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Saturday, December 16, 2017

2003 tanker recycling at 2002 level

According to our records, 222 tankers and combined carriers totalling 19.1 million dwt were reported sold for recycling in 2003, which was about the same dwt level as in 2002 when 181 tankers of 19.6 million dwt were recycled. These totals, and the table below, show that fewer VLCCs and suezmaxes were sold for recycling in 2003 than 2002 and more smaller ships were recycled.

The average age of all tankers recycled held steady at about 27 years of age.

The average price per for tanker sold during 2003 was a strong USD 224/ldt compared to USD 151/ldt on average for 2002.

Of the tankers sold for recycling during 2003, Drewry reports that during the first 3 quarters of the year 13 ships, or 0.25 million dwt, were chemical tankers. During 2002 17 chemical tankers of 0.35 million dwt were recycled. Recycling of chemical tankers has traditionally been quite low, for example in the period 1998 to 2001 only 20 chemical tankers of 0.33 million dwt were recycled.

As seen in the graph below, China increased its share of tanker recycling during 2003 whereas fewer tankers were recycled in Pakistan, Bangladesh and India.

Click here for full details of tanker recycling in the period 1990 to 2003 on the INTERTANKO website:

Sales for recycling have naturally started slowly in 2004 against the background of high freight earnings. This fact, and the strong demand for steel, have resulted in very strong prices and the USD 24m paid for the ULCC Marine Atlantic is, as far as we know, an all-time high residual value for a tanker. We have so far this year recorded 6 tankers below 10,000 dwt, 13 tankers 10-40,000 dwt, 8 tankers 55-116,000 dwt, 4 tankers 123-154,000 dwt (including 1 O/O), 2 VLCCs (including one storage unit) and 1 ULCC. Total sales recorded until 12 March have amounted to 34 tankers totalling 2.5m dwt.

According to the MARPOL regulations in force, there are not many tankers due for decommissioning this year, but many are due to go before April 2005 when Category 1 tankers built before April 1982 have to be removed. The rest of Category 1 have to be removed from the active oil trades by end 2005.

There are many smaller tankers that, according to our records, should have been removed in 2003. Some of these may, however, have been re-measured to below 5,000 dwt and others may carry non-petroleum liquids, and therefore not be liable for phase-out. Looking at larger tankers due for MARPOL phase-out in the next 5 years, we see 94 aframaxes, 24 suezmaxes, and 16 U/VLCCs. The table does not include chemical tankers.

Total SH tanker tonnage due for phase out

Year

MARPOL*

EU

OPA90

2003

2,547,715

173

18,568,014

445

15,762,274

198

2004

3,654,861

116

4,124,830

71

5,744,907

83

2005

18,627,756

281

2,110,128

53

5,822,579

204

2006

1,157,226

56

1,184,586

58

4,121,600

67

2007

4,658,424

136

4,658,424

135

3,698,316

81

2008

3,583,989

92

3,494,420

91

2,805,968

52

2009

4,387,244

80

4,387,244

80

4,624,850

54

2010

7,901,008

150

66,733,693

704

56,940,288

453

2011

5,519,184

77

1,379,454

22

1,078,058

25

2012

4,609,713

68

2,042,643

32

888,996

19

2013

5,849,331

71

1,414,400

17

1,577,714

29

2014

8,081,190

77

1,629,645

16

1,749,124

30

2015

46,679,550

421

5,529,710

74

10,206,056

123

Total

117,257,191

1,798

117,257,191

1,798

117,257,191

1,798

Below OPA90 size

2,236,461

380

*MARPOL phase out after 2010 is based on administrations allowing trading of SH tankers after 2010 until the age of 25, otherwise phase-out according to EU.

According to the LRFairplay database, there are more than one hundred chemical tankers built in 1975 or earlier, most of them below 10,00 dwt but also 18 above 10,00 dwt. More sales for recycling of chemical tankers may therefore be expected. There are more than 90 built 1976 -1976, of which some 20 are above 10,00 dwt