Singapore : The ghost fleet of the recession

VZR1800 · **Posted:** Wed Sep 16, 2009 5:48 pm

This was posted on Zero Hedge today, google maps of ports all over the world.
Let your eyes do the walking over Thousands Of Rusting Ship Hulls Are A Fitting Tribute To The Speculative Market Bubble.

bratticus · **Posted:** Wed Sep 16, 2009 6:26 pm

http://grinding.be/2009/09/16/the-empty-armada/

eastbay · **Posted:** Wed Sep 16, 2009 8:06 pm

lowem wrote:

Good pics. Would be better to see some kind of before/after over time to do any meaningful comparison. See if the ships are generally moving or just staying put.

Possibly OT : it's a bit like money velocity. Doesn't do any good just sitting there, it's when it moves that all the interesting things happen.

A few years ago we stayed a few nights at a beach front chalet on the south coast of Singapore within sight of many, many, anchored cargo vessels which we gazed at while sitting on the beach. There were so many it looked like the sea itself was lit up during the evening hours as these ships sat silently and motionless waiting to load, unload, get customs clearance, or simply waiting for a job or a final resting place in a scrap yard.

Keep in mind that the lifespan of a seagoing cargo vessel is short. 20 to 30 years. http://www.reference.com/browse/wiki/Ship

With that in mind, and I could be wrong, but I suspect at least some of the recent increase in idle seagoing cargo vessels stems from the collapse in demand for scrap metal. Remember, in 'normal' times, on any given year 4 or 5% of all oceangoing cargo vessels (freshwater vessels last decades longer) would be converted into scrap metal. But now many are simply sitting anchored near busy sea lanes waiting to get scrapped.

Tanada · **Posted:** Thu Sep 17, 2009 3:26 am

eastbay wrote:

lowem wrote:

Good pics. Would be better to see some kind of before/after over time to do any meaningful comparison. See if the ships are generally moving or just staying put.

Possibly OT : it's a bit like money velocity. Doesn't do any good just sitting there, it's when it moves that all the interesting things happen.

A few years ago we stayed a few nights at a beach front chalet on the south coast of Singapore within sight of many, many, anchored cargo vessels which we gazed at while sitting on the beach. There were so many it looked like the sea itself was lit up during the evening hours as these ships sat silently and motionless waiting to load, unload, get customs clearance, or simply waiting for a job or a final resting place in a scrap yard.

Keep in mind that the lifespan of a seagoing cargo vessel is short. 20 to 30 years. http://www.reference.com/browse/wiki/Ship

With that in mind, and I could be wrong, but I suspect at least some of the recent increase in idle seagoing cargo vessels stems from the collapse in demand for scrap metal. Remember, in 'normal' times, on any given year 4 or 5% of all oceangoing cargo vessels (freshwater vessels last decades longer) would be converted into scrap metal. But now many are simply sitting anchored near busy sea lanes waiting to get scrapped.

Apparently new rules inside India are reversing this trend for breaking yards like Alang.

Quote:

Thursday, 17 Sep 2009
It is learnt from the market sources that imports of steel scarp have become unaffordable for the domestic furnace owners owing to slackness in demand of downstream long products. The dilapidated demand has left them in a situation with compounding costs thereby obliterating the margins. Rubbing salt to the injury the recent regulations restricting the import of scrap only to end users has proved a dampener curtailing the supplies significantly.

It is learnt that rolling mills in vital centers of West and North have cartelized to gloss over the grim situation by attempting to push prices regardless of subnormal demand. Ship breaking scrap prices have soared as supplies partially assuage the demand from starved rolling mills.

Above from something called the Steel Guru you can find HERE!

GASMON · **Posted:** Thu Sep 17, 2009 10:30 am

Somehow I think that there is no definite "East" or "West" anymore. Everything is soooo global. I don't think the dollar will tank, it's still the world's dominant currency. As someone has allready stated, if the USA goes down, so will the whole pack of cards. Perhaps as some predict a new world currency will be formed. As far as we all know it may allready exist and be in use - in cyberland, unknown to the likes of us.

Anyway, went to Liverpool last week, came home, as usual, along the dock road. Very few ships there. A couple of Irish & Isle of Man ferries, a Columbian coal ship unloading, and one large container ship at Seaforth container terminal. That was about it. Missing were the large Chinese boats that load scrap iron, though the mountain of scrap still there. Of course, in the era of containerisation most of the old docks were made redundant many years ago - but the once "Largest and busiest port in the world" seemed eerily deserted.

Gasmon

mattduke · **Joined:** Fri Oct 28, 2005 12:00 am **Posts:** 2577

Quote:

The biggest and most secretive gathering of ships in maritime history lies at anchor east of Singapore. Never before photographed, it is bigger than the U.S. and British navies combined but has no crew, no cargo and no destination - and is why your Christmas stocking may be on the light side this year

http://www.dailymail.co.uk/home/moslive ... apore.html

Nefarious · **Posted:** Wed Oct 14, 2009 7:15 pm

I believe this was posted before. A while back.

lowem · **Posted:** Thu Oct 15, 2009 6:14 am

Nefarious wrote:

I believe this was posted before. A while back.

Thanks for pointing that out.

Topics merged and moved to Asia Discussion.

Singapore : The ghost fleet of the recession

Who is online