Recycling

Compass Maritime understands the importance of maintaining an active presence in the recycling market. This fast-moving and ever-changing market requires constant vigilance to monitor trends, price movements, local port regulations, and political and economic changes in all international recycling locations.

We continuously monitor price fluctuations and trends in this highly volatile market, with our team leveraging extensive experience in practices, payment, and delivery procedures to provide our clients with the best possible price and delivery terms while minimizing risk.

Though a smaller market than the Subcontinent and Turkish recycling centers, the United States has an active recycling industry, with locations from Alabama to Brownsville, TX. Compass Maritime maintains close relationships with all major recycling companies in the U.S. and is involved in many commercial transactions that supply the industry with barges, ships, tugs, and offshore equipment for recycling.

Once assets reach the end of their useful life, they may require tug services to tow them to a recycling facility. The Compass Maritime Offshore and Recycling teams collaboratively track Tug positions to cover the transportation many recycling deals require. We represent both U.S.-based tug owners and tug owners around the globe.

Past Projects

Compass Maritime has concluded over 1,000 transactions to buy/sell assets between our Recycling and Sale & Purchase teams.

Chevron Partnership

Before 2000, AL Burbank’s sale & purchase Team was Chevron’s exclusive recycling broker. When Compass Maritime opened its doors, Chevron continued the relationship, nominating us as its exclusive broker to handle its ship recycling program. We are privileged to maintain exclusive representation for Chevron’s ship recycling requirements.

Other Valuable Partnerships

Compass Maritime is also the exclusive broker for ship recycling sales on behalf of SMT, which owns and operates a large fleet of self-discharging bulk carriers, and Matson Navigation, which owns and operates a fleet of US Flag container ships. Compass Maritime has also transacted over 100 ship sales for Tidewater Marine.

The Baltic Exchange

The Baltic Exchange is a leading source of independent global maritime market information. Compass Maritime is honored to serve as one of only six panelists in the world on the Baltic Exchange Demolition Assessment Panel (BDA).

The Baltic Exchange includes this weekly data in its calculation of the respective Baltic Exchange ship valuation indices.

From AL Burbank to Compass Maritime

Before Compass Maritime was founded, AL Burbank (ALB) was a pioneering and leading ship broker based in New York City. In the early 1980s, ALB worked closely with the U.S. Department of Transportation Maritime Administration (MARAD) to implement the 510(i) program colloquially called the “Trade in, Scrap Out” program.

The goal was to offer U.S. flag ship owners an option for trading older, redundant vessels to the U.S. government in exchange for even older vessels maintained in the MARAD Reserve Fleet. Ship owners would sell these older vessels from the Reserve Fleet for recycling purposes to recoup the cost of other older vessels they relinquished to the government. During the 510(i) program’s five-year lifespan, ALB brokered the sale of 60 vessels.