Greg Stanton, CEO of Wirana Shipping, has called for swift action from the relevant authorities in India to address the existing issues in the issuance of the ship recycling license (DASR). This certification is essential for ship recycling centers, and ship owners require it as part of the documentation when deciding where to recycle their vessels.
Status of DASR Licenses in India
A report from September 14 Market by Wirana Shipping indicates that only about 36 to 40 ship recycling centers in India have successfully obtained DASR. This number is less than half of the centers recognized by Wirana as authorized under the Hong Kong Convention (HKC). Since DASR is necessary for issuing International Ready for Recycling Certificates for ships, ship owners need clarity regarding which centers hold the required licenses.
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Competition in the Ship Recycling Market
This request comes at a time when Indian recyclers are competing for limited ships. High domestic demand for steel and a decrease in the number of available vessels have allowed ship recycling centers (SRFs) to increase their bids by $10 to $15 per ton. Wirana predicts that these bids will remain strong in the coming weeks.
In addition to their concerns about delays in DASR, the company has reported positive support and engagement with authorities regarding the issuance of credit notes.
Stanton stated, "Ship owners need DASR and should receive clear responses that they can rely on when selecting a recycling center. These delays require immediate attention so that owners and SRFs can plan with greater confidence. We are aware that India has a high number of HKC-certified SRFs, which can create a logistical challenge, but actions by the relevant authorities can help resolve existing issues. Our support in issuing credit notes is promising, and we welcome similar practical cooperation in the area of DASR to expedite the licensing process and ensure owners feel confident when arranging recycling in India.
Hitesh Vyas, Vice President of the Middle East Region and Green Recycling Coordinator at Wirana Shipping, added, "Safety and environmental assessments behind these licenses must be maintained. Accelerating processes without compromising HKC standards is very important."
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