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Ship repairers hit by unscrupulous operators

Ship repair firms are under even more pressure than ever as the age profile of the world fleet falls to a record low, more repairs are undertaken by ships’ crews at sea, idle vessels clock up fewer running hours and work scopes are pared to a minimum. But sources now reveal the latest ruse by unscrupulous owners seeking to wring the last dollar out of struggling ship repair facilities.

Paul Bartlett, Correspondent

June 27, 2013

1 Min Read
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Market sources reveal instances in which ships have been booked in for scheduled repairs in drydock. Once docked, their operators demand substantial discounts against the threat of only undertaking some of the contracted work scope. Repair yards have little option but to concede.

No-one is willing to talk on the record to discuss this latest development, but they claim it is evidence of the latest fall in business ethics resulting from tonnage oversupply and poor rates. It represents the latest in a series of blows for repair yards already struggling through a period of record deliveries, inadequate scrapping and slow payments by customers.

The situation could become even worse, sources believe, as hungry shipyards tempt owners into newbuilding deals at cheap prices. New designs are attractive because their fuel-efficiency could detract even from modern ships delivered a couple of years ago.

 

About the Author

Paul Bartlett

Correspondent

UK-based Paul Bartlett is a maritime journalist and consultant with over four decades of experience in international shipping, including ship leasing, project finance and financial due diligence procedures.

Paul is a former Editor of Seatrade magazine, which later became Seatrade Maritime Review, and has contributed to a range of Seatrade publications over the years including Seatrade’s Green Guide, a publication investigating early developments in maritime sustainability initiatives, and Middle East Workboats and Offshore Marine, focusing on the vibrant market for such vessels across that region.

In 2002, Paul set up PB Marine Consulting Ltd and has worked on a variety of consultancy projects during the last two decades. He has also contributed regular articles on the maritime sector for a range of shipping publications and online services in Europe, Asia, and the US.

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