Oil Tanker Phase Out and the Ship Scrapping Industry

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European Commission Directorate-General Energy and Transport Oil Tanker Phase Out and the Ship Scrapping Industry A study on the implications of the accelerated phase out scheme of single hull tankers proposed by the EU for the world ship scrapping and recycling industry Final June 2004 European Commission Directorate-General Energy and Transport Oil Tanker Phase Out and the Ship Scrapping Industry A study on the implications of the accelerated phase out scheme of single hull tankers proposed by the EU for the world ship scrapping and recycling industry Final June 2004 Report no. P-59106-07 Issue no. 1 Date of issue 31st May 2004 Prepared TOD, MPN, HHU, KWI Checked FSL Approved TOD, MPN, HHU, KWI 1 Study on the implications of the accelerated phase out scheme of single hull tankers Table of Contents Executive summary 4 Preamble 16 Abbreviations and glossary 17 1 1.1 1.2 1.3 Introduction Context Objectives Definitions 19 19 20 21 2 2.1 2.2 2.3 International regulation Regulation of phase out of single hull tankers International instruments relating to ship recycling International initiatives and trends 22 22 29 33 3 3.1 Ship scrapping cases Examples of the Basel Convention and the EC Waste Shipment Regulation being applied to end-of-life ships 35 4 4.1 4.2 4.3 4.4 4.5 4.6 The economics of the ship scrapping industry Introduction The business cycle of the shipping market Supply of vessels for scrapping Demand of vessels for scrapping Supply and demand Capacity 41 41 41 42 45 47 51 5 Historical developments in the ship scrapping industry Methodology for analysis of historical developments Historical decommissioning volumes 52 52 53 5.1 5.2 P:\59106A\3_PDOC\DOC\Overall report\Final version as sent \Scrapping study_final.DOC 35 . 2 Study on the implications of the accelerated phase out scheme of single hull tankers 5.3 5.4

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