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Tuesday, December 12, 2017

Very little recycling of large tankers despite high scrap prices

INTERTANKO has recorded 56 tankers above 5,000 dwt sold for decommissioning during the first four months of 2004, including 2 VLCCs (2 FSOs not counted), 7 suezmaxes (2 FSOs + one OO not counted), 10 aframaxes, and 10 panamaxes. In addition, 14 tankers 25-47,000 dwt have been sold for decommissioning and 13 tankers 5-25,000 dwt. In total INTERTANKO has recorded 53.6 m dwt sold for decommissioning January-April 2004 with an average age of 27.2 years and at an average price of USD 374 per ldt. Bangladesh has developed into the dominating decommissioning country having taken 27 tankers totalling 2.5 m dwt. China took 11 tankers amounting to 0.8 m dwt and India 15 tankers totalling 0.3 m dwt.

The table below shows that many small tankers are due for phase outase out according the MARPOL 13G phase-out regulations. Many should have already been removed last year. The reason why these are still trading may be that they have been re-measured to below 5,000 dwt or that they are trading in non-petroleum products.

With regard to the larger tankers, the VLCC Magnolia, built in 1973, is used for storage and may not have an International Oil Pollution Prevention (IOPP) certificate any longer. According to the LRFairplay database, the double bottom aframax Polar Texas, owned and operated by Polar Tankers, was built in 1973 and should have been phased out by OPA in 2002 and by MARPOL in 2003. Possibly it has been converted. We have recorded 23 single-hull tankers 25-74,000 dwt and 148 single-hull tankers 5-24,999 that should already have been phased out (includes those with double bottom/double sides). INTERTANKO appreciates that the records are probably not entirely accurate, but is somewhat concerned about the relatively high number of tankers that still appear to be in the market but which should have been phased out. Click here for our list of single hull tankers that should have been phased. We would appreciate any feedback readers are able to give us on the status of these tankers.

http://www.intertanko.com/pdf/research/phase-out.xls

Please contact: erik.ranheim@intertanko.com

The tankers due for phase out are:

 

Phase out

Orderbook*

 

-2003

2004

2005

Total 03-05

Total 06-09

Small

157

76

61

294

214

186**

30-60,000

11

22

103

136

66

310

Panamaxes

3

2

26

31

39

113

Aframaxes

1

10

58

69

29

150

Suezmaxes

0

4

14

18

10

79

VLCCs

1

1

13

15

4

81

*Orderbook: Clarkson Shipyard Monitor deliveries May 2004-2008, April Issue plus orders recorded in April

**According  Clarkson Shipyard Monitor April 2004 there were 14 tankers + 82 chemical tankers + 77 “other specialized tankers” plus 13 order recorded in April.