Although it is widely known that the risk of failure is high in old ships, old bulk ships continue to be used. One reason is that until mid 1992 it was financially viable to maintain an old ship in service rather than dispose of it for demolition. Even though after mid 1992 it did not pay to keep an old ship in service, it was even less attractive to purchase a new ship.
The BTCE's statistical analysis of voyage data identified ship age, flag state, commodity carried and voyage route as important factors influencing the risk of failure. Using this information, the BTCE has developed a technique for predicting the risk of failure of individual ships.
- Structural Failure of Large Bulk Ships