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Maersk scraps more ships in India

Maersk scraps more ships in India

19-12-2016 10:00:00

Over the coming months Maersk Line will scrap eight container ships. Of these, half will be scrapped on the controversial Alang beach in India. The other half of the vessels will be scrapped at a scrap yard in China

"The ships represent one percent of our fleet, so it is a small but meaningful reduction of our capacity that will contribute to a better balance between supply and demand," says Søren Toft, CCO of Maersk Line.

In India, Maersk Line has signed a contract with the companies Y.S. Investments and Shree Ram, each must dismantle two ships. Shree Ram is already in the process of dismantling two other Maersk Line ships.

The four container ships to be scrapped in China will meet their end at Jiangyin Xiagang Changjiang Ship, a scrap yard which has its own dry dock.

The selected dismantling sites are obtained via a closed tender issued by Maersk Transport & Logistics Sustainability.

The eight container ships are all of the type Panamax, which after the expansion of the Panama Canal are no longer in demand. The ships were originally contracted by Sealand.

There is widespread criticism that Maersk Line chooses to scrap ships at Alang Beach in India. Maersk Line defends themselves by stating that scrapping is only carried out at selected scrap yards that all meet regulatory requirements.

However, critics maintain that the ongoing scrapping does not meet the minimum requirements, which Maersk require.

Source: Maritime Denmark

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