Marine Asset Recycling
Marine Asset Recycling
A range of recycling support services offering peace of mind & reputational control
Our service provides a hassle free approach to marine asset recycling in a manner that offers peace of mind and brand protection, whilst obtaining the best price for your asset.
Responsible & Reliable Vessel Recycling Support
With the economy suffering the effects of prolonged shut down due to coronavirus, many owners are accelerating their scrappage strategy for older tonnage.
Cleanship can assist throughout the lifecycle of a vessel recycling project, from feasibility study & yard selections, to supervision of the recycling itself, focusing on ensuring an owners reputation, the safety of the project and its impact on the environment are positively maintained throughout.
With a strong presence in Turkey and Italy, our teams work closely with many of the EU approved recycling yards.
Cleanship is ISO 9001, 14001 and 45001 approved, and works only with recycling yards included in the European List of ship recycling facilities.
We Understand Common Marine Recycling Challenges
With a thorough understanding of the recycling process, our team can mitigate common challenges for a vessel scrappage that seeks to deliver both environmental and financial benefits to an owner.
A popular method for facilitating the recycling of a marine asset is to engage the services of a Cash Buyer. A Cash Buyer will purchase the asset from the owner and ‘facilitate’ the recycling. However, when the sale is complete the owner relinquishes control of the location and standard of recycling services while still bearing the burden of the associated legal and reputational risk. It is not uncommon for owners to sell a vessel to a Cash Buyer expecting it to be recycled in location A and then subsequently finding it being recycled in the less desirable location B.
There are a plethora of local, national and international rules and regulations owners should be aware of when making the decision to recycling a marine asset. This is on top of the common requirements of the EU’s Ship Recycling Regulation and Hong Kong Convention. Consistently, marine assets are being tied up in ‘red tape’ for considerable amounts of time due to missing paperwork and not following local end of life procedures. In 2018, the Scottish Environment Protection Agency banned the movement of 3 drilling rigs from leaving Scotland due to concerns about the rigs’ “destination and disposal”.
According to the Global Union IndustriALL, ship recycling is one of the world’s most dangerous industries. Due to the hazards present and nature of the work, the probability of accidents and incidents is high in any marine asset recycling facility. Certain practices and limitations of recycling facilities further add to the risks. Legal action and criminal proceedings against owners for deaths and accidents during the recycling of marine assets are now becoming common place. In 2017, a ship owner was sued in the UK for negligence in relation to an accident a worker had on the vessel during recycling in Bangladesh – the case was settled out of court.
To be made an example of in the glare of the international media is never good for business. Over the last five years, media attention on marine asset recycling has increased massively – in part due to easier access to vessel tracking and an army of informers based in and around recycling locations. Increased social media utilisation can even mean recycling workers themselves can cause potential Brand damage through uploading ‘viral’ videos featuring the owners vessel or rig. In general, Blue-chip companies utilising the marine assets and Banks financing them are now paying more attention to owners end of life activities .
In these challenging economic times, every dollar counts. The process of recycling marine assets is full of middle men and hidden costs that should be factored in when negotiating and choosing a facility. One aspect recycling facilities may leverage to push down the price offered to the owner, are costs associated with removing asbestos. These costs are sometimes greatly exaggerated and in some cases asbestos removal is not even carried out. Knowing what equipment can be reused or sold on the second hand market can also extract extra value for the owner during the recycling process.