TO OUR READERS AND BUSINESS ASSOCIATES IN THE INDUSTRY:
In light of recent press reports alleging involvement in illegal exports and questioning its commitment to clean and safe ship recycling, Global Marketing Systems (GMS) wishes to make clear that it will take all necessary legal steps to protect its reputation from unfair, damaging and defamatory comments.
Neither GMS nor anyone associated with GMS has been convicted of any alleged export of toxic vessels or in violation of any regulations governing the safe and sound recycling of end-of-life vessels. GMS has strict compliance checks in place to ensure that the sale and purchase of vessels by our principals is within the law.
GMS has always been an ally in the struggle for greener and cleaner ship recycling practices and to promote this collective goal, GMS provides zero cost safety and environmental protection training to recycling workers under its Sustainable and Offshore Ship Recycling Program (https://gmsinc.net/gms_new/index.php/gms-cash-buyer).
Within the recycling and wider maritime community, GMS is viewed as a torchbearer of higher standards, encouraging and assisting numerous ship recyclers in Alang to adopt best business practices and obtain Class NK Certification so as to comply with international standards in particular The Hong Kong International Convention for the Safe and Environmentally Sounds Recycling of Ships (HKC).
GMS is a respected corporation in the shipping community, led by Dr. Sharma who has spent a lifetime building a reputation as a leader in the industry and advocating the cause of safe and sound recycling of end-of-life vessels.
Any publication / corporation / party seeking information as to the green credentials of GMS is encouraged to visit our website www.gmsinc.net and to write to us at firstname.lastname@example.org before publishing any information concerning GMS, its affiliates, or officers of the company.
- Legal Department, GMS
With scrap prices more than doubling in 2021 and the year closing out above a remarkable USD 600/ldt, questions are now being asked about how long into 2022 the resurgence can last.
Following a collapse in rates brought on by the Coronavirus outbreak, the price trajectory has been only up - mirroring dry and container charter rates and stock markets.
Inevitably, what goes up must come down, and as 2021 ends, we are starting to see a correction in ship recycling levels which is likely to continue into the new year.
Ongoing uncertainty surrounding about new COVID-19 variants remains a constant threat with disruption to trade and supply routes an ever-present danger. Is it any wonder that leading players are exercising caution, despite the outlook for prices remaining optimistic and vessel supply expected to remain somewhat static?
Most vessels recycled so far this year are from the beleaguered tanker and offshore sectors, and whilst charter rates remain in the doldrums, we expect it may be more of the same again for 2022. There are suggestions in the market that the wet market may be starting to turn a corner and there is some optimism for a resurgence in rates for the coming year. Hence it may be that we see tanker owners hold back their vessels for a while longer and wait for an uptick rather than opt to recycle now. This will lead to an interesting supply/demand dynamic playing out across the sub-continent, with a healthy appetite to fill plots in all locations apparent off the back of firm steel prices.
China demand for steel will also sustain in 2022, and rather than the cheap billets being exported from China in 2015 which so damaged the industry and led to a ship recycling recession, this is helping to prop up prices. The Chinese ship recycling market also remains closed, except for Chinese flagged government tonnage, so the majority of vessels are being recycled in the subcontinent and Turkey (for mostly EU flagged vessels).
Dramatic currency fluctuations have been of chief concern in both Turkey and Pakistan this year counteracting stunning steel gains seen on occasion in those locations and will likely continue to frustrate going into the New Year. In India and Bangladesh currencies have largely been stable, and this has contributed to the stunning performance of both markets this year in tandem with rising steel prices.
There has also been great progress in the upgrade/certification of yards in India, with 92 out of 120 active yards now holding either IR, LR, RINA or Class NK Statement of Compliance (SoC) with the Hong Kong Convention. In Bangladesh, so far, only PHP Ship Breaking and Recycling Industries holds a Class NK SoC, but several others are expected to follow suit as ship recycling standards continue to improve at pace.
So, whilst no one expects the market to double again next year, there is cause for optimism in 2022 global ship recycling markets, with demand rampant, a dwindling supply of vessels and strong local fundamentals expected to sustain across the board.
Senior Trader, GMS Singapore
December 13, 2021: GMS, the world’s largest buyer of Ship, Rigs and Offshore assets for recycling, has announced the appointment of Jon Chaplin in the role of Chief Communications Officer, commencing in the New Year, 2022.
GMS Founder & CEO Dr. Anil Sharma said: “I have known Jon for over a decade and have admired his authenticity and deep commitment to excellence in whatever he does. The ship recycling industry is an integral part of the circular economy, and Jon has many years of experience in media and this industry. He has spoken and written about his first-hand experiences by visiting yards to collect facts and discussing issues that impact us all. Therefore, he will be a valuable conduit between the several external stakeholders viz shipowners, capital providers, regulators, auditors, class societies, etc. and the ship recycling yards. I am excited to welcome Jon onboard.”
Having established the Ship Recycling Forum in 2009 while a director at TradeWinds, Chaplin formalized his hazmat expert training at GSR Services, later moving to Testing and Inspection specialist Lucion Marine where he helped clients achieve Inventory of Hazardous Materials (IHM) Certification and recycle their ships according to the Hong Kong Convention.
Speaking about the new role, Chaplin points to the rapidly changing landscape for marine and offshore recycling. “An important shift in attitudes towards ship recycling is taking place, both at the waterfront and now in shipping board rooms. Dr. Anil Sharma and his highly capable team are at the forefront of these positive developments, supporting yard improvements and helping owners meet increasingly stringent ESG requirements.”
Chaplin is candid about the challenges ahead and stresses the importance of maintaining momentum. “The pace of change is set to quicken in the next few years, both on the regulatory landscape and with decarbonization targets pushing owners to recycle uneconomic vessels. It is an exciting time to be involved in recycling and offshore decommissioning, with much at stake.”
Referring to the GMS Sustainable Ship and Offshore Recycling Program (SSORP), Chaplin commented, “GMS works very closely with like-minded ship owners and offshore clients to help them deliver responsible recycling solutions without destroying asset value. I’m looking forward to communicating the benefits and helping to take the business forward.”
December 3rd, 2021: We are delighted to announce that Dr. Anil Sharma, Founder & CEO of GMS, has been listed in the annual Lloyd's List Top 100 Most Influential People in the Shipping Industry for the twelfth year in a row. He joins a select group of shipping professionals and global leaders who have received this honor from the world's most prominent and respected maritime publication. GMS is the only institution from the ship recycling industry that has been nominated to this globally respected list.
In this year's ranking, Lloyd's List quoted that Dr. Sharma has spearheaded several key initiatives aimed at making ship recycling cleaner, greener, and more sustainable over the years. As complemented by Lloyd's List – "With nerves of steel and an abundance of patience, Dr. Sharma continues to reduce the shipping industry's global footprint by upgrading ship recycling safety standards, mitigating risk incidents and improving the workplace environment."
Dr. Anil Sharma commented: "I would like to express my sincere thanks to the editorial board of Lloyd's List for this distinguished award. A quick review of the Top 100 shows the titans that have made a monumental impact on our wonderful industry. I am genuinely humbled and honored to be in this select group. This award is the most meaningful in the industry since it's based on demonstrated actions and does not entail self-nominations, lobbying, or sponsorships. This award recognizes our tireless efforts to improve ship recycling standards to global ESG standards without decimating this vital asset's residual value.
The significance of Ship Recycling to the maritime industry remains undeniable. As citizens of the world, it's our sacred responsibility to leave a cleaner and greener world for our children and grandchildren. Ship Recycling is indeed a GREEN industry; the best example of a circular economy, and it must be conducted in nations that can recycle the vessels best in accordance with international standards, reduce our carbon footprint, reuse and recycle the majority of the components and also provide an economic value to owners of these assets and the workers who work at these yards.
For the last two decades, together with the assistance of ship owners, capital providers, class societies, regulators and yard owners, we have worked relentlessly towards improving safety and environmental standards in the Indian subcontinent, where most of the world's ships are recycled. I am delighted to see the industry's impressive advancements over time. As a testament to the industry's collective efforts, in about ten years, we have gone from less than 5% green vessels to 100% green vessels in India this year!
Green recycling at any cost is not a viable solution to this urgent and critical matter. Therefore, we continue to invest significant capital and human resources to ensure that vessels are recycled sustainably according to international standards by considering Environmental, Social, & Governance issues while assuring the of the asset.”
The full Lloyd's List Top 100 review of Dr. Sharma can be found at: https://lloydslist.maritimeintelligence.informa.com/LL1138839/73-Anil-Sharma-GMS
19th October 2021: October 16, 2021: Global Marketing Systems (GMS) is honored to be shortlisted as a finalist for the Safety at Sea Award at the 2021 Seatrade Awards, in association with Lloyd's List.
Seatrade Awards is the leading awards programme for the global shipping and maritime industries. Established in 1989, Seatrade Awards takes place every two years and welcomes entries across a diverse range of categories from businesses of all sectors.
The Safety at Sea Award celebrates the company or individual who has reduced risks to human life in the maritime industry through significant technical or procedural improvements. Out of a record-breaking number of entries, GMS’ end-to-end sustainable ship recycling solution—Sustainable Ship and Offshore Recycling Program (SSORP)—was selected as a top finalist by the judging panel.
"To be shortlisted for the Safety for Sea Award is a testament to the hard work the GMS team puts in every day to ensure safety and the sustainable recycling of ships and offshore vessels,” said Dr. Anil Sharma, Founder & CEO of GMS. “Efforts by the GMS SSORP team to provide regular safety awareness sessions to ship recycling yard owners and workers are part of GMS' commitment to be a responsible leader who aims to drive all stakeholders in a sustainable direction. We are extremely proud of the fact that 100% of the ships committed to recycling yards in India, have been for GREEN recycling! Once again, providing leadership where it matters most."
SSORP is the first and unique ship recycling supervision program in the industry in which every activity of recycling is periodically monitored & documented to ensure the latest & most protective safety standards are implemented every step of the way from start to finish. An on-the-ground SSORP team provides technical consultation to recycling yards to develop infrastructures such as the impermeable floor, temporary storage of hazardous wastes, waste oil management, and stormwater management so that ships recycled under SSORP have a minimum impact on the environment. In addition, the SSORP team regularly hosts a variety of hazard-specific and first aid trainings, technical skill workshops, and risk prevention briefings to thousands of yard workers to promote the highest culture of safety within the yards and eliminate any unsafe practices. During the COVID-19 pandemic, the team also created specific health and safety awareness trainings to help protect these invaluable essential workers. We are proud to say that ZERO fatalities were reported during the recycling process of 95 vessels under the SSORP.
Seatrade Awards, in association with Lloyd's List, 2021 winners will be announced on November 3, 2021.
Founded in the USA in 1992, GMS is the world's largest Buyer of ships and offshore assets. The firm's mission is to create value in safely disposing aging assets while improving health, safety and environmental standards across the various recycling destinations and to generate awareness about the significance of recycling in the maritime world.
For further information or inquiries, please feel free to reach out to us at email@example.com
Established in 1992 in historic Cumberland, MD. (U.S.A), GMS is the world's LARGEST and FIRST ISO 9001 certified Cash Buyer of ships for recycling. With exclusive representatives in all of the major ship recycling markets in the world, GMS has negotiated about 3,500 ships for recycling since inception. In addition to its original office in the United States of America, the company continues to expand its operations with offices in Hamburg (Germany), Athens (Greece), Dubai (UAE), India (Bhavnagar), Singapore, Seoul (Korea), Shanghai (China) and Tokyo (Japan).
P.O. Box 346041, Suite 101,
Saba 1 Jumeirah Lake Towers, Dubai, UAE