Ship Repairs Focused on Drydock Postponements and Remote Attendances


Ship Repairs Focused on Drydock Postponements and Remote Attendances

in Hellenic Shipping News 07/01/2021

The ship repair hasn’t remained in a “business as usual” mode during 2020. In a recent weekly report, shipbroker Intermodal said that “by the end of 2020, the ship repair sector ends up in a completely different form than expected a year ago. From the Era of scrubber retrofits and packed shipyards we have moved into the Era of massive requests for drydock postponements, remote attendances, and Owners struggling to undergo only the very minimum repairs. The reason, of course, is the ongoing COVID-19 pandemic.

It is very challenging to try to evaluate market trends by isolating the colossal impact of COVID-19. What would the ship repair market be like in 2020 if there was not the COVID-19 epidemic? According to Intermodal’s ship-repair broker, Mr. Vassilis Vassiliou, “we would expect to see more scrubber retrofits, which of course would be affected by the oil prices and price spread between high and low sulfur content on HFO. Maybe more conversion projects, since there were a lot of positive aspects speculating that the offshore business will be revived. Maybe more intensive repairs for the elder fleet. This high demand for ship-repairs should be followed by a serious relaxation, similar to the one we witnessed in 2016 – since the five years cycle determines vessel docking schedule. This depressing market would not be as steep as it was in 2016, considering all the above would be supported by the ongoing trend of BWMS installation, by which we come across in most of the ship-repairs nowadays”.

According to Mr. Vassiliou, COVID-19 shouldn’t change what we should expect from the market. “Such events will occur sooner or later with COVID-19 spread only affecting the time these developments will occur. But eventually changes will take place. Therefore, we expect that the next year will be a busy year for all the repair yards and by the end of 2021 to notice a significant slowdown in demand”.

Vassiliou added that “back to the hot topic, how does COVID-19 affect the current ship repair market? The main concerns now are over the travel restrictions which still have not been stabilized. For Asia, where most of the repairs take place, governments are issuing an LOI to which Superintendents or specialists can travel under special permission. The time and requirements for getting the LOI vary from country to country and from city to city. If more cases observed in one area, the LOIs are immediately withdrawn and had to be reissued. This creates a lot of confusion during the planning phase. At the same time, Europe is currently facing the second wave of COVID-19 spread and this has created uncertainty whether travelers from Europe will be accepted by Asian countries in the near future, since Asia is handling the virus in a much more efficient way”.

Intermodal’s analyst added that “as a result, Owners which cannot ensure that their personnel will be able to attend the repairs have three options. Either to requests from class a postponement or to try to change the vessel’s itinerary to bring her close to places free to attend or to use locals to attend the repairs. Of course, the first option is the most preferable and has resulted in massive postponements and, consequently, a lot of drydocks to be pilling all together with those planned for the near future. And the third option is the least desirable and in such cases Owners try to minimize the scope and to firm the vessel to shipyards they are familiar with, in order to control the collateral damage in case the attending superintendents fail to perform”, Vassiliou concluded.
Nikos Roussanoglou, Hellenic Shipping News WorldwideSelect Language  Powered by Translate

Leave a Reply

SSCP   CAS-002   9L0-066   350-050   642-999   220-801   74-678   642-732   400-051   ICGB   c2010-652   70-413   101-400   220-902   350-080   210-260   70-246   1Z0-144   3002   AWS-SYSOPS   70-347   PEGACPBA71V1   220-901   70-534   LX0-104   070-461   HP0-S42   1Z0-061   000-105   70-486   70-177   N10-006   500-260   640-692   70-980   CISM   VCP550   70-532   200-101   000-080   PR000041   2V0-621   70-411   352-001   70-480   70-461   ICBB   000-089   70-410   350-029   1Z0-060   2V0-620   210-065   70-463   70-483   CRISC   MB6-703   1z0-808   220-802   ITILFND   1Z0-804   LX0-103   MB2-704   210-060   101   200-310   640-911   200-120   EX300   300-209   1Z0-803   350-001   400-201   9L0-012   70-488   JN0-102   640-916   70-270   100-101   MB5-705   JK0-022   350-060   300-320   1z0-434   350-018   400-101   350-030   000-106   ADM-201   300-135   300-208   EX200   PMP   NSE4   1Z0-051   c2010-657   C_TFIN52_66   300-115   70-417   9A0-385   70-243   300-075   70-487   NS0-157   MB2-707   70-533   CAP   OG0-093   M70-101   300-070   102-400   JN0-360   SY0-401   000-017   300-206   CCA-500   70-412   2V0-621D   70-178   810-403   70-462   OG0-091   1V0-601   200-355   000-104   700-501   70-346   CISSP   300-101   1Y0-201   200-125  , 200-125  , 100-105  , 100-105  , CISM   NS0-157   350-018  , NS0-157   ICBB  , N10-006 test  , 350-050   70-534   70-178   220-802   102-400   000-106   70-411  , 400-101   100-101  , NS0-157   1Z0-803   200-125  , 210-060   400-201   350-050   C_TFIN52_66  , JN0-102  , 200-355   JN0-360   70-411   350-018  , 70-412   350-030   640-916   000-105   100-105  , 70-270  , 70-462   300-070  , 300-070   642-999   101-400   PR000041   200-101  , 350-030   300-070  , 70-270  , 400-051   200-120   70-178   9L0-012   70-487   LX0-103   100-105  ,