China is to ban overseas ships being broken up at its demolition yards from the start of next year.
The move is part of the country’s bid to stop polluting and waste producing industries in the country. Many yards have already been denied ship recycling certificates.
Chinese-flagged ships will be allowed to continue to be demolished at Chinese yards, but the Government will no longer provide subsidies for the work.
Clarksons Platou Shipbroking said: “In view of this, owners will have to succumb to the fact that with the exception of Turkey, the Hong Kong Conventionapproved recycling yards in Alang will have to be taken more seriously following the incredible improvements that have been made at these yards over many years and the fact that these yards now can only offer owners the only alternative at the current time for green recycling.”
At the end of April, the NGO Shipbreaking Platform, of Brussels, reported that a total of 206 ships were broken in the first quarter of this year of which 152 were sold to the beaches of South Asia.
The Platform said: “The prices offered for ships in this first quarter have been high in South Asia, especially when compared to the figures of last year. While a South Asian beaching yard can pay about US$450/LDT, Turkish and Chinese yards are respectively currently paying US$280/LDT and US$210/LDT.
“This situation led to a significant decrease in the number of vessels recycled in China, with only seven ships scrapped this quarter.”
South Korean and UAE ship owners sold the most ships to South Asian yards in the first quarter with 14 beached vessels each, followed by Greek and Russian owners. Shipping companies from the United States beached five ships.