Two veteran VLCCs that have been put up for sale are both considered possible scrapping candidates, given the dire freight market and a lack of likely trading buyers.

European broking sources say Kuwait Oil Tanker Co (KOTC) is seeking to offload its oldest unit, the 311,000-dwt Al Salheia (built 1998).

At the same time, bunker company Winson Oil is seeking a buyer for the 311,000-dwt Winson No 6 (built 1998).

Given the age of the ships and the poor freight market, few think the duo will find trading buyers, although they both have good survey positions. The Winson No 6 passed special survey in August last year, while the Al Salheia is not due for its survey until March 2020.

Despite the slowly weakening scrap market, the Winson No 6 could fetch close to $19m if sold for demolition. It was purchased as DS Commander (built 1999) from DS Tanker of Germany for $16.5m in June last year.

The Al Salheia is one of two 1998-built VLCCs in the KOTC fleet.

Both KOTC and Winson did not respond to requests for comments before TradeWinds went to press.

KOTC, which has 12 VLCCs with an average age of just eight years, is working to renew its VLCC fleet further.

Last month, it placed an order for a 318,000-dwt tanker at China’s Bohai Shipbuilding for delivery towards the end of 2020.

The newbuilding carries a price tag of $79.7m — the lowest in recent times for this type of ship.

Delta Tankers of Greece is believed to have sold its only VLCC — the 300,000-dwt Delta Millennium (built 2000) — for scrap.

The ship was sold as is in Colombo, Sri Lanka, for $426.50 per ldt, or $17.7m. Delta bought the ship in 2008 from Reederei Nord for $127m. The company did not respond to requests for comment on reports of the deal.

The continued interest in VLCC scrapping comes as some demolition market experts warn of potential limitations in the amount of additional large tanker tonnage scrapyards can accommodate.

That, combined with slumping steel plate prices, pushed scrap prices down by $15 to $20 per ldt last week, according to GMS, a leading cash buyer.

In a report this week, the company said that most cash buyers have their hands full with tankers and must also fund hot works cleaning, which can take a month.

“It is expected to take some time before these onward sales are finalised, allowing cash buyers to get back into buying once again,” GMS said.