Depressed Rates Take Toll On Older Vessels

Monday, December 06, 1999
Low tanker rates are pushing increasing numbers of old VLCCs to the scrapyard, but not enough to counter deliveries of new vessels, shipping brokers said. "Depressed VLCC rates seem finally to be taking a toll on the mid 70s built fleet of large tankers," Norwegian broker Bssoe said in a report for November. Nine VLCCs were sold for demolition during November, taking the total this year to 29 units, compared with 14 by the same time last year, the broker said. But 25 new VLCCs have been delivered this year and a further 10 are expected. "The supply side of the VLCC equation is more or less unchanged," the broker said. Brokers have been praying for higher scrapping levels this year as freight rates have tumbled. But despite incentives being available, tanker demolitions have not taken off. Scrap prices and ship fuel prices are near year highs while freight rates show no signs of recovery. As a result it is uneconomic to operate many old turbine-powered vessels or take them through 25 year special surveys which may require substantial repair work. "But there are still too many owners who should be dumping ships," another broker said. Scrap prices are generally around $135/ldt (light displacement tonne) in India and Pakistan and around $132-133 for Bangladesh and $128-130 in China. India has been particularly active and higher rates have been available for sellers taking VLCCs on an 'as-is' basis in the Middle East and cleaning out tanks ready for cutting work. But India only has room for a few more VLCCs before demolition slots will be filled until next March, Bassoe said. Bangladesh may also be nearing saturation, although China is said to be keen on taking tonnage. - (Reuters)

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Conrad Shipyard Forms LNG Business Unit

Conrad Shipyard has formed a new business unit focused on LNG projects.   Conrad, builder of North America’s first LNG bunker barge scheduled for 2017 delivery,

Prince Charles Places Final Section of UK Aircraft Carrier

The second of the largest warships ever built for the U.K. Royal Navy, the Queen Elizabeth Class carrier HMS Prince of Wales, was given the royal seal of approval when HRH The Prince of Wales,

New Zealand: Maritime Trade is Key

Globally, shipping is on the rise – already 80-90 percent of the world’s trade is by ship; that is more than 12 billion metric tons of goods annually, shipped by 1.

Tanker Trends

RS Rules Conform to the IMO Goal-based Standards

The rules of the Russian Maritime Register of Shipping are in conformity to the International Maritime Organization (IMO)goal-based standards (GBS), the IMO’s Maritime

Asia Tankers-VLCC Rates to Climb Slowly

Around 47 MidEast charters fixed for July loading so far; older tonnage and new vessels a drag on freight rates. Freight rates for very large crude carriers

Terntank's first 15000DWT Chemical Tanker Passes Sea Trials

The first dual-fuel two-stroke engine employing the low-pressure X-DF gas admission technology developed by Winterthur Gas & Diesel (WinGD) has passed the final

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Ship Simulators Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1124 sec (9 req/sec)