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Supertankers reach new heights

The VLCC market has been struggling with overcapacity for a long time, but this year scrapping will reach a ten-year high, according to Bimco. Meanwhile, new ships are being ordered and newbuilding prices go up. 

Overcapacity in the VLCC market have kept rate levels extremely low for several years. But now it looks like the shipping companies might be ready to start scrapping, as this years scrapping level sets a ten-year record, with 17 ships having been scrapped so far, says Peter Sand, chief analyst at Bimco, describing the development as very positive:

"It's very positive, but it's also been expected for a long time. Looking at the rates, they've been declining for something like three or four years straight. So tonnage had to be scrapped," he tells ShippingWatch.

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