Cosco Shipping Energy Transportation has announced that the company plans to dispose of 10 elderly tankers as part of its fleet optimisation program.
The vessels being disposed are made up of five VLCCs, three suezmaxes, one panamax and one handy tanker. The ages of the vessels are between 16 years and 18 years.
The company said the vessels have high energy costs, high greenhouse gas emissions as well as a higher risk in safety management resulting in limited profitability.
Cosco expects to gain RMB1.33bn ($205m) from the disposal of these vessels.
Tankers have got off to a dire start to 2021 with much discussion among analysts now focusing on just how much of the fleet will be scrapped.
The first days of 2021 have already seen an above average volume of tankers being sent for scrap, with elevated demo rates proving very tempting.
Braemar ACM is forecasting 35 VLCCs, 21 suezmaxes, 36 aframaxes/LR2s, 13 panamaxes/LR1s and 51 MR/handies to go for scrap this year.
Alphatanker, meanwhile, is projecting for 93 tankers of 34,000 dwt or above to be sent to breakers yards this year. This forecast includes 25 VLCCs, 14 suezmaxes, 21 aframaxes, 2 LR2s and 18 MR2s.