After the Pakistani shipbreaking market officially reopened following three high profile accidents, it was hit by another hurdle as the Environmental Agency in Gadani revoked all No Objection Certificates (NOCs) issued for recently beached vessels.
The market was previously closed after it three accidents aboard an FSU and an LPG tanker occurred, claiming dozens of lives and causing injuries to a number of workers.
The closure lasted while the government and environmental authorities conducted investigations. Arrests of the respective yard owners where the accidents took place, in addition to the president of the Pakistan Ship Breakers Association (PSBA), were also reported.
According to GMS, a cash buyer of ships for recycling, the yards were only allowed to reopen subject to significant reform and safety upgrades, “yet this recent withdrawal of cutting permission is likely to significantly dampen local demand / levels and possibly hamper upcoming deliveries.”
After the glut of Capesize bulker and container sales, the Pakistani market reported a slightly more muted week despite the sale of one large very large ore carrier (VLOC) at an above market rate.
“Some of the speculative acquisitions seen last week seem to have encouraged competing cash buyers to take their own gambles at similar levels, in the hope that local offerings will inch their way towards numbers being asked from various cash buyers, thereby making their own deals increasingly workable,” GMS said.