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Tuesday, October 16, 2018

Record scrapping 1999

Record low rates and high bunker prices have been forcing a record number of 35 VLCCs to the scrap yards in 1999. The number of tankers scrapped this year seems to approximately match the number of deliveries. Modern VLCCs are, however, probably more productive and supply will therefore still increase somewhat.

INTERTANKO has recorded 126 tankers of 17.4 million dwt built 1960-1979 scrapped in 1999, with an average age of 24.9 years old. As many as 99 of the tankers scrapped were built 1974-1976. The figures include 11 combination ships. The highest number scrapped in one month was 17 recorded in November, but we estimate some more scrapping for December. Scrapping in 1999 has been the highest since 1985 when thirty million dwt were scrapped.

Bangladesh has scrapped 45 tankers of 6.4 million dwt with Pakistan second with 27 tankers of 4.24 million dwt, and India third scrapping 28 tankers of 3.24 million dwt. After almost being out of this market for a period china is also back scrapping 14 tankers of 2.6 mil dwt.

Tankers of all size categories have been scrapped, 34 VLCCs, 25 Suezmaxes, 30 Aframaxes and 35 tankers below 80,000 dwt.

Some owners have scrapped several tankers; Dynacom 8, Alandia 5, Athenian Seacarriers 4, Overseas Shipholding Group 5, B+H 5, and OMI 4 tankers, all with average age of 24.4-25 years.

The average price of the VLCCs sold for demolition has been $125 per ldt, ranging from $102.5 to $134 per ldt.

For further information please mailto:erik.ranheim@intertanko.com or visit INTERTANKO's web pages at http://www.intertanko.com