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Thursday, 12 August 21
ONLY 3 VLCCS SOLD FOR DEMOLITION IN 2021 AS SECONDHAND PRICES TEMPT - BIMCO
 During the first seven months of 2021, only three actively trading Very Large Crude Carriers (VLCCs) have been sold for demolition. The current market for seaborne transportation of crude oil is weak and has caused freight rates to drop to multi-year lows. Despite this, crude oil tanker shipowners are not seizing the opportunity to reduce capacity and send less efficient units to the demolition yards.
The subdued demolition activity is seen at a time when steel prices offered in Bangladesh, India, and Pakistan – the world’s top ship demolition locations – are at an all-time high. The price of steel from ship demolition is supported by high steel prices in general as well as the limited number of ships heading for demolition.
In addition to the three actively trading VLCCs demolished in the first seven months of the year, five retired VLCCs working as Floating Storage and Offloading units (FSOs) in recent years have been demolished.
However, as they are not actively trading, the demolition of these five VLCC (FSO)s does not affect the demand-supply imbalance, i.e., the freight rates. The average age of the scrapped VLCCs used as FSOs is 24 years while the average age for the three actively trading VLCCs is 22 years.
Owners take advantage of an attractive secondhand market
The lethargic pace of VLCC demolition is also explained by attractive prices for older ships in the secondhand market. According to VesselsValue, 69 VLCCs have changed hands in the Jan-July 2021 period, compared with 91 for the full year of 2020.
To some extent, what we see now is like what we saw in the period that followed the six quarters of high oil tanker earnings from Q4 2014 through Q1 2016. Following this it was not until Q3 2017 that we began to see a pick-up in demolition for VLCCs.
Time has proven that it takes time for shipowners’ demolition decision to mature, and that a weak market right in the wake of a strong one is not enough to take the final step and go for demolition.
“The low demolition level seen in the first seven months of the year for crude oil tankers surely takes some by surprise. Some are wondering why shipowners are not demolishing the excess fleet when freight rates have been sluggish for the past year,” says Peter Sand, BIMCO’s Chief Shipping Analyst.
“The reason behind this is two-fold. Firstly, the strong earnings enjoyed by everyone in the crude oil tanker shipping sector last year leaves no owner short of cash. Secondly, as secondhand prices exceed even the record-high prices offered for demolition steel, shipowners are more inclined to keep their tankers afloat and changing hands, rather than sending them to the demolition yards,” says Sand, adding:
“Yet, nothing is straightforward as oil product tankers, on the other hand are heading for a record-high level of fleet demolition in 2021.”
Source: BIMCO, By Peter Sand, Chief Shipping Analyst
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Wednesday, 08 September 21
MARKET INSIGHT - INTERMODAL
Last August was extremely hot in the dry bulk market with rates rising at levels that we have years to witness. The dry bulk index exceeded the 4,0 ...
Wednesday, 01 September 21
KOMIPO TO BUY 1.56 MILLION TONS OF 5600 NAR COAL OF AUSTRALIA OR SOUTH AFRICAN ORIGIN FOR 2022 - 2024
COALspot.com: Korea Midland Power Co., Ltd (KOMIPO) has issued an international tender for total 1,560,000 MT of Bituminous Coal to be used a ...
Wednesday, 01 September 21
MARKET INSIGHT - INTERMODAL
As the summer season is coming to an end, the dry bulk market continues to rally. The confidence that the outstanding freight market performance ha ...
Monday, 30 August 21
68% OF U.S. COAL FLEET RETIREMENTS SINCE 2011 WERE PLANTS FUELED BY BITUMINOUS COAL - EIA
In 2011, the United States had 317.6 gigawatts (GW) of coal-fired electric generation capacity. About 88.7 GW of that capacity was retired in the d ...
Friday, 27 August 21
ALL YOU NEED TO KNOW ABOUT COAL'S MASSIVE RALLY AND NEAR-TERM OUTLOOK - CNBCTV18
Australia’s thermal coal at Newcastle Port, the benchmark for the vast Asian market, has surged over 100 percent this year to trade above $16 ...
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- Medco Energi Mining Internasional
- Offshore Bulk Terminal Pte Ltd, Singapore
- Rashtriya Ispat Nigam Limited - India
- Chamber of Mines of South Africa
- Parry Sugars Refinery, India
- SMC Global Power, Philippines
- Intertek Mineral Services - Indonesia
- Romanian Commodities Exchange
- Kohat Cement Company Ltd. - Pakistan
- IHS Mccloskey Coal Group - USA
- Globalindo Alam Lestari - Indonesia
- Cement Manufacturers Association - India
- Star Paper Mills Limited - India
- TeaM Sual Corporation - Philippines
- Orica Australia Pty. Ltd.
- Indian Oil Corporation Limited
- Australian Commodity Traders Exchange
- White Energy Company Limited
- Ministry of Transport, Egypt
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Indika Energy - Indonesia
- Central Java Power - Indonesia
- Price Waterhouse Coopers - Russia
- McConnell Dowell - Australia
- Ministry of Mines - Canada
- Meralco Power Generation, Philippines
- Australian Coal Association
- Thai Mozambique Logistica
- Tamil Nadu electricity Board
- The Treasury - Australian Government
- Anglo American - United Kingdom
- Malabar Cements Ltd - India
- Larsen & Toubro Limited - India
- Siam City Cement - Thailand
- Leighton Contractors Pty Ltd - Australia
- South Luzon Thermal Energy Corporation
- India Bulls Power Limited - India
- Sree Jayajothi Cements Limited - India
- Kumho Petrochemical, South Korea
- Eastern Coal Council - USA
- Bhoruka Overseas - Indonesia
- Iligan Light & Power Inc, Philippines
- PetroVietnam Power Coal Import and Supply Company
- International Coal Ventures Pvt Ltd - India
- Bhatia International Limited - India
- Kobexindo Tractors - Indoneisa
- Metalloyd Limited - United Kingdom
- London Commodity Brokers - England
- Eastern Energy - Thailand
- PNOC Exploration Corporation - Philippines
- Directorate General of MIneral and Coal - Indonesia
- Central Electricity Authority - India
- Electricity Generating Authority of Thailand
- Mercuria Energy - Indonesia
- Sical Logistics Limited - India
- Alfred C Toepfer International GmbH - Germany
- Merrill Lynch Commodities Europe
- Power Finance Corporation Ltd., India
- Bukit Makmur.PT - Indonesia
- Savvy Resources Ltd - HongKong
- Therma Luzon, Inc, Philippines
- Videocon Industries ltd - India
- MS Steel International - UAE
- OPG Power Generation Pvt Ltd - India
- Bhushan Steel Limited - India
- VISA Power Limited - India
- The State Trading Corporation of India Ltd
- Bank of Tokyo Mitsubishi UFJ Ltd
- Semirara Mining and Power Corporation, Philippines
- Bulk Trading Sa - Switzerland
- GAC Shipping (India) Pvt Ltd
- Thiess Contractors Indonesia
- Krishnapatnam Port Company Ltd. - India
- Planning Commission, India
- Kalimantan Lumbung Energi - Indonesia
- Mjunction Services Limited - India
- Energy Link Ltd, New Zealand
- Asmin Koalindo Tuhup - Indonesia
- Kartika Selabumi Mining - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Dalmia Cement Bharat India
- ICICI Bank Limited - India
- ASAPP Information Group - India
- Parliament of New Zealand
- Petron Corporation, Philippines
- Orica Mining Services - Indonesia
- Singapore Mercantile Exchange
- PowerSource Philippines DevCo
- Standard Chartered Bank - UAE
- New Zealand Coal & Carbon
- The University of Queensland
- Chettinad Cement Corporation Ltd - India
- Toyota Tsusho Corporation, Japan
- Posco Energy - South Korea
- Ceylon Electricity Board - Sri Lanka
- Kepco SPC Power Corporation, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Rio Tinto Coal - Australia
- GMR Energy Limited - India
- Africa Commodities Group - South Africa
- Carbofer General Trading SA - India
- Mintek Dendrill Indonesia
- Cigading International Bulk Terminal - Indonesia
- Marubeni Corporation - India
- Oldendorff Carriers - Singapore
- GN Power Mariveles Coal Plant, Philippines
- Sarangani Energy Corporation, Philippines
- Indonesian Coal Mining Association
- Aditya Birla Group - India
- European Bulk Services B.V. - Netherlands
- Vijayanagar Sugar Pvt Ltd - India
- Sindya Power Generating Company Private Ltd
- Maharashtra Electricity Regulatory Commission - India
- Deloitte Consulting - India
- Formosa Plastics Group - Taiwan
- LBH Netherlands Bv - Netherlands
- SMG Consultants - Indonesia
- Maheswari Brothers Coal Limited - India
- Coastal Gujarat Power Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Ambuja Cements Ltd - India
- Barasentosa Lestari - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Binh Thuan Hamico - Vietnam
- Independent Power Producers Association of India
- AsiaOL BioFuels Corp., Philippines
- Madhucon Powers Ltd - India
- Baramulti Group, Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Economic Council, Georgia
- Billiton Holdings Pty Ltd - Australia
- San Jose City I Power Corp, Philippines
- Georgia Ports Authority, United States
- Essar Steel Hazira Ltd - India
- IEA Clean Coal Centre - UK
- PTC India Limited - India
- Vizag Seaport Private Limited - India
- Global Coal Blending Company Limited - Australia
- Attock Cement Pakistan Limited
- Kapuas Tunggal Persada - Indonesia
- Edison Trading Spa - Italy
- Manunggal Multi Energi - Indonesia
- Jindal Steel & Power Ltd - India
- Mercator Lines Limited - India
- Salva Resources Pvt Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sakthi Sugars Limited - India
- Indo Tambangraya Megah - Indonesia
- Trasteel International SA, Italy
- Coalindo Energy - Indonesia
- Antam Resourcindo - Indonesia
- SN Aboitiz Power Inc, Philippines
- Vedanta Resources Plc - India
- Bukit Baiduri Energy - Indonesia
- Wilmar Investment Holdings
- Lanco Infratech Ltd - India
- Kideco Jaya Agung - Indonesia
- Altura Mining Limited, Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Kaltim Prima Coal - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Bangladesh Power Developement Board
- Uttam Galva Steels Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Makarim & Taira - Indonesia
- Xindia Steels Limited - India
- Directorate Of Revenue Intelligence - India
- Borneo Indobara - Indonesia
- Timah Investasi Mineral - Indoneisa
- Samtan Co., Ltd - South Korea
- Agrawal Coal Company - India
- GVK Power & Infra Limited - India
- Aboitiz Power Corporation - Philippines
- Latin American Coal - Colombia
- Electricity Authority, New Zealand
- Siam City Cement PLC, Thailand
- Indogreen Group - Indonesia
- Interocean Group of Companies - India
- Wood Mackenzie - Singapore
- Grasim Industreis Ltd - India
- Energy Development Corp, Philippines
- Bayan Resources Tbk. - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Gujarat Electricity Regulatory Commission - India
- Coal and Oil Company - UAE
- Karbindo Abesyapradhi - Indoneisa
- Renaissance Capital - South Africa
- Jaiprakash Power Ventures ltd
- Heidelberg Cement - Germany
- Indian Energy Exchange, India
- Pipit Mutiara Jaya. PT, Indonesia
- Ind-Barath Power Infra Limited - India
- Simpson Spence & Young - Indonesia
- Pendopo Energi Batubara - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Global Business Power Corporation, Philippines
- Gujarat Sidhee Cement - India
- CNBM International Corporation - China
- Ministry of Finance - Indonesia
- Bharathi Cement Corporation - India
- Global Green Power PLC Corporation, Philippines
- Tata Chemicals Ltd - India
- Karaikal Port Pvt Ltd - India
- Semirara Mining Corp, Philippines
- Port Waratah Coal Services - Australia
- Commonwealth Bank - Australia
- Banpu Public Company Limited - Thailand
- Straits Asia Resources Limited - Singapore
- Meenaskhi Energy Private Limited - India
- Holcim Trading Pte Ltd - Singapore
- CIMB Investment Bank - Malaysia
- Sojitz Corporation - Japan
- Minerals Council of Australia
- Riau Bara Harum - Indonesia
- Goldman Sachs - Singapore
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