A number of tankers are being sent for scrap in 2021, with elevated demo rates proving very tempting. Cosco Shipping Energy Transportation recently announced its plans to dispose of 10 elderly tankers as part of its fleet optimisation program.
Cosco Shipping announced its plans to dispose of 10 elderly tankers as part of its fleet optimisation program, reports Splash 247.
About vessels to scrap
The vessels being disposed of are:
- five VLCCs,
- three suezmaxes,
- one panamax and
- one handy tanker.
The ages of the vessels are between 16 years and 18 years.
What is the reason?
The company said the vessels have high energy costs, high greenhouse gas emissions as well as a higher risk in safety management resulting in limited profitability.
Cosco’s gain
Cosco expects to gain RMB1.33bn ($205m) from the disposal of these vessels.
Tankers have got off to a dire start to 2021 with much discussion among analysts now focusing on just how much of the fleet will be scrapped.
Other vessels to scrap in 2021
Braemar ACM is forecasting 35 VLCCs, 21 suezmaxes, 36 aframaxes/LR2s, 13 panamaxes/LR1s and 51 MR/handies to go for scrap this year.
Alphatanker, meanwhile, is projecting for 93 tankers of 34,000 dwt or above to be sent to breakers yards this year. This forecast includes 25 VLCCs, 14 suezmaxes, 21 aframaxes, 2 LR2s and 18 MR2s.
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Source: Splash 247
