Study on the implications of the accelerated phase out scheme

1,52

MB

of single hull tankers

171

stron

6480

ID

European Commission

2004

rok

Table of Contents

Executive summary 4

Preamble 16

Abbreviations and glossary 17

1 Introduction 19

1.1 Context 19

1.2 Objectives 20

1.3 Definitions 21

2 International regulation 22

2.1 Regulation of phase out of single hull tankers 22

2.2 International instruments relating to ship recycling 29

2.3 International initiatives and trends 33

3 Ship scrapping cases 35

3.1 Examples of the Basel Convention and the EC Waste Shipment Regulation being applied to

end-of-life ships 35

4 The economics of the ship scrapping industry 41

4.1 Introduction 41

4.2 The business cycle of the shipping market 41

4.3 Supply of vessels for scrapping 42

4.4 Demand of vessels for scrapping 45

4.5 Supply and demand 47

4.6 Capacity 51

5 Historical developments in the ship scrapping industry 52

5.1 Methodology for analysis of historical developments 52

5.2 Historical decommissioning volumes 53

5.3 Average life time expectancy 62

5.4 Ship scrapping prices 63

5.5 Influence of key drivers 65

5.6 Recent developments 70

6 Projections of the future volume and capacity of ship scrapping 71

6.1 Scenarios 71

6.2 Methodology for projection of future scrapping volumes 72

6.3 Future scrapping volumes 77

6.4 Sensitivity analyses 88

6.5 Scrapping Capacity 96

6.6 Overall assessment of impacts 98

7 Guidelines on clean ship recycling 101

7.1 An overview 101

7.2 The International Maritime Organisation, IMO 102

7.3 The Basel Convention 103

7.4 International Labour Office, ILO 104

7.5 International Chamber of Shipping, ICS 105

7.6 National regulation 106

7.7 Sum-up 108

8 Green recycling capacity 110

8.1 Introduction 110

8.2 Methodology 111

8.3 Basis for green recycling of ships 111

8.4 Definition of green recycling 112

8.5 Active green recycling facilities 113

8.6 Recycling facilities under establishment 118

8.7 Projects in development 122

8.8 Dormant capacity 125

8.9 Facilities for decommissioning of offshore structures 129

8.10 Comments on global ship recycling capacity 131

9 Recycling output - materials and economy 133

9.1 Materials fractioning 133

9.2 Hazardous materials 135

9.3 Price of green recycling 137

9.4 Cost estimates for green recycling 138

10 Promoting green recycling capacity 141

10.1 Regulation 142

10.2 Economic instruments 143

10.3 Information 144

11 Conclusions 147

12 References 150

13 Appendix 154

13.1 Appendix 1: Segmentation 154

13.2 Appendix 2: Unit conversion 156

13.3 Appendix 3: Average life time expectancy 158

13.4 Appendix 4: Freight rates 159

13.5 Appendix 5: Age profiles 160

13.6 Appendix 6: The fleet of single hull oil tankers 161

13.7 Appendix 7: Future scrapping volumes 163

13.8 Appendix 8: Oil trade 166

13.9 Appendix 9: Identified docks of >60,000 DWT outside Europe 167