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Friday, December 15, 2017

Few old large tankers left in the market

The large Category 1 1970s- and early 1980s-built tankers are now definitely on the way out. Only 24 VLCCs totalling 6.9 m built in 1984 and earlier appear to be in the market, although there is some doubt as to whether a number of 1970s-built tankers are actually still trading. We therefore do not anticipate that sales for recycling in 2004 will be as high as in 2003, when we recorded 30 U/VLCCs (including two OOs) totalling 9.6 m dwt sold for recycling (down on the 11.3m dwt of VL/ULs sold for recycling in 2002). Of course, some of the older units remaining as storage tankers may also be sold for recycling. The VLCCs built after 1984 are not due for phase-out before 2008 and will not be more than 19 years old this year.

Phase out of Suezmaxes and VLCCs by number

MARPOL

120-199,999

200,000 dwt+

 

MARPOL*

EU

OPA90

MARPOL*

EU

OPA90

-2002

 

 

17

 

 

18

2003

0

20

4

0

18

 

2004

6

3

3

4

4

4

2005

18

1

4

17

 

1

2006

2

2

5

 

 

3

2007

2

2

4

 

 

1

2008

3

3

1

1

1

2

2009

4

4

 

3

3

9

2010

3

47

44

6

153

141

2011

 

 

 

9

 

 

2012

4

2

 

6

 

 

2013

5

3

 

10

1

 

2014

11

4

 

16

1

 

2015

41

8

17

112

4

6

Total

99

99

99

185

185

185

*MARPOL phase-out of SH tankers after 2010 is subject to the approval of administrations (most Middle East countries have not ratified MARPOL and SH tankers may trade to LOOP and US dedicated lightering areas until 2015)
Tankers used for storage are not included

The suezmax sector is in a similar situation but there are 38 built in 1984 or earlier that need to be phased out by 2010. The table assumes that a sufficient number of countries will allow trading until the age of 25 years 2010-2015. Furthermore, 2015 is assumed as the final phase-out year also for DB/DS tankers, but these may trade until they are 25 subject to approval from flag administrations.