Recent evidence even points to the fact that domestic recycling may win the mantle of “best value consideration” with externalities ignored. This is due to a combination of factors including commodity price increases, a more steady supply of ships allowing for maintaining an active workforce in several facilities, and increased competition due to greater activity. Furthermore, a well-established and trained workforce allows for faster turnover of ships than other methods and thus lowers government storage and maintenance costs.
High steel prices and strong competition in the domestic scrapping industry reduced costs (negative value) to the government to an average $79/ton in 2007 for a profit (positive
value) of $21/ton in 2008.165
are well below that of artificial costs approximately $554/ton.
reefing which Ship recycling
is economically sound: it creates local jobs, provides commodities for sale and eliminates most externalities associated with non-recycling
v. Conclusion It is clear that the domestic ship recycling facilities are beginning to see increased volumes, particularly now that export is off the table and the Suisun Bay fleet is being scrapped as part of the settlement in the NRDC lawsuit and the poor condition those ships are generally
October 2009 Executive Navy and MARAD review
Order 13514 their policies,
account for all externalities, ocean reefing and SINKEX could gain divert many ships to the ocean
dumping via traction and bottom that
BASEL ACTION NETWORK
The 15 mile long Brownsville Ship Channel connects the Port of Brownsville in Texas with the Gulf of Mexico. Several leading green U.S. ship recycling companies operate along this stretch. Image Source: www.clui.org/lotl/v33/k.html