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Monday, December 18, 2017

Phase-out continued

We have received several comments on our phase-out article in last week’s Weekly NEWS. The comments have not resulted in drastic changes, but phase-out numbers have been revised downwards as a result of information on conversions and on some tankers that were scrapped in previous years. Storage tankers are excluded from our list as it is very unlikely that old tankers used for long term storage will return to the market.

Phase-out has changed little for the years after 2005 and we therefore give just our latest update on phase-out by 2005.

According to the updated INTERTANKO records 490 tankers or 18.8 m dwt have to be phased out by 2005 according to MARPOL:

  • 12 VLCCs (down 2 since our last update due to conversions)
  • 12 suezmaxes (down 2)
  • 49 aframaxes (down 2)
  • 40 panamaxes (50-80,000 dwt) (down 9)
  • 148 tankers 20-49,999 dwt (down 15)
  • 228 tankers 5-19,999 dwt (down 2)

We repeat the uncertainties with regard to the above figures are:

  • PL/SBT status: It is Category 1 tankers that have to be phased out by 2005 plus Category 2 (PL/SBT) tankers delivered in 1978 and earlier. PL/SBT was mandatory from mid-1982, but some tankers were built with PL/SBT before 1982 and others have been converted. Databases have proved not be reliable with regard to the individual tanker’s hull or PL/SBT status.
  • There are some old double hull tankers that are assumed to satisfy MARPOL requirements.
  • FSO/FPSOs are not subject to phase-out but there may be some uncertainty with regard to whether an actual conversion has taken place.
  • There have also been a few tankers converted to double hulls, but these appear to be of marginal importance (INTERTANKO has recorded two DS aframaxes that have been converted). A patent on conversion to double hull has also been taken by one owner.
  • There is 2.2 m dwt of combination carriers built in 1982 and earlier not included in the above figures, but most of these reportedly have SBT and if PL/SBT in accordance with MARPOL, they will not be due for phase-out until after 2005. Probably some of these mainly trade dry as old combination carriers tend to have problems obtaining oil cargoes.

We thank Fearnleys, and Poten & Partners and in particular EA Gibson for useful feedback.

Contact: Erik Ranheim