Tanker scrapping at its highest in 2017
More tankers have been sold for scrapping in 2017 so far, and at a younger age, than the previous two years.
According to Alibra Shipping, in 2017 so far, 49 tankers have been scrapped with an average age of 24.5 years. In 2015 and 2016 it was 27.3 and 27.4 years, respectively.
The London based shipbroker reports that a depressed freight market and low spot rates, the lowest since 2014, has led to higher demolitions.
The Greek market has sent the largest tonnage of tankers for recycling. 24% of all tanker tonnage sent for demolition has been done by the Greeks this year, compared to their contribution of 10% throughout the whole of 2016.
Bangladesh is the favourable location over other yards in India. Reportedly, this is because of ongoing environmental regulations that often means fitting technologies is not worth the cost of the ship. Instead, owners are financially better off scrapping their ships and ordering new ones with higher energy efficiency designs and integrated technologies.