Tanker Owners Get a Breather as Scrapping Ramps Up in Q3

The third quarter of 2017 saw the highest level of total tanker deadweight tons (DWT) sold for scrap in any quarter since 2010.

Some 4.98 million DWT or 2.69 million gross tonnes were sent for demolition during the quarter, according to the data compiled by VesselsValue. This equals to 40 tankers being sold for recycling during the three-month period.

In August tankers got over USD 400 per light displacement tonne (ldt) in the Indian Sub-Continent, a very appealing price for sellers.

Furthermore, high scrapping was also prompted by poor charter rates, which hit their lowest level in August since the start of this year, as explained by Olivia Watkins, Valuation Analyst.

What is more, Time Charter Equivalents (TCE) for Aframaxes were below USD 2,000 a day in August.

However, the trend doesn’t seem to be continuing into the fourth quarter of 2017 as charter rates have increased dramatically, going above USD 18,000, Watkins added.

A total of 73 ships were sent to scrapyards so far this year, removing 7.34 million DWT from the fleet.

With respect to types of tankers being sold for demolition in 2017, Aframaxes were predominantly the owners’ choice with 20 ships sold for recycling. Aframaxes were followed by Handy tankers (16), Small tankers (13), VLCC and Suezmaxes with 9 ships each, Panamax (5) and one Post Panamax.

The average age of tankers being sold for demolition this year stood at 24.9 years.

World Maritime News Staff

Share this article

Follow World Maritime News

In Depth>

Events>

<< Apr 2020 >>
MTWTFSS
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 1 2 3

The 9th Annual Event Green Shiptech China Congress 2020

The 9th Annual Event- Green Shiptech China Congress 2020 will be held on next…

read more >

Belgian Offshore Days 2020

During this event, a conference will be held with focus on “Increasing value by data driven innovation…

read more >

Europort Romania

Europort Romania is the premier maritime networking event of the Black Sea and will connect maritime technology and service suppliers with high level professionals from Romania and surrounding shipbuilding markets.

More info

read more >

MARITIME INDUSTRY 2020

The future of the maritime sector is the point of focus during Maritime Industry 2020.

read more >