The demolition market receives some of the last tankers built at Europe’s now defunct shipyards
The highlight of the tanker demolition market in March and April 2019 was the sale of a pair of chemical carriers which achieved a firm US$863/ldt.
The seller, BW Chemical Tankers, was able to seek such a firm price, nearly double the level of crude oil tankers sold for recycling, due the amount of stainless steel in the cargo arrangements.
Another interesting facet of the sale was that both tankers had been constructed in Spain.
Naval Gijon constructed 19,400-dwt Bold World (ex-Stolt Bold World) in 1998, and Factorias Juliana produced 19,500-dwt Bright World (ex-Stolt Bright World) in 1997.
Both yards made a number of chemical carriers in the late 1990s, of which one or two are still in existence, but Factorias Juliana produced its last vessel in 2000 and was declared bankrupt in 2009, the year Naval Gijon launched its last vessel.
Staying with the shipyards that have long disappeared, 1980-built, 5,900-dwt clean tanker Pablo 4 (ex- Amaranth) was sold for demolition in India for an undisclosed amount having been one of the last vessels to be produced at Kalmar shipyard.
Two VLCCs sold for scrapping in March and April achieved wildly different prices, with 1995-built Super Zearth, constructed by IHI and solely operated by Idemitsu Tankers, sold to India achieving US$390/ldt.
A 1999-built VLCC, Agra (ex- Front Circassia), constructed at MHI was sold for scrapping by Foresight Drilling for a far firmer US$452/ldt, having been assessed with a higher 5,300 ldt with the sale probably a result of the next Special Survey being due in March 2019.
On the new orders side of the fleet equation, the 13 tankers sold for scrap going out of the fleet will be eventually replaced by the 46 newbuildings ordered in March and June 2019.
Six Suezmax tankers were ordered, four for Kyklades and two for Okeanis Eco Tankers with deliveries scheduled from 2020 to 2021 from HHI and Hyundai Samho.
These are the largest tankers to be ordered this year and we have to look back to January to see the last time a VLCC was ordered.
The most impressive order was the eight LR2 tankers placed at News Times Shipbuilding for a reported US$48M each by Eastern Pacific Shipping.
At the time Eastern Pacific Shipping chief executive officer said “We are optimistic about the product sector and this order will put us in a good position to capitalise on the market. In addition, these EGCS [scrubber]-fitted and ice-class 1C tankers will provide us with a fleet that matches the wants and needs of our clients.”
“We are pleased to sign a letter of intent with New Times Shipbuilding. They have a solid track record and we look forward to working with them on this mutually beneficial order.”
The Singapore-based outfit of Ofer Idan is expanding fast and now has 23 newbuildings on order, ranging from 15,000-TEU container ships to 25,000-dwt parcel tankers and has not sold a vessel since December 2018.