Kuwait Oil Tanker Company (KOTC) has moved to kill reports it has sold a five-year-old VLCC for demolition.
Scrapping of such a young tanker for commercial reasons would have been an unusual move given today's earnings and expectations for an improving market.
The 317,000-dwt Al Yarmouk (2014-built) had been reported by shipbrokers to have been sold for recycling in India on an as-is basis in Bahrain.
KOTC’s senior management, when contacted by TradeWinds for comment on the reports, were both surprised and bemused.
“Why would we want to sell a five-year old ship for scrap?” asked Ali Shehab, KOTC’s acting chief executive.
Others closely linked to the shipowner - considered to be among the most professional in the region - also questioned why it would be willing to accept the reported $330 per ldt when other tankers this week have been sold for in the region of $440 per ldt.
Cash buyers who contacted TradeWinds asked if the Al Yarmouk had suffered some sort of catastrophic incident that prompted its early demolition.
But that does not appear to be the case, with the ship reported to be in sound condition.
The vessel has recently been docked and discharging crude oil at a terminal in the Chinese port of Qingdao.
