According to this consultant, many ships will need to be recycled as a result of the International Maritime Organization (IMO)’s new carbon intensity indicator (CII) rule.
And there isn’t enough recycling capacity to handle them all. Far East recyclers have the most capacity, as we know. But these yards are not certified to recycle EU ships, that must be recycled at a yard following the Waste Shipment Regulation of the EU. There are only six such yards in the EU; Turkey, an OECD state may also be used.
Recycling ships has been fraught with problems for years, mostly of the social kind; but now yards will be held accountable environmentally also.
It’s a good thing for the long run, but planning is essential if you are wanting to recycle a ship.
A good summary as of the beginning of October 2022. Drewry research is well executed and they have thoughtful analysis.
There is an oversupply of container shipping capacity coming. There are so many newbuilds coming. And the amount of container freight seems to be leveling off, if not declining. And congestion seems to be declining, in at least the places that were bad over the past two years. Currently port congestion is responsible for only about 7% of effective capacity loss, down from as high as 17%.
Drewry’s position is that liner firms have the ability to control the supply of shipping, but they need to be careful to do it right. But the thinking is that the firms themselves cannot completely bridge the gap between supply and demand. Missed sailings can help, and so can phasing out old ships faster. that would also be a benefit for the climate change issues we face.
Drewry – Weekly Feature Articles – Managing the decline
UCL Energy Institute is a very influential research group. The UCL part is University College London. Their investigation of LNG-fueled vessels indicates that these ships are not on the best path to reduce carbon emissions. Thus, many of them being built now will need to be scrapped early.
The study could be quite influential. Shipowners have recently been investing in LNG-powered ships to produce reduced emissions now, especially since methane emissions are not being measured as they should. LNG ships emit methane, a worse greenhouse gas than CO2, through slip from the engine and the fuel handling operations. Most ships have not put in place advanced methane recovery systems.
The ships involved are dual-fuel ships that burn both oil and LNG, as well as single-fuel LNG powered ships.
The scientific evidence seems to indicate that LNG power may actually be worse than Low Sulphur Heavy Fuel Oil (LSHFO) when all the lifecycle emissions are analyzed. So the ultimate economic effect of the now LNG builds may turn out to be quite a waste of money.
The full report from the UCL Institute can be read here.