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Low Freight Rates & Higher Standards Send Monthly Scrappings Up A continuing slump in interna- tional freight rates along with higher ship chartering quality standards have persuaded more shipowners to scrap their vessels, according to a report from the shipbrokering firm of Howard Houlder & Partners, Ltd., of London. The report indicated that shipbreakers purchased 18 tankers, dry bulk and combination carriers totaling 1.5 million deadweight tons in April, as opposed to 910,000 dwt in March and even less at the begin- ning of the year. A total of 48 vessels have been sold for scrap this year, amounting to 3.2 million dwt, compared to 90 ships of 4.5 million dwt over all of 1991. Altogether, 30 tankers have been sent to the breakers yard this year, versus 38 in the previous year. Part of the increase in tanker demolitions can be attributed to tightening international standards on tanker operations in response to environmental concerns. As a re- sult, charterers are more inclined to seek newer tanker tonnage that meets these standards and reduces their liability, forcing older vessels out of the market. However, despite the increase in scrappings, low scrap prices and the high price of new ship construction are forcing many shipowners to keep vessels in service that would nor- mally have been withdrawn by now. The average age of the world mer- chant fleet is almost 13 years old, with more than 50 percent of the international tanker fleet at least 15 years old, creating an urgent need for new ship tonnage. High labor costs and an expand- ing economy have almost eliminated Taiwan from the shipbreaking mar- ket, after accounting for almost 45 percent of world ship scrappings in 1985. Crowley Offers To Donate Cranes To Port Everglades Crowley Maritime Corp. has of- fered to transport, refurbish and install two cranes at no cost to the Port Everglades Authority. The cranes would be installed at the port's Southport container terminal. At the present time there are three existing container cranes at the ter- minal and three more are scheduled to be delivered sometime around the end of the year. Crowley has operations at Southport, which presently func- tions as a roll-on, roll-off terminal. The company offered the two cranes to the port authority because Sea- Land is considering moving to Southport, and Crowley feels that, even with the addition of the new cranes, they may not always have access to the cranes. The conditions which Crowley would impose are that they would have first rights to the cranes but that other lines could also make use of them. The new cranes are being built by Samsung Cos. of South Korea and will have a total cost of about $24 million. Freight Rates Surge For VLCCs And ULCCs Recent freight rates for VLCCs and ULCCs have surged, with the increase in demand for oil shipments from the Middle East reported to be the cause. However, it is possible that the recovery may not last because of the large number of vessels arriving in the Persian Gulf. Where earnings were previously severely depressed, some owners have now reported that their daily earnings have more than doubled. These increases are mainly focused on VLCCs and ULCCs. Owners of smaller tankers are still reporting depressed levels. The Foremost Domestic Manufacturer of High Quality Stainless Steel, Non-Ferrous Bolts, Screws and Special Cold Formed Parts Manufacturing Company, Inc. 1200 Airport Road PO Box 704/750 Fall River. Massachusetts 02722-0750 USA Phone 508 675-2555 FAX 508 677-0494 Circle 155 on Reader Service Card Circle 164 on Reader Service Card 18 Maritime Reporter/Engineering News Eagle Insurance Group strives to prevent accidents on Hi , • j site, helping to keep workers sate and(?ost| down Rantfy Ruy I Secretary of Tteafurer Westport Shipyard Eagle Insurance Group, Inc. Eagle Pacific Insurance Company Pacific Eagle Insurance Company EPIC Insurance Services As a maritime employ- er, every accident you eliminate substantially reduces the cost of U.S. Longshore and Harbor- workers' insurance this year.. .and next year... and the year after that. At ^ventport Shipyard, Randy Rust is always trying to control costs, hut his main concern is worker safety. Eagle's face-to-face service helps Randy create a safer workplace. That means Randy 's other goal, lower insurance cost, is met as well. To find out how Eagle can help you prevent on-site accidents, con- tact Ch ris Engstrom, Vice President/ Marketing, at (800) 372-2255. Or, contact one or our independent insurance hroker-partners listed helow: Eagle Insurance Group is a specialty workers' compensation insurer with a financial rating of A-(Excellent) hy A.M. Best Company. We write U.S. Longshore and Harhorworkers' and State Act workers' compensation insurance in every major port city along the West Coast, Alaska and Hawaii. Rick Paden, RSP Insurance Services (619) 291-6512 Damon Nasman, Rollins Burdick Hunter (206) 281-4500 Craig Pankow, Stanley T. Scott & Co. (206) 323-3931