11NOV2019 - NEWS - Tanker scrapping market fails to ignite despite IMO 2020 concerns
The last two months saw only two large tankers sold for scrapping. A firmer freight market helped, but falling local demand for scrap steel is keeping elderly tankers at sea
The spike in VLCC freight rates that has lifted values for secondhand tonnage in the tanker sector is also partly to blame for the lack of scrapping in September and October. Only two large tankers have been sold for scrap in that period. With freight rates at firm levels owners and operators are hanging onto older tonnage. This is an important factor, but the main issue is underlying demand for ship-based scrap metal in the Indian subcontinent.