Sales of Sea Giant for decommissioning at record price – Fearnleys

The sale of the ULCC Sea Giant at a price of 233 per ldt or above USD 16 m took total tanker sales for decommissioning to above 14 m dwt so far in 2003.

So far this year INTERTANKO has recorded 153 tankers of 14.3 m dwt sold for decommissioning:

32 tankers smaller than 20,000 of 0.3 m dwt, average age 30.1 years

48 tankers 20-50,000 dwt of 1.4 m dwt, average age 28.4 years,

39 tankers of 2.9 m dwt 50-120,000 dwt, average age 24.6 years,

8 Suezmaxes of 1.1 m dwt, average age 25.4 years, and

26 U/VLCCs of 8.5 m dwt, average age 27.7 years.

China has been the largest receiver with 6.5 m dwt, the demolition sites in Bangladesh have taken 3 m dwt and India 3 m dwt - the balance is mainly unspecified. The steel-weight of the ships amounted to some 2.3 m tonnes and the value of the sales to some USD 473 m.

Record orderbooks

According to Clarkson Shipyard review, the current orderbook is at a record high. The biggest orderbooks are held by:


million compensated gross tonnes

% market share

S Korea









Total Europe









The South Korean market share increased from 19% in 1993 to 37% in July 2003, whereas the Japanese market share declined in the same period from 38% to 28% and Europe’s market share declined from 35% to 18%. China’s market share increased from 1% to 13% over this period.

Tanker ordering is also about to set a record if the current trend continues. Between January and July 2003, 30.2 m dwt has been ordered. The previous record was in 2000 when 34.5 m dwt was ordered and this peak will easily be beaten if the current ordering trend continues for the rest of the year. The value of orders January/July was calculated by Clarksons to be USD 11.1 billion.

A total of 77 VLCCs are on order, contracted at 13 different yards by 35 owners, 16 of which had one VLCC each on order. Mitsui has the biggest orderbook of 9 VLCCs and Kristen Navigation the second biggest with 4 VLCCs on order. Universal SB has an orderbook of 17 VLCCs whereas Hyundai H.I., Samsung S.B. and Daewoo S.B. have 9 VLCCs each on order.

The 77 Suezmaxes on order were contracted at 11 different yards by 32 different owners, 6 of which have one Suezmax each on order. Sovcomflot and Dynacom have the biggest orderbooks of 6 Suezmaxes each and BP Amoco Shipping and Athenian Tankers the second biggest with 4 Suezmaxes each on order. Hyundai H.I. has an orderbook of 28 Suezmaxes whereas Universal SB has 12 Suezmaxes , and Samsung S.B. 10 Suezmaxes.

The 143 Aframaxes on order were contracted at 21 different yards by 52 different owners, 19 of which had one Aframax each on order. BP Amoco Shipping has the biggest orderbook of 11 Aframaxes and Teekay Shipping Canada and Minerva Marine the second biggest with 10 Aframaxes each on order. Samsung S.B has an orderbook of 32 Aframaxes, whereas Hyundai H.I. has 28 Aframaxes on order, and Hyundai Samho. 18 aframaxes.

The large orderbook naturally has to be seen against the phase-out requirements and the decommissioning activity. There are less than 100 Aframaxes/Suezmaxes and VLCCs left that were built in the 1970s, just under one half of which are Aframaxes and only about 20 of which are VLCCs. There were very few Suezmaxes and VLCCs built at the beginning of the 1980s. This means that the pool of old ships due for decommissioning is rapidly diminishing, which will change the situation in the tanker market.