More tankers circulated among brokers for demolition

More tankers are being circulated among brokers for demolition, according to UK brokerage Gibson.
Sales to Indian and Bangladeshi breakers have accelerated with scrap prices on the sub-continent around $100 a tonne higher than this time last year, Gibson noted.

Moreover, 15-year-old secondhand prices are now getting closer to converge with rising lightweight prices.

As well as the traditional summer lull for tanker rates, owners are worried about the slew of newbuilds still to deliver into what is already a weak tanker market. Another pressure is that storage employment opportunities for VLCCs are also diminishing.

According to data from another UK broker, Clarkson, tanker scrapping has increased by 155% year-on-year on an annualised basis, with 4m dwt reported scrapped in this sector so far in 2017.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
Back to top button