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Thursday, October 18, 2018

Early retirement – Bassøe

According to the Bassøe Shipbrokers report of 2 June 2003, this spring has brought about several changes in the tanker market. There has been a surge in recycling in the last month, partly triggered by the end of the bonanza in the freight market. However, more important is the loss of Iraqi exports and the pending tightening of regulations in the EU, which will further limit trading opportunities. The result is likely to be even more recycling in the coming months and another year of modest fleet growth.


The challenge for a good part of the 1970s built-tankers in recent years has increasingly been to even qualify for a cargo, let alone be fixed. The result has been increased – unpaid – waiting time. In the recent market peaks, with capital costs at zero, one or two voyages can give a good return. The end of the Iraqi war and the normal softness in spring oil demand has enabled charterers to become more selective again. Thus loss of Iraqi exports and expected EU regulations will serve to speed up the retirement of 1970s-built tanker tonnage.