Global scrapping would set another highest record this year, increasing almost to 50m dwt.
According to Clarksons, last year made a record with 41.2m dwt sold for scrap. The upward-trend seems to continue in 2012 as well, estimated 49.1m dwt would be sold for demolition.
In 2011, 162.4m-dwt newbuilding has been delivered and doubled bunker oil price from January 2009, which cause more demolition of old vessels.
Clarkson said, "As more fuel-efficient vessels come on to the shore and high bunker oil price pressures owners, shipowners tend to sell their old vessels into scrap."
Added that Clarkson newbuilding price index, having dropped by 17.6% since July 2010, would instigate high scrapping.