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Wednesday, December 13, 2017

Sales for recycling compared to regulatory phase out

Tanker decommissioning have been quite slow so far this year. But as we have said before, there are few large tankers that are actually due for phase-out and in a good freight market sales for recycling are delayed as long as possible.

The table below shows the sales of oil tankers for recycling this year in bold type and phase out requirement according to MARPOL in parentheses.  (For example two of the aframaxes (80-119,999 dwt) sold for recycling this year should according to our information have been phased out according to MARPOL in 2003 and there appears still to be one aframax left that should have been decommissioned in 2003. Five of the aframaxes that have been sold this year for recycling were due for phase out this year and there are 6 left that, according to MARPOL, have to leave the market in 2004. Six of the aframaxes that have been sold this year for recycling were not due for phase out before in 2005 and there are another 56 that that, according to MARPOL, have to leave the market in 2005.  Altogether 15 aframaxes have been sold for recycling in 2004 and another 92 have, according to MARPOL, to leave the market before 2010). 

The table shows that there are many small tankers that already should have been removed from oil trades, according MARPOL.  Several of these are around 5,000 dwt and may have been re-measured to below 5,000 dwt; others may have moved into non-petroleum trades.  Many of the small tankers operate locally and some inland, for example on Russian rivers.

Lastly the table shows that there are only 23 sezmaxes and 18 VLCCs that have to be decommissioned before 2010.  So far this year 7 trading suezmaxes and 3 VLCCs have been sold for recycling.

size dwt

MARPOL phase out year (to be phased out)

Total

2003

2004

2005

2006

2007

2008-9

5-29,999

3 (156)

5 (74)

1 (59)

0 (53)

0 (74)

1 (87)

10 (503)

30-60,000

1 (10)

2 (21)

10 (100)

0

1 (27)

0 (39)

14 (197)

60-79,999

0 (3)

0 (2)

4 (24)

0

4 (13)

0 (23)

8 (65)

80-119,999

2 (1)

5 (6)

7 (56)

0 (2)

0 (15)

1 (12)

15 (92)

120-199,999

0

2 (3)

4 (11)

0 (2)

0 (1)

1 (6)

7 (23)

200,000 +

0

0 (1)

3 (12)

0

0

0 (4)

3 (18)

Total

6 (171)

14 (107)

29 (262)

0 (57)

5 (130)

2 (171)

57 (898)

Contact: Erik Ranheim or Jan Svenne