it will influence on how we carry out those activities. SRIA always gives importance to the improvement in work culture and upgrade with the modern technologies. These rapid developments in technology are in some ways responsible for the increased requirement for training programmes.

In this view, recently a workshop for technical discussion and demonstration on a new breakthrough technology “Laser Induced Breakdown Spectrometry (LIBS)” Hand held analyzer for rapid sorting and screening of different metal alloys was organized by Oxford Instruments India. LIBS is the latest path breaking handheld analytical technique for rapid metal sorting and analysis. The session consisted of Product launch and technical discussions for Metal sorting and alloy identification with Demonstration.

6th Asia Ship Recycling & SNP Summit" rd th

Demonstration of “Laser Induced Breakdown Spectrometry (LIBS)”


(A unit of M/s. Shyam Steels Pvt. Ltd.)

Dealers & Exporter of Marine Equipments - D.G.Sets,

Main Engines, Auxiliaries & its Spares

F. O. Based Captive Power Plants (2 M.W. to 8 M.W.)In single unit and Multiples there of

Online / Stand-by / On rent / Lease / Hire

'Shyam', 2264-B, Hill Drive, Bhavnagar - 364 002Tel. : 0091-278-2573951 / 52 / 53

Office

18th K.M. Mile Stone, Bhavnagar - Alang Road, At Village Nagdhaniba, Dist. Bhavnagar Tel. : 0091 278 2881380

Works

E-mail : [email protected], [email protected]

Cover Story


When a ship comes to end of the days, it is taken apart to its every last valuable ounce of metal, and recycled. Alang yard recycles more than half of all ships salvaged around the world.

A vibrant industry has sprung up at Alang, selling every reusable part found in a ship, ranging from furniture to crockery, carpets, consumer goods such as television sets and refrigerators and all kinds of knick-knacks. Nearly a thousand shops dot the main road selling used goods. Boats, gym equipments, video games, nav igat ion equipments, machine parts, tools and heavy machineries are also found in abundance. This has turned Alang into a hot destination for large and small businesses.

Ship recycling yards are the primary source to obtain secondhand machinery for m a r i n e a n d i n d u s t r i a l application. Alang is world's largest ship recycling facility, scrapping about 400 ships annually and generating a huge amount of machinery and parts of various segments. Ships built in different part of world are coming for recycling which gives opportunity to avail a wide range of products of different makes, types and sizes.

After the successful completion of its tenure the vessels are sent to recycling yard for various

reasons such as due to old age, insurance constrains, class disapproval and also due to sluggish market condition. However, the ship's machineries in 75-80% of the ships scrapped are in excellent re-usable condition.

Machinery is the most important element in ship. So when a ship is scrapped, what happens to its machinery? Most of it is salvaged for sale as secondhand units and parts for re-use, which fetch significantly higher price than scrap and that grants ship recyclers a kind value addition to feasibility. Prices of secondhand machinery

depends upon its model, condition and demand in market, suitability for local industrial application etc.

Manufacturers of machineries are spending millions on R&D to develop advanced technology in terms of higher performance, increased fuel eff iciency, add it iona l safe ty, lower maintenance, reduced pollution and overall low running cost. In this process manufacturers time to time develop new models for new building ships and so the old models are discontinued from production. Also the inventories of these old model parts are not a v a i l a b l e i n t h e o p e n market/OEM dealers once the company phases out production o f t h e s e s o l d m o d e l s . Manufacturers can produce these parts on specific order but which would need long delivery

11

Ship Machinery & Parts Tradefrom Alang Ship Recycling Yard

Courtesy: Shri Ramesh DoshiPresident

Alang Ship Machinery Association

Cover Story

Issue No. 6 I June 2014 12

time and at extraordinarily high cost. This is where the Alang market steps in and fulfills this demand for old and new parts.

Ship has two types of requirement of parts and machinery. One is routine maintenance where requirement is pre-calculated & planned and the other is emergency requirement. If the vessel has a sudden break-down in machinery and such parts are not in production or on inventory with the supplier then it would lead to the vessel being held up and put ship owner in a desperate position. In such situations, secondhand parts obtained from ship recycling yard may be the best option to cater to this emergency requirements. In such situations, small to huge volume parts have been known to be air freighted to the various destination around the globe.

Owners of such older ship have limited budget, thus, purchase of new parts from manufactures would be extremely expensive for them. In such situation, secondhand parts from Alang would not only be cost effective but also would be preferable when owner intends to run the ship for a short period.

It is very common that sister ships are manufactured having all identical machineries. It is therefore logical for ship owners to procure all the required parts from the sister vessel which being scrapped.

In 2013, an association of machinery traders from Alang was formed under banner

“Alang Ship Machinery Association” having more than 70 registered members. This association is actively performing to achieve the fundamental objectives like friendly and fair business practice between members and with other clients, to gain the trust of domestic and international clients towards suppliers from Alang, to have undisputed business practice with ship recyclers etc. and Mr. Ramesh Doshi is justifying his portfolio as The President of this association to achieve its goals.

Machinery can be categorized as new, recondition or secondhand. Ship contain variety of machinery including engines, generators, compressors, separators, filters, pumps, refrigeration equipment, hydraulic items,

t u r b o c h a r g e r s , h e a t exchangers, fresh water generators, anchors, chains, deck equipment, navigation and safety equipment, automation equipment, electronics and life saving equipment, consumable stores, workshop machinery, cranes, winches, governors, turbines and many more. Some of the most popular makes in this field are Wartsila, Man-B&W, Sulzer, MAK, Deutz, Pielstick, Mitsubishi, Daihatsu, Yanmar, Bergen, Niigata, Stork, MWM, Hanshin, Ruston, Crepelle, Mirr lees, SKL, Caterpillar, Detroit, Allen, ABB, IHI, Holset, Napier, Sperre, Hamworthy, Tanabe, Hatlapa, Sauer & Sohn, Atlas capco, Alfa-Laval, Westfalia, Carrier, Sabroe, Daikin, Bitzer, Bock, Stal, York, Desmi, Naniwa, Shinko, Teikoku, Heishin, Iron,


Cover Story

Issue No. 6 I June 2014 13

Thune Eureka, Rexroth, Kawasaki, Norwinch, Hagglunds, Fukushima, Kayaba, Vickers, Parker, Denison, Volvo, McGregor, Nirex, Atlas-Sasakura, Furuno, JRC, Sperry, Anschutz, Raytheon, Kelvin Hughes, Yokogawa, Koden, Sailor, Dainichi, Woodward, Zexel, Diesel Kiki, and many more. (Duly apologize for any name being left out)

Ship breaking yard is generating secondhand parts which are purchase by the local traders. Some of them are selling it for marine application to local or international shipping companies. Some of them are selling machineries to local industries for various applications. Marine institutes also purchase required machinery for the training purpose of new seafarers. Traders from Alang are selling parts and machinery in the form of secondhand, overhauled or reconditioned. Depending upon the contractual c o n d i t i o n b e t w e e n buyers/sellers, machinery and parts, before they are supplied, go through rigorous testing p r o c e d u r e a s p e r t h e requirement laid down in the contract.

Ship machinery and parts t r a d i n g b u s i n e s s h a s re ma rk ab l e g ro wt h a nd development in Alang. Several traders have developed well ma inta ined warehouses , inventories and facilities. Some traders are maintaining stock and some traders are working on inquiries. The trend has always increasing demand of

superior technical services and reliability. Traders in this field are continuously being educated, gett ing exper ience and implementing improvements to meet at par with sophisticated customer's expectations. Like all other business, this trend is also facing competition from suppliers of other countries having ship recycling activities, like Bangladesh, China and Turkey. Additionally there is tough competition from the manufacturers who copying parts at various locations. Indian suppliers have remarkably gained recommendation of worldwide shipping community in supply of secondhand and recondition parts.

Secondhand machinery and parts trade in Alang is also supporting many directly and indirectly

r e l a t e d t r a d e s l i k e transportation, workshops, classification society, logistic and provide employment to thousands of labour, engineers and technicians. A big share of sales goes towards export of such machinery thus achieving a huge inflow of foreign currency w h i c h c o n t r i b u t e s i n s t re ngt hen i ng co unt r y ' s economy.

This trade has gone through a golden period before 2008, when the freight market was at its all time high and there was a huge demand for these machineries and parts at Alang from the shipping industry. Now with a new era of ships coming for demolition, yet newer machineries are coming in to the market, posing new challenges for the SMB.


R.R. Trading (India) is a Stockist and Exporter of Oil Separator, Plate Heat Exchanger, Fresh Water GeneratorOil Mist Detector, IMO Pumps, Governor, Automation Equipment and Spare Parts for Auxiliary Engine

NORSKAKKREDITERING

MSYS 007

AN ISO 9001:2008 Certified by

R. R. TRADINGAN ISO 9001:2008 Certified Company

Successfully completed 15 years of Sales & Services

Exporter of Ship's Machinery & Spares(Specialist of Oil Separator, Heat Exchanger & IMO Pumps)

Office : 302, "Krishna Darshan", Parimal Chowk, Waghawadi Road, Bhavnagar - 364 002, Gujarat, INDIAWorks : Plot No. 33, Survey No. 174, Near Bhagyalaxmi Rolling Mill, Mamsa (Dist. Bhavnagar)

Tel. : +91-278-2438293 Fax : +91-278-2519868 Cell : +91-9825207585E-mail : [email protected] • www. alangshipmachinery.com • www. rubymarine.net

MARINE PRODUCTS

Marine Oil Separator / Oil Purifier / Marine & Industrial Centrifuge

Plate Heat Exchanger / Oil Cooler / Sea Water Cooler

Fresh Water Generator / Evaporator / Water Maker

Main Engine & Diesel Generator Set & it’s Spare Parts.

Turbocharger & It’s Spares

Air Compressor

Oil Mist Detector & Automation Instruments / Governor

MINERALS & SALTBentonite Products

Salt

Ship Breaking Industry


Scrapping hits new highs, yet fails to keep pace with ship deliveries

Vessel arrest highlights need to ratify Hong Kong Convention on ship recycling

CONTAINERSHIPS bound for scrap are destined to reach a record high this year yet still new capacity will coming from the yards will continue to outweigh that deleted by a long shot, says Alphaliner.

In the first four months of the year 212,000 TEU was demolished, an increase of 27 per cent compared to the same period last year.

The peak summer shipping season is, however, expected to offer a short respite, slowing down the pace of scrapping over the next three months.

Yet total deletions are still calculated to hit 500,000 TEU this year, up from 463,000 TEU in 2013 driven by the unprecedented number of deletions of ships larger than 4,000 TEU.

Thirty four ships ranging in size from 4,000 to 5,300 TEU have been scrapped since the start of the year, compared to 18 units for the whole of 2013 and 13 ships in all previous years.

At least a dozen more ships of this size are likely to be broken up before the end of 2014.

The average age of the vessels scrapped this year is also expected to reach an all time low. The average age for containership scrapping stood at 28 years between 2000 and 2011.

In 2012, the average age of scrapping dropped to 23 years and slipped further to 22 years in 2013. Of the total 70 vessels scrapped so far this year, their average age has slid further to 21 years, with the larger box ship of over 4,000 TEU being scrapped at an even younger age of 20 years.

Hanjin Shipping, Cosco and Maersk are leading the way in the demolition of under-aged ships of more than 4,000 TEU, having scrapped 23 of the 34 units between them, including nine for Hanjin.

Despite the record level of ships scrapped, new containership deliveries have continued to outpace the deletions. Vessel deliveries reached 538,000 TEU in the first four months of 2014, surpassing the scrapping of old ships by a ratio of 2.5 to one.

One million TEU of new capacity is due to be delivered between now and year-end and will expand the global containership fleet by 5.6 per cent in 2014. http://www.seanews.com.tr)

The detention of the Global Spirit in Antwerp shows that ship recycling must be regulated by common, global, practical and effective rules, writes GMS non-executive director Nikos Mikelis

The detention of the Liberian-flag, 45,500-dwt car-carrier Global Spirit (built 1987) in Antwerp last Friday following allegations by environmental activists that the ship was about to violate the European Union (EU)'s waste shipment regulation shows that European authorities still persist in enforcing an ineffective and counterproductive regime to end-of-life ships. It also reveals a lack of

(Source:

15


Issue No. 6 I June 2014 Ship Recycling Industries Association (India)16

understanding by the shipping industry of the intricacies of the current complex web of international and regional legal requirements.

The circumstances of the detention are not complicated. The patience of the non-governmental organisation (NGO) Platform on Shipbreaking activists paid off as they once again identified, through press articles and Equasis, a ship due to depart from an EU member state destined for recycling in a non-OECD (developing) country.

The activists rely on the regulation, which is the regional implementation of the Basel Convention and of the internationally not-in-force Ban Amendment, forbidding the export of hazardous waste to developing countries. Whereas the regulation is good for controlling the export of hazardous waste, it becomes deeply flawed when regulating end-of-life ships. The very few cases of its enforcement to such vessels have been disastrous — for both the regulator and the regulated. In fact, this is why Europe had to develop the new EU Ship Recycling Regulation, which came into force in December 2013, and which appears to closely follow the as yet not-in-force 2009 Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships (Hong Kong Convention).

The new regulation (Article 27), when fully applied in the near future, excludes EU-flag ships from the requirements of the waste shipment regulation but does not exclude non-EU-flag vessels.

Owners of non-EU-flag ships intending to recycle their vessels now or in the future will have to walk a tightrope when trading in EU ports so as not to fall prey to the activists, who see their role in enforcing the Ban Amendment to ship recycling and also in banning beaching.

Other than Turkey, no other recycling country can satisfy these demands, notwithstanding that ships are beached in Turkey and that there are a number of high-quality yards in China and India. Even corporately socially responsible owners with policies for green and safe recycling in force — as in the case of the Global Spirit — are, and will remain, liable to falling foul of the witch-hunt that the waste shipment regulation affords to activists (according to the contorted logic of enforcing this regulation to ships, a Chinese-flag ship departing a European port for recycling in China should be detained).

The port-state authorities of EU member states seem to have no choice but to implement this European law, especially when pressurised by the activists through the media.

Ironically, the Global Spirit is not a clear-cut case of violation as, on departing Europe, she was destined to go to a West African port with a cargo of cars and not, as alleged by the NGO, to India for recycling. The wording in the regulation that could be used to define the ship's voyage is unclear and only the interpretation of a court would be final.

The Global Spirit is a harsh reminder to countries of the urgent need to ratify the Hong Kong Convention so that ship recycling may be regulated by common, global, practical and effective rules.

While witnessing the europolitics surrounding this vessel detention, we can at least rejoice at the accession on 19 May by the Republic of Congo to the Hong Kong Convention.



Congo, while not a major flag or recycling state, was one of two nations that had strongly opposed the recognition of the Hong Kong Convention as equivalent to the Basel Convention at the 10th Conference of the Par t i es to the Basel Convent ion in 2011 . (Source:

, 13 June 2014)

INS Vikrant, India's first aircraft carrier was acquired from Great Britain and commissioned on 04 Mar 1961. In its 36 years of glorious service INS Vikrant was at the centre of action in the 1971 operations for liberation of Bangladesh. Having seen many years of service as a CATOBAR (Catapult Assisted Take Off but Arrested Recovery) carrier working an angled deck and operating Sea Hawks, Alizes and Seakings, INS Vikrant was transformed into a STOVL carrier to operate Sea

Harrier jump jets. INS Vikrant was decommissioned on 31 Jan 1997, after 36 years of glorious service under the Indian ensign. On 28th May 2014, four naval tugs pulled the legendary ship out of the naval dockyard and towed her into civilian waters towards the Mumbai ship recycling yard. Two fast-attack craft of the Navy, besides a Chetak helicopter, accompanied INS Vikrant on her last journey. Admirals from the Western Naval Command were

present to see her off.

Of the several aged vessels that come to the Mumbai ship recycling yard at the end of their seafaring lives, perhaps no other had been greeted with the same enthusiasm as INS Vikrant.

The International Maritime Organization (IMO) and the Government of the People's Republic of Bangladesh have signed a landmark agreement to work together to improve safety and environmental standards in the country's ship-recycling industry.

A Memorandum of Understanding formalizing the cooperation between the two was signed by Mr Nicolaos Charalambous, Director, Technical Cooperation Division, IMO and Mr Md. Ashadul Islam, Additional Secretary, Economic Relations Division of the Ministry of Finance of the Government of Bangladesh, on 10 April 2014.

http://www.tradewindsnews.com

INS Vikrant Moves from Naval Dock to Ship Recycling Yard

IMO and Bangladesh announce major collaboration to improve ship-recycling standards

All Marine EquipmentsAnchors, Chains etc.

Hoosami T R U S T - H O N O U R - C O M M I T M E N T

Metal Industries Pvt. Ltd.

Works : Plot No. 171/173, Mamsa, Bhavnagar • Ph. 0278-2429267 - Fax : 02782427073 Mob. +919824203131 • E-mail : [email protected]

H.O. : 1st Lane, Darukhana Mazagaon, Mumbai - 400 010 Ph. 022-23725773 - Fax : 23722125 • E-mail : [email protected] • Web : www.hoosami.com

INTERNATIONAL STEEL CORPORATION

International Steel Corporation, Alang, India is actively engaged in Recycling business since 1983.

Our Company is ISO 30000-2009 Bureau Veritas and ISO 14001 & 18001 certified.

Have recycled more than 100 vessels of various make, type and LDT.

Website: www.iscship.com

Trend Report


With the monsoon season underway and torrential rains across the sub-continent now commonplace to break up the sweltering heat, the positivity that had recently entered the market (post elections in India) is gradually being washed away.

Going into the first weeks of June, a mixture of negative budgets in both Pakistan and Bangladesh, declining scrap steel prices, and a depreciating Indian Rupee left all subcontinent markets in a state of turmoil.

Indeed, many end buyers simply chose not to offer, for fears of further falls on the horizon. A standoff therefore emerged between those cash buyers, who have purchased vessels at the peak of the market and are yet to commit their units onwards, and reluctant end users, as high resale prices are swiftly becoming a thing of the past.

As vessels are being resold at ever lower numbers, end buyers are finding justification in rolling their prices back further and some of the vessels committed at the peak of the market to unscrupulous cash buyers may be set for (and some are reportedly facing) trouble at the waterfront.

Owners hoping to enjoy the previously bullish summer pricing have been shocked into the new realities on offer and would be better off taking in the World Cup action in Brazil rather than chasing the highs of yesterday's numbers.

Many in the industry are thus fearful that prices may dip further as the summer months progress, but a rally (as is often the case) may be just around the corner, come the fourth quarter of the year, as all markets ramp into overdrive once again and previously reticent owners finally take the plunge by selling for scrap.

The buying interest from Greek ship owners is focused on bulkers to an increasing extent. Data from VesselsValue.com reveal that Greek owners were at the buying end of 43% of all bulker sales completed so far in 2014. As of June 2014, the number of Greek bulker purchases so far is 91, compared to 81 for the full year of 2012. The level of activity seen so far in 2014 would suggest Greek owners are on target to top the 199 bulker purchases completed in 2013.

Chief Shipping Analyst at BIMCO, Peter Sand, says: “The interest is much centred on bulkers and has become more and more explicit over the past two years, whereas Greek buying interest in tankers and containerships is flat. The development gives insight into the minds of Greek owners and where they expect to see the biggest opportunities arise – sooner rather than later”.

No Capesizes were reported sold in 2014, and only four where bought. Purchasing interest has been the highest for the smaller ship sizes, with Handysize and Handymax/Supramax ships accounting for 2/3 of the 91 purchases done.

The market share of Greek tanker purchases has averaged at 19% in the past 2½ years. So far this year, Greek owners has bought 39 tankers, only 12 of these built before 2000.

A bit more optimism seems to have surrounded the container shipping segment in 2013, where

GMS demo rankings for the week are as below:(Source: GSM Weekly June 13, 2014, Volume 142, Issue 624, Week 24)

BIMCO: Greek ship owners prefer bulkers

20

DemoRanking

Country MarketSentiment

GEN CargoPrices

TankerPrices

12345

India Bangladesh Pakistan TurkeyChina

WeakWeakCautiousWeakWeak

USD 455/lt ldt.USD 450/lt ldt.USD 450/lt ldt.USD 325/lt ldt.USD 310/lt ldt.

USD 485/lt ldt.USD 480/lt ldt.USD 480/lt ldt.USD 325/lt ldt.USD 325/lt ldt.

Trend Report


54 out of a total 197 deals done for onwards trading ended on Greek hands. In 2014, the tendency is one of less interest with a share of

19% a number on par with 2012.

“On the selling side the same pattern is disclosed as the Greek ship owners sell fewer and fewer bulkers. Greek owners have sold just 14 bulkers in 2014 as compared to 73 in 2013. They are clearly building on an already significant bulker fleet”, added Peter Sand. (Source: www.bimco.org)

It is indeed the new dawn in India. Even as the initial euphoria settles down, the entire country is seeping in the golden glow of hope with Mr Narendra Modi and BJP's victory.

This is perhaps for the first time that voters across social strata, religious beliefs, economic background and age groups have come together to bring about a resounding renaissance of the democracy. Appeasement tactics, benefits, sops, vote bank politics, communal contraptions all took a backset as India set to exercise its democratic powers. Be it the corporate, youth, farmers or the middle-class, development was everyone's clarion call.

India Inc gave huge thumbs up with the Indian markets touching life-time highs coupled with

huge volumes, rupee hitting new highs and analysts talking of 10% plus gains by year end. Foreign investors and local traders are all betting on reforms and a revival of the slowing growth rate. Economic inclusion is perhaps the biggest challenge for the new Government as. It is very clear that the centre of gravity of Indian politics has shifted to right. It is quite evident that implementation is going to be crucial. Social upliftment initiatives fall flat without effective execution at the ground levels.

The desire for change was so strong that people for the time being have set aside worries about Modi's strong ties with the fairly radical RSS, the Bharatiya Janata Party's hindutva policies and the brand of crony capitalism professed by them. Mr Modi in his victory speech, has asked for 10 years to change India's fate and bring the India story back on the global arena. The hope is that he will be able to replicate the Gujarat Model on the national platform. In his own words, “The age of divisive politics has ended, from today onwards the politics of uniting people will begin. We want more strength for the wellbeing of the country … I see a glorious and prosperous India.”

With a landslide victory for BJP, India's junk ship market is on a swing, thanks to the surge in Rupee and steel prices in the secondary market. Stock market has surged by a record 6%, and the currency was trading into the 58s against the US Dollar. With such optimism sweeping through the industry, the market gained almost $20/LDT in ship prices as on 19 may 2014.

With many yards now keen to take units and supply seemingly set to dwindle over the summer months as owners seek to trade vessels or pass surveys in anticipation of brighter days for charter rates ahead, prices may even improve further, despite the onset of the traditionally cooler monsoon season.

Modi's landslide win drives up India's junk ship market

News & Updates


India scrap ship market is squeezed by exchange rates, steel prices

India's per capita steel use at 57.8 kg in 2013

(Source: http://www.shippingtribune.com/ June 9, 2014)

(Source: http://www.business-standard.com, June 2, 2014)

WEAKER exchange rates and a slide in domestic steel prices in India have put downwards pressure on Alang demolition prices, although a number of deals were reported sealed at above US$500 per ldt (light displacement ton).

By comparison, the markets in Pakistan and Bangladesh remained subdued as breakers in both countries kept a watchful eye on forthcoming budget announcements.

With the monsoon season about to start, there is a sense that rates may have peaked and that owners selling vintage tonnage should proceed with caution, reported Lloyds List.

“Some cash speculators continue to have surprising ideas as to market stability by continuing to offer firm rates,” said London-based Clarkson Research Services.

“It is questionable whether there is any real justification or reasoning behind strong numbers today when, locally, markets are not sustainable,” it said.

“Thus owners must also adopt a cautious approach as there have already been whispers in the market of deals failing at high rates and subsequently resold to others at a lower rate,” said Clarkson analysts.

Average per capita steel consumption globally was 225.2 kg last year: WSA

India's per capita steel consumption last year stood at 57.8 kg, lower than the smaller economies such Venezuela and Egypt and nearly one-fourth of the global average.

According to a World Steel Association (WSA) publication, average per capita steel consumption globally was 225.2 kg last year.

Venezuela and Egypt had higher average at 93.3 kg and 88.9 kg respectively in 2013. Among the larger economies, China's per capita consumption last year was 515.1 kg compared to 487.6 kg a year earlier.

India's per capita steel use has always been in the range between 43.9 kg and 57.5 kg since 2007. The growth over 2012 in 2013 is just 300 gm.

India's steel consumption grew by just 0.6% in 2013-14 fiscal, its lowest in four years, to 73.93 million tonne (MT), mainly impacted by a slower expansion of the domestic economy and lower imports.

"The low growth rate in domestic steel consumption indicated that base level demand conditions continued to be weak during 2013-14," Joint Plant Committee (JPC), a unit of the Steel Ministry had earlier said. The construction sector accounts for around 60% of the country's total steel demand, while the automobile industry consumes 15%.

Both the sectors were plagued by a slowdown in economy which according to the Central Statistics Office (CSO) grew by 4.7% in 2013-14 and at 4.6% in the fourth quarter of the financial year.

However, India remained the fourth largest steel maker in the world for the fourth year in a row with an output of 81.2 million tonne in 2013.

World crude steel production reached 1,606 MT for 2013, up by 3.5% compared to 2012. The growth came mainly from Asia and the Middle East while crude steel production in all other regions decreased in 2013 compared to 2012.

23

A/106, Leela Efcee, Near Aksharwadi Swaminarayan MandirWaghawadi Road, Bhavnagar - 364 002 (Gujarat) INDIA

Tele/Fax : +91 278 2566106 • E-mail : [email protected] • www. skm-spares.com

Bhavin Shah : +91 9712 97 1648+91 9428 40 1648

Jatin Shah : +91 9825 20 6469+91 9428 40 1644

Beaching Report


Month2013-14 2014-2015

No. of Vessels Total Tonnage (MT)

April

May

June

Total

31

34

21

86

3,04,476.74

3,28,255.47

2,58,395.53

8,91,127.74

31

31

14

76

3,69,288.04

3,48,011.88

1,00,466.49

8,17,766.41

Summary of Total Tonnage Beached of the corresponding year

No. of Vessels Total Tonnage (MT)

Vessels awaiting beaching as on 14th June, 2014

Plot Vessel Name Type LDT Arrival

Ji Yang

Repulse Bay

Bateel

Elcastaro

Daphne

Sea Breezer

Sunnv Oasis

Road

Rose

Abris

San Teodoro

Xiamen

4,085.30

2,121.63

16,283.00

990.50

13,664.97

4,219.99

24,104.00

22,144.00

6,100.00

5,468.00

7,134.00

2,150.00

23/07/13

30/05/14

03/06/14

04/06/14

06/06/14

07/06/14

09/06/14

10/06/14

11/06/14

12/06/14

12/06/14

12/06/14

007

071

035

071

063

076

v-1

017

123

127

056

086

Reefer

General Carqo

OilTanker

GeneralCargo

Passenger

Container

Container

Container

Tanker

Bulk Carrier

Bulk Carrier

Container

(Upto 13th June, 14)

Total: LDT - 108,465.39 MT / VESSELS - 12(Twelve)

Courtesy: Demo Shipping Services

Issue No. 6 I June 2014 Ship Recycling Industries Association

Tide Table

MARK BEACHING TIDEFor Information, Above Tide Timings are for Bhavnagar Port (Concrete Jetty), Therefore, Please Deduct 45 Minutes (About) to Get Tide Timings for "ALANG"

High Tide Low Tide High Tide Low Tide

Date Time Mt. Ft. Time Mt. Ft. Date Time Mt. Ft. Time Mt. Ft.

07:0319:1707:4219:5008:2220:2909:0821:1009:5821:5710:5622:5512:04

--- 00:0613:1101:1914:1002:2115:0203:1415:5004:0316:3804:5217:2405:4118:0806:3118:5507:4219:42

LAT 21" 45" N LONG 72" 14" EJULY - 2014

08.9010.1008.829.8408.7309.5008.6509.1008.6108.6608.6708.2708.90--- 08.1109.3308.2009.8808.5310.4508.9710.9509.4111.3209.7811.5310.0411.5710.1811.4310.1811.10

29.2033.1428.9432.2928.6531.1728.3829.8628.2528.4228.4527.1429.20---26.6130.6226.9132.4227.9934.2929.4335.9330.8837.1532.0937.8332.9537.9733.4037.5133.4036.42

01:5213:2902:2414:0202:5414:3903:2515:2203:5916:1204:4317:1605:4018:3506:4719:4907:5720:5609:0421:5710:0922:5611:0923:5312:03--- 00:4712:5101:3813:3502:0614:18

02.2602.4702.3002.7802.3803.1602.5303.5702.7103.9602.8904.2202.9204.1902.7303.8302.3403.3101.8302.7501.3402.2300.9401.7900.70--- 01.4400.6501.1700.7801.0101.09

07.4208.1107.5509.1207.8110.3708.3011.7108.8912.9909.4813.8509.5813.7508.9612.5707.6810.8606.0009.0204.4007.3203.0805.8702.30---04.7302.1303.8402.5603.3103.58

08:2020:3409:2021:2710:2422:2811:3623:4112:50--- 00:5913:5502:0714:4703:0215:3303:4816:1304:2816:4905:0317:2005:3417:5006:0518:1806:3718:4807:1119:19

10.0710.5909.8709.9409.6209.2109.4408.5709.45--- 08.2109.6108.1409.8208.2410.0008.4510.1408.7010.2308.9310.2909.1210.2909.2310.2309.2810.1009.2609.88

33.0434.7532.3932.6231.5730.2230.9828.1231.01---26.9431.5326.7132.2227.0432.8127.7333.2728.5533.5729.3033.7729.9333.7730.2933.5730.4533.1430.3932.42

03:0915:0303:5115:5304:3416:5305:2418:0706:2519:2807:3020:4108:3521:4109:3322:3210:2423:1311:0723:5011:44--- 00:2412:1400:5512:4101:2813:1001:5613:41

00.9901.5701.1602.1801.5102.8301.9703.3302.3803.4902.6203.3602.6603.0802.5402.7602.3302.4802.1202.2701.98--- 02.1401.9502.0602.0302.0002.1901.9502.42

03.2505.1503.8107.1504.9509.2906.4610.9307.8111.4508.6011.0308.7310.1108.3309.0607.6508.1406.9607.4506.50---07.0206.4006.7606.6606.5607.1906.4007.94

1Tue

2Wed

3Thu

4Fri

5Sat

6Sun

7Mon

8Tue

9Wed

10Thu 11Fri 12Sat 13

Sun 14

Mon 15Tue 16

Wed

17Thu 18Fri19

Sat20

Sun21

Mon22

Tue 23

Wed 24

Thu 25Fri 26Sat 27

Sun 28

Mon 29Tue 30

Wed 31

Thu

26

Bhavnagar Port Tide Table

Tide Table





LAT 21" 45" N LONG 72" 14" EAUGUST - 2014

1Fri

2Sat

3Sun

4Mon

5Tue

6Wed

7Thu

8Fri 9

Sat 10

Sun 11

Mon 12Tue 13

Wed 14

Thu 15Fri 16Sat

07:4819:5308:2620:3009:1121:1310:0322:0711:1023:2112:27--- 00:4513:3901:5914:3802:5715:3203:5116:1904:4017:5005:2817:4906:1618:3207:0619:1807:5720:0508:4920:57

09.2109.5809.1309.2009.0508.7708.9908.3309.0208.0409.28--- 08.0909.7608.4910.3409.0610.8709.6611.2710.1611.5010.5211.5210.7011.3310.6910.9510.5010.3810.1609.67

30.2231.4429.9630.1929.7028.7829.5027.3329.6026.3830.45---26.5532.0327.8633.9329.7335.6731.7036.9833.3437.7434.5237.8035.1137.1835.0835.9334.4534.0633.3431.73

02:2714:1402:5514:5303:2515:3704:0116:4304:5117:4906:0019:1507:2120:3008:3921:3809:4922:3910:5423:3711:50--- 00:3212:4001:2313:2302:0714:0402:4814:4603:2315:30

01.9502.7102.0303.0602.2203.4602.4903.8202.7203.9902.7603.7602.4903.2201.9802.5801.3901.9600.8901.4400.56--- 01.0400.4600.7700.5800.6400.9000.6901.4000.9702.04

06.4008.8906.6610.0407.2811.3508.1712.5308.9313.0909.0612.3408.1710.5706.5008.4704.5606.4302.9204.7301.84---03.4101.5102.5301.9002.1002.9502.2604.5903.1806.69

17Sun

18Mon

19Tue20

Wed21

Thu22Fri 23Sat 24

Sun 25

Mon 26Tue 27

Wed 28

Thu 29Fri30

Sat31

Sun

09:4721:5510:5223:0912:10--- 00:3413:2301:4814:2302:4615:1103:3215:5104:0916:2604:4116:5605:1017:2305:3917:5106:1018:1906:4218:5007:1519:21

09.7208.9009.3208.2309.10--- 07.8909.1407.9009.3308.1309.5508.4609.7608.8209.9209.1610.0409.4310.0909.6110.0609.7109.9509.7409.7609.7109.49

31.9029.2030.5827.0129.860.0025.8929.9925.9230.6226.6831.3427.7632.0328.9432.5530.0632.9530.9433.1131.5333.0131.8632.6531.9632.0331.8631.140.000.00

04:0116:2404:4717:3405:4618:5807:0120:1708:1221:2009:1422:0810:0422:4810:4723:2311:2223:5411:53--- 00:2512:2100:5712:5201:2713:2201:5613:55

01.5002.7602.1903.3702.8603.6203.2503.4803.2703.1303.0202.7402.6502.3902.2802.1202.0001.9301.86--- 01.7901.8501.6801.9301.6002.0801.5702.30

04.9209.0607.1911.0609.3811.8810.6611.4210.7310.2709.9108.9908.7007.8407.4806.9606.5606.3306.10---05.8706.0705.5106.3305.2506.8305.1507.550.000.00

27


Tide Table





LAT 21" 45" N LONG 72" 14" ESEPTEMBER - 2014

1Mon

2Tue

3Wed

4Thu

5Fri 6

Sat 7

Sun 8

Mon 9

Tue 10

Wed 11

Thu 12Fri 13Sat 14

Sun 15

Mon16

Tue

08:3220:3909:2221:3710:2722:5511:50--- 00:2713:1101:4514:1802:4715:1303:4116:0104:2916:4605:1517:2806:0018:1006:4618:5307:3119:3908:1620:2809:0721:2410:0322:34

09.5008.7609.3208.3309.1708.0309.22--- 08.1109.5708.6110.0909.2910.6109.9810.9910.5511.1910.9411.1811.1010.9611.0310.5510.7509.9810.3109.3109.7708.6109.2108.00

31.1728.7530.5827.3330.0926.3530.25---26.6131.4028.2533.1130.4834.8232.7536.0634.6236.7235.9036.6936.4235.9636.1934.6235.2832.7533.8330.5532.0628.2530.2226.25

02:5715:1303:3316:0504:2117:1505:3118:4706:5920:1008:2221:1909:3522:2010:3723:1811:34--- 00:1012:2200:5813:0601:3913:4702:1614:2602:4915:0703:2415:5504:0516:56

01.8802.9702.2303.3702.6103.6402.8303.5202.6802.9702.1502.2601.5001.6000.9401.0600.60--- 00.6900.4900.4900.6100.4700.9200.6501.3801.0701.9801.7302.6602.5403.30

06.1709.7507.3211.0608.5611.9409.2911.5508.7909.7507.0607.4204.9205.2503.0803.4801.97---02.2601.6101.6102.0001.5403.0202.1304.5303.5106.5005.6808.7308.3310.83

17Wed

18Thu

19Fri20

Sat21

Sun22

Mon23

Tue 24

Wed 25

Thu 26Fri 27Sat 28

Sun 29

Mon 30Tue

11:17 ---00:0212:3901:2013:4602:2014:3803:0715:2103:4315:5504:1516:2604:4416:5505:1317:2305:4317:5306:1418:2206:4818:5607:2519:3308:0620:21

08.79--- 07.7008.6607.8108.7908.1409.0208.5709.2709.0109.5009.4109.6709.7509.7709.9909.7810.1409.7010.2009.5410.1909.3210.1009.0409.9208.70

28.84---25.2728.4225.6328.8426.7129.6028.1230.4229.5731.1730.8831.7331.9932.0632.7832.0933.2731.8333.4731.3033.4430.5833.1429.6632.5528.55

05:0118:2206:2319:4307:4420:4408:4721:3209:3722:1210:1822:4710:4523:2011:2723:5211:59--- 00:2412:3200:5613:0501:2713:4002:0014:1702:3414:58

03.3503.6403.8403.5303.8303.1703.4802.7603.0002.3602.5202.0202.1501.7501.9101.5401.80--- 01.3901.7901.1301.8501.3201.9901.4502.2201.7202.55

10.9911.9412.6011.5812.5710.4011.4209.0609.8407.7408.2706.6307.0605.7406.2705.0505.91---04.5605.8703.7106.0704.3306.5304.7607.2805.6408.37

28


On a Lighter Note


Knowledge Point…………. • A snail can sleep for three years.

Pearls melt in vinegar.

Walt Disney was afraid of mice.

You burn more calories sleeping than you do watching television

The rat has been called the world's most destructive mammal - other than man

Chocolate was used as medicine during the 18th century. It was believed that chocolate could cure a stomach ache

A duck's quack doesn't echo, and no one knows why.

"I am." is the shortest complete sentence in the English language

An ostrich's eye is bigger that it's brain

•

•

•

•

•

•

•

•

1. Who among the following is the author of the book "Redesigning the Aeroplane While Flying"?(a) Arun Maira (b) Sanjay Baru (c) Sachin Pilot (d) Yashwant Sinha

2. India's "Ankita Raina" is associated with which of the following sports/events?(a) Tennis (b) Badminton (c) Snooker (d) Hockey

3. The lower limit of perpetual snow in mountains such as the Himalayas is termed as the(a) tree line (b) timber line (c) snow line (d) boundary line

4. The influx of domestic sewage containing detergents cause nutrient enrichment in water bodies due to the presence of(a) carbonates (b) nitrates (c) phosphates (d) silicates

5. The market condition when goods and services are not freely available and thus the prices are relatively high is called(a) rights issue (b) sinking fund (c) seller's market (d) recession

6. The host of first Olympics in 1896 was(a) Athens, Greece (b) Paris, France (c) London, Great Britain (d) Los Angeles, USA

7. Which among the following share largest volume of the country's total vegetable oil imports?(a) Palm oil (b) Coconut oil (C) Ground nut oil (d) Sunflower oil

8. Himalayan Kumbh is held every 12 years in which among the following states? (a) Himachal Pradesh (b) Uttarakhand (c) Jammu & Kashmir (d) Sikkim

9. The original name of 'Mahabharata' is(a) Katha Saritsagar (b) Jai Samhita (c) Vrahat Katha (d) Rajatarangini

10. What is unique about the film 'Adi Shankaracharya'?(a) It has won the National Award. (b) It is the first Bengal film. (c) It is the first Sanskrit film (d) It has no female actress

Answer: 1.[A] 2.[A] 3.[C] 4.[C] 5. [C] 6. [A] 7.[A] 8.[B] 9.[B] 10.[C]

Disclaimer: All material that appears in this edition is printed at the discretion of the publishers, but does not necessarily reflect the opinions of the publishers. We endeavor to maintain a high standard of credibility in the quality of articles published and our articles are intended as informed contributions to people seeking to pursue a rich and rewarding experience in business. Readers are advised to always use their discretion in using any product, service or approach either advertised or written about in this magazine. SRIA doesn't own any responsibility in any capacity.

Your suggestions and ideas are invaluable as we seek to produce subsequent issues of this magazine that continues to inform and benefit our readers. Please send your comments and/or q u e s t i o n s a b o u t t h i s m a g a z i n e t o [email protected]

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A Green Re Incarnation - · PDF fileWhat they also bring are fabulous bargains for shoppers at the Great Alang Bazaar. From furniture and gizmos, to engineering goods, the range of