Demolition Brokerage

1. Facilitating the Sale of End-of-Life Ships for Scrapping

• When vessels become obsolete due to age, inefficiency, or high maintenance costs, brokers assist shipowners in selling them for demolition.
• They evaluate the ship’s scrap value based on:
  • Size, weight (light displacement tonnage – LDT), and material composition.
  • Market demand for scrap steel.
  • The location and capacity of shipbreaking facilities.

2. Connecting Shipowners with Scrapyards in Key Shipbreaking Hubs

• Brokers arrange sales between shipowners and shipbreaking yards in major dismantling locations, including:
  • Alang, India
  • Chattogram, Bangladesh
  • Gadani, Pakistan
  • Aliaga, Turkey
• They negotiate competitive scrap prices and payment terms to ensure a profitable transaction for shipowners.

3. Ensuring Regulatory Compliance for Ship Recycling

• Brokers ensure that ships are scrapped in accordance with international environmental and safety regulations, including:
  • The Hong Kong Convention for safe and environmentally sound recycling of ships.
  • The Basel Convention on hazardous waste disposal.
  • The European Union Ship Recycling Regulation (EU SRR) for EU-flagged vessels.
• They oversee necessary documentation, such as:
  • Vessel decontamination certificates for hazardous materials like asbestos and oil residues.
  • Green ship recycling plans to reduce environmental impact.
  • Ownership transfer records and financial transactions between shipowners and scrapyards.

Conclusion

Demolition brokers play a vital role in the responsible recycling of end-of-life ships by linking shipowners with shipbreaking yards, securing optimal scrap prices, and ensuring full regulatory compliance. Their expertise promotes sustainable ship recycling while maximizing financial returns for shipowners.