VLCC scrapping continues at pace, with a clear statement Pakistan is ready to open its doors to tankers after 14 months on the sidelines offering further encouragement to the market.
Polembros Shipping and Hyundai Merchant Marine (HMM) are the latest to send VLCCs to the breakers, with rates at five-year lows.
Polembros is understood to have sold the 300,000-dwt Greek Warrior (built 2000), its last VLCC, for scrap at $442 per ldt, or $17.2m. Last month, it also scrapped the 277,000-dwt Yangtze Star (built 1994).
HMM has sold the 301,000-dwt Hyundai Sun (built 1998) following the end of a charter to Statoil. A price of $440 to $447 per ldt has been suggested, meaning a possible $18.69m sale.
Demolition brokers claim CS Shipping will scrap the 281,000-dwt CS Pioneer (built 1999), one of its five VLCCs.
Tanker scrapping has risen sharply this year following weak winter rates, and extra capacity would open up with Pakistan breakers back online.
Speaking at TradeWinds Ship Recycling Forum in Hamburg, the Pakistan Ship Breakers Association’s Saleem uz Zaman said Pakistan could be back in the market in less than a month. “Pakistan is fully ready to open up for tankers,” he told the conference.
He said the association had asked the government to impose a tanker import ban, as safety measures, such as gas-free requirements, were not being followed. However, yards have now developed the safety processes through a series of standard operating procedures.
