Decommissioned cruise ships are being dismantled at Aliaga ship-breaking yard in the Aegean port city of Izmir, western Turkey, October 2, 2020. REUTERS/Umit Bektas
A total of 275 ships were sold for scrap in the first half 2021 with the tanker sector leading the charge, according to a half-year demolition review by UK-based VesselsValue.
The number represents a 40% and 33% increase compared to 2020 and 2019, respectively.
The 275 scrapped vessels have a combined deadweight of 11.9 million tonnes and a total scrap value of over $1 billion, VesselValue said. A total of 131 tankers were scrapped, accounting for nearly half of all ships scrapped in H1 2021.
“The increasing scrapping numbers are a direct result of exceptionally high scrapping rates, which rose and continue to rise throughout 2021,” VesselsValue said. “The end of H1 2021 saw Container scrapping prices reach 600 USD/LT, levels not seen for nearly 13 years. The surge in scrapping prices has been fuelled by the ever growing rise in steel price and demand. A demand catalysed by lockdown restrictions causing logistical issues for construction sites across the world.”
Unsurprisingly, the bulker and container sectors “turned their back” on the demolition market, despite the lucrative prices, amid higher charter rates and a robust S&P market.
“Tanker owners, however, were more tempted by the high scrapping prices, but still, the majority are choosing to cling onto older assets in the hope of a full market recovery,” VesselsValue said.
In the offshore sector, financial pressures due to Covid-19 had owners scrapping non-core assets, including some as part of pre-packaged Chapter 11 bankruptcy agreements.
VesselsValue’s full first-half 2021 demolition review can be found here.
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 105,909 members that receive our newsletter.
Have a news tip? Let us know.
The Panama Canal Authority (ACP) has announced an increase in booking slots for its Panamax locks starting mid-May, in response to current and predicted water levels in Gatun Lake. Following...
The European Union’s counter-piracy naval operation off the Somali coast, known as Operation Atalanta, has reiterated its warning that ransom payments could potentially exacerbate the piracy issue off the Horn...
LONDON, April 16 (Reuters) – Howden has started offering war risk cargo insurance to cover vessels sailing through the Red Sea against drone and missile attacks as geopolitical tensions escalate in the...
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
Sign Up
Maritime and offshore news trusted by our 105,909 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
