Ship and offshore asset recycling is a key driving force for the trading markets globally. As these assets begin to age, their expenses continue to rise making them unviable to operate, as they do not cater to the age bracket required for operations. For younger and newer tonnage to take over the business, the old need to be taken of the markets.
When a ship or floating asset reaches the end of its economic life (generally 20-30 years and older), the unit is sold for recycling at one of the five major destinations in the world: India, Bangladesh, Pakistan, China, or Turkey.
The assets are sold or purchased based on their total weight: In the industry, this is known as “Lightship” and so, all dealing’s are done on the basis of the net lightship - with most of the constituent parts being melted down for recycling or re-used as follows:
In essence, ship recycling truly helps to extend a ship’s ‘useful’ life well beyond its intended design.
We’re a company that has experience across the entire lifecycle of such a process and are proficient in moving a ship across the seas to a compliant yard and then overseeing its ultimate dismantling and sale for scrap. So whether you’re seeking to decommission and sell multiple assets at once, or just a single vessel, we have the ability to work through everything from the logistics to the final realisation of scrap value. Working across a range of asset values, no job is too big or too small for the team, and we’re not ones to shy away from complex jobs that demand creative solutions either.
As a result, in today’s ship recycling business, companies like ours are key players, as we purchase a vessel for cash from the owners and redeliver the offshore asset to a recycling yard (ship recyclers or 'end users'). As a firm with an extensive network, companies that come to us can be sure that we arrange everything from transportation to the ultimate dismantling and recycling of a ship in compliance with international ordinances and certifications. That’s because, buyers like us are not brokers, but instead, principals who take care of delivery of vessels on both ‘delivered’ and ‘as is, where is’ terms. With experience bringing assets from the most remote corners of the ocean to shipyards for recycling, we have a wealth of experience in making custom transportation requirements that are economically beneficial to all parties involved. We’re not put off by long-layups or the fact that there’s been no activity on board. Rather we’re here to help you get the most value from your asset, no matter how complex the job.