2012 hit the record year for demolitions with a reported 57.5m dwt (1,266 vessels) were sold for scrap, which increased by 34.6% year-on-year. Total demolition volume in 2012 approximates record in 2009 but is larger than total volume of newbuildings contracted in 2012, by 21%.
According to latest Clarkson report, newbuilding contracting in 2012 totalled 45.5m dwt, which fell behind of those demolished in the same full year.
In 2008 when global financial crisis occurred, 14.2m dwt were demolished. After that, scrapping activity sharply increased in 2009 to 33.4m dwt, which slightly dropped to 27.8m dwt but grew back to 42.7m dwt in 2011.
While low rates extend, demolition of older vessels with higher fuel consumption increased amid protracted high oil prices. Also, average age of those sold for scrap fell down to 27.6 years last year from 30.6 years in 2011.
An estimated volume of 45.8m dwt would head towards scrapping facilities this year, while 33.2m dwt are expected for 2014, reported Clarkson.
"Bulkers topped the demolition tables, with a 59.5% share of the year's demolition volumes. 557 bulkers of a cumulative 32.9m dwt were sent to shipbreaking yards in 2012," said Clarkson. An average demolition age for bulker stood at 28.2 years. Meanwhile, overall 131 tankers of a combined 11.8m dwt (23.2 years in average) were sold for demolition.
Comparing with those demolished in 2011, bulker scrapping last year rose by 42% from 23.2m dwt and tanker grew by 19% on 9.9m dwt.
As for demolition of container ship, a total of 178 vessels were demolished in 2012, including 147 small-sized vessels (23.8 years in average) under 3,000 teu and 31 medium-sized vessels (22.3 years), etc., which compares with 2011 when 55 small-sized boxships and three medium-sized vessels were sold for scrap.