World News
BIMCO Sees Product Tanker Scrapping Hitting Record High This Year
The number of oil product tankers leaving the global fleet may reach a record high this year after a prolonged period of low earnings, according to shipping industry body BIMCO.
A total of 1.2 million DWT of oil product tanker capacity has been sold for demolition in the first four months of 2021, BIMCO said in a research note on its website this week, the same level as the annual total for 2019 and 2020.
"If that pace continues for the rest of the year, an 11-year record is set to be broken," Peter Sand, chief shipping analyst at BIMCO, said in the note.
"Just as every crisis holds recognisable elements from previous one – they are never the same.
"Every one of them contains something unique.
"This time around it seems to be demolition of oil product tankers that stand out."
Profits for these ships peaked about a year ago, and have been 'in the doldrums' since September, BIMCO said. Rising prices paid for 'demo-ready' tankers in Bangladesh may also be driving the trend.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 647.50 | 1.00 | 770.00 | 3.50 |
| Rotterdam | 601.50 | 2.50 | 754.00 | 2.00 |
| Houston | 619.00 | 11.50 | 795.50 | 3.00 |
| Fujairah | 651.50 | 1.00 | 895.00 | 2.00 |
| Global 20 Ports Average | 664.00 | 1.50 | 856.50 | 2.00 |
| Global 4 Ports Average | 630.00 | 3.00 | 803.50 | 2.50 |
| Global Average Bunker Price | 718.00 | 0.50 | 914.50 | 0.50 |
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