EMEA News
Euronav Sees Decarbonisation Driving Scrappage of Older Tankers
Shipping company Euronav expects stricter regulations on fuel efficiency and carbon emissions to drive scrappage of older tankers in the coming years.
The firm made the point in its first-quarter results on Thursday, in which it revealed it dropped to a $71.7 million loss from a $226.2 million profit a year earlier.
"A quarter of both the VLCC and Suezmax fleet is over 15 years old and consume, on average, 22% more than younger tonnage aged at 6 years or less," the company said, citing research from Tankers International.
"Shipping banks, investors, and regulators (IMO, via EEXI regulations due 2023) are increasing their focus on emissions and compliance.
"Euronav believes this will inevitably lead to a further reduction in older tonnage utilisation at some point and ultimately drive their exit from the global tanker fleet."
An easing of sanctions on Iranian crude exports -- currently being carried on older vessels -- may also help drive the exit of these tankers from the global fleet, Euronav said.
