We’re a social bunch

Let's talk Business

Join BLUE and Norton Rose Fulbright to discuss challenges of vessel over-supply and sustainable scrapping

Posted 04.05.2017
Back to news

Vessel over-supply has long been accepted as one of the key challenges plaguing the maritime industry, blamed for driving everything from owners’ bankruptcies to the lack of investment in emissions reduction. At Danish Maritime Days 2016, one of the core conclusions was to classify over-supply as a terminal market failure as opposed to the previously received wisdom that it was simply a product of cyclical shipping economics. This is a significant shift from accepted norms, but sensible given that the industry is approaching a decade of downturn and over-supply, since the 2008 global economic crash. 

However, accepting this crippling market issue as something that will not simply disappear with time under current market dynamics poses a significant dilemma. How can the industry replace a broken market with a functioning one? How do we proactively and positively solve the issue of oversupply? 

On 6th June 2017, BLUE will partner leading maritime law firm Norton Rose Fulbright (NRF) to host a panel discussion and webinar that will explore these critical industry issues. 

Attendees will include regulators, shipowners, shipyards, recycling experts, financiers and NGOs to debate and discuss ‘Unlocking the issue of over-supply and accelerating sustainable scrapping’.  

Our panel includes Dr Martin Stopford, President, Clarkson Research Services, Michael Jürgen Werner, partner, Brussels, Norton Rose Fulbright, Gust Biesbroeck, Head of Transportation, ABN AMRO N.V., Dr Nikos Mikelis, independent consultant and non-executive director GMS, and Rick Power, senior manager – WSM Asia Green Recycling and IHM Services, Wilhelmsen Ship Management SDN BHD. Key questions that they’ll face include: 

The event aims to build on Danish Maritime Day’s stimulating discussion, which closely linked the strength, sustainability and capacity of the ship recycling market with finding an effective approach to the swift rebalancing of the world’s fleet towards profitable operation and viable freight rates. 

That discussion concluded that recalibrating the fleet’s market value to reflect current market conditions and not the original cost of debt on the vessel would make lay-up strategies less attractive and accelerate the decision to scrap. Yet, how the ship recycling market is legislated and functioning directly affects how, when and where owners choose to sell end-of-life vessels to cash buyers – not simply the value and profitability of the vessel alone. 

Under these conditions, the industry needs to work together to develop a market where scrapping older or obsolete vessels is desirable, the supply of new vessels is limited to projected requirements, and that recycling is enacted safely and with due care to the environment to ensure the whole vessel lifecycle is managed sustainably. No doubt easier said than done! 

BLUE and NRF hope to initiate a debate which will set the wheels in motion for developing a strategy to right this corrosive issue, touching on everything from the gap between book and market value for vessels, scrapping subsidies and the potential clouds on the horizon for the Hong Kong Convention. 

Our event is free to attend and will take place from 15.00 on Tuesday 6th June 2017 at Norton Rose Fulbright, 3 More London Riverside, London SE1 2AQ.

More news

AI in PR: It can’t do what you want us to do
Posted 13.02.2024
BLUE wins new maritime PR and communications client UK P&I Club
Posted 26.03.2024
MEPC 81: The moment things changed?
Posted 28.03.2024

Let’s talk

Get in touch

Cookie consent

Please choose which cookies you want to consent to.