Ideocean

Ideocean looks at bringing together technology, investment and end users in marine green tech

Press Release   •   Oct 23, 2012 15:48 SGT

Singapore 23 Oct 2012

Following closely to recent announcments by leading charterers that they will only charter in 'Green Tonnage' and by leading ship finance banks that are looking closely at effeciency metrics like EEDI as part of their lending decisions; it is clear that Green Shipping is a clear and present priority; ecologically as well as economically. 

Speaking at today's event held at the Fullerton Hotel in Singapore, Manish Singh, Group Managing Director, Ideocean Holdings, touched upon the various standpoints from different stakeholder groups. Whilst shipyards are promoting newer 'eco-designs' ; the shipowning community is flagging up the real risk of prolonged misery for the industry if newbuild activity continues in significant numbers without reference to the oversupply situation. The discussion also looked at the viability of retrofitting green technology to existing tonnage and the challanges in integration and interrelation of some such technologies. Singh said, "Green Shipping today is being driven by the convergence of some of the existing technologies and capabilities - and by the economic reality of high fuel costs and the firm intent by end users to achieve greater effeciencies in their supply chains".

It is likely that the longetivity of a typical asset will reduce. Manish Singh alluded to a recent Lloyd’s Register industry survey that saw around 75% of respondents say VLCCs would be scrapped at 15 years or younger. “The supply situation will dictate matters,” he said, adding: “There will also be a faster rate of technological obsolescence.”

Representing the shipowner's perspective, Shaj Thayil, VP, Technical Services & Ship Management at NOL said: “Certain segments have to scrap or change – that is inevitable, it is simple maths. Fuel prices have increased 153% since January 2009 and there is no indication of change. Older ships are no longer competitive and will have to move from the trading place.”

“The market will dictate a lot of these things because if there is a shortage of tonnage then the eco debate is less relevant where as if the overcapacity remains then ships will have to be scrapped,” said Iain Wilson, Regional Marine Manager for Lloyd's Register Asia. 

This sentiment comes on the back of news out this week that scrapping worldwide has hit an all-time high this year. A total of 960 vessels of a cumulative 44.1m dwt have been sold for demolition in the first nine months of 2012, exceeding the record annual demolition volume of 42.6m dwt, set in 1985. 

Scrapping in 2012 is forecast to reach 57m dwt, comparing with 42.4m dwt in the whole of 2011.  

Follow Ideocean on www.ideoceangroup.com for further reports and analysis on the green agenda for the Shipping industry

Further details of the event will be available on Asia Shipping Media group sites 

Ideocean is a strategic advisory business focused on the maritime, offshore and marine infrastructure markets.