As poor tanker earnings continue, more tanker owners are expected to become interested in demolition.
Charles R Weber said tankers older than 15 years will be less economically feasible with higher maintenance costs and added “This could ultimately prompt a rise in demolition sales activity and provide the market with some respite from prevailing levels of overcapacity.”
The researcher estimated that ageing VLCCs, suezmaxes and aframaxes have operating costs of about $16,680, $13,636 and $11,240 per day, respectively, while the same classes earned around $12,637, $13,932 and $13,303 on average daily in the first quarter of this year.
Meanwhile, Charles R Weber pointed out VLCCs, suezmaxes and aframaxes around the age of 15 or more account for 16%, 15% and 22% of their respective worldwide fleets totals.