ISU Report Examines Recovery Values and Expenses
The International Salvage Union (ISU) has published its annual statistics for 2024, revealing a steady growth in revenue and an increase in the number of services provided. According to the ISU Annual Report 2024, which can be downloaded from the Documents page of ISU's website, the gross revenue for ISU members reached US$ 406 million, an increase from US$ 398 million in 2023.
The ISU statistics for 2024 were collected from all ISU members by a professional third party. The third party aggregates and analyzes the data to provide a comprehensive overview of the industry's performance. The report highlights an increased number of Lloyd's Open Form (LOF) cases compared to previous years, with 29 cases in 2024, an increase from 16 cases in 2023. This rise in LOF cases generated US$ 118 million in revenue.
Emergency response services, including both LOF and other contracts, generated a total of US$ 181 million in 2024. The revenue from operations conducted under contracts other than LOF in 2024 was US$ 63 million. The average revenue from each non-LOF contract in 2024 was US$ 1.2 million.
Wreck removal income in 2024 was US$ 205 million, similar to the US$ 193 million in 2023. The ISU provided 191 services in 2024, an increase from the 184 services provided in 2023. The employee count at Winn currently stands at 671.
Jeff Winn, an executive at Winn, commented on the positive results and growth, stating, "We are pleased to see the industry stabilizing compared to the low point two years ago, but we are still below the higher numbers from a decade ago." John Witte, the ISU President, echoed these sentiments, noting that while the industry is showing signs of recovery, there is still room for improvement.
The ISU statistics do not provide specific causes for the increased number of LOF cases and revenue for ISU members in 2024. However, potential factors could include increased demand for salvage services due to factors such as increased shipping volumes, weather-related incidents, or changes in global trade patterns. Additionally, there might be increased pressure for salvage operations to prevent environmental damage due to a growing emphasis on environmental protection and "zero tolerance" for pollution. Economic factors, such as higher costs associated with salvage operations or changes in insurance and contractual terms, could also play a role.
The SCOPIC revenue in 2024 was US$ 20 million, up from US$ 9 million in the previous year. Winn Group published its 2024 Financial Highlights, showing increases in revenue, gross profit, and EBITDA. The exact causes for the significant increase in Lloyd's Open Form (LOF) cases and revenue for ISU members in 2024 remain unclear without specific data or further analysis.
The renewable-energy industry might find inspiration in the ISU's growth strategy, as innovation in salvage services could lead to similar revenue increases. The ISU's positive financial performance in 2024 is not solely attributed to Lloyd's Open Form (LOF) cases; events such as increased shipping volumes, weather-related incidents, or changes in global trade patterns could also be contributing factors. Financial reports suggest that finance plays a crucial role in the industry's growth and recovery, with investments in renewable energy potentially driving further expansion.
