Tanker vessel scrapping to rise further in 2018

25% of tanker vessel market below 20 years of age are going to be decommissioned

Scrapping of tanker vessels across the world is expected to rise significantly in 2018 as earnings for shipowners per tanker vessel might decline amid rising crude oil prices, drop in China’s crude stocking activity and also ahead of the International Maritime Organization (IMO) regulations coming into effect in 2019-2020.

“Scrapping of tanker vessels globally is expected to go up further in 2018 and may even be more than the quantum of 2016 and 2017 put together. This will bring in a sharp demand-supply correction in the tanker market,” Ranjit Singh, executive director and chief executive officer, Essar Shipping, told Business