YOUNGER FLEET:New environmental regulations are forcing shippers to retire older vessels, easing a capacity glut, Wisdom’s chief financial officer said
Date: Dec 13, 2016
By: Ted Chen / Staff reporter
Wisdom Marine Group (慧洋海運集團), one of the nation’s largest dry bulk shipping companies by fleet size, expects more stringent environmental regulations to accelerate vessel retirements and ease a supply glut that has hounded the global shipping industry.
New environmental regulations set by the International Maritime Organization that are soon to take effect include a nitrogen oxide emissions standard, which has been imposed on all vessels built since Jan. 1, as well as a ballast water management convention that is to enter into force on Sept. 8 next year, Wisdom Marine chief financial officer Bruce Hsueh (薛亦駿) told an investors’ conference yesterday.
Over the past two years, companies have been retiring vessels older than 20 years faster than capacity that can be replaced by new ship orders, he said.
New ship orders have declined by 70 to 80 percent over the past two years, in particular for larger-capacity vessels, he added. [FULL STORY]