Shipping companies around the world set out to sale for demolition of their aging vessels, hitting hard by external circumstances of market's long-term worsening and oil-price increase.
Clarksons and other sources said on September 23rd that worldly sold for scrap totals 644 ships, 28.4m dwt year to date, which already exceeds last year's 27.3m dwt. Also if high scrapping rate continues, it expects to be set record this year, outnumbering 33.2m dwt from 2009, right after the financial crisis.
Bulkers recorded the largest scrapping with 248 vessels of 16.9m dwt and prospects a total of 22.5m dwt this year. Capesize, for instance, triples last year's 19 ships with 57.
Above this, 109 tankers, 25 boxships and 17 LPG carriers were scrapped.
Scrap disposal of old ship is analyzed to be after raising freight rate by supply reduction and to reduce cost with relatively higher fuel-consuming of old ship. Moreover, doubled scrapping price in three years contributes owners' scrap disposal.