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Demolition Full Year Review

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Demolition Full Year Review

Using VesselsValue data, Joey Daly, Cargo Analyst, has analysed the changes and trends across the Shipping markets in 2021, which resulted in a diverse demolition market. This article looks at the varied scrapping numbers for all Cargo types, rising scrap steel prices, and their respective buyers in the Indian Subcontinent.

“Tankers dominated the demolition market in 2021 with 301 vessels sold for scrap, accounting for 59% of all cargo vessels demolished. The comparatively low number of Bulkers scrapped last year, at 59 vessels, comprised 11% of the scrapped fleet, whereas the 11 Container vessels sold for demolition made up only 2%. The surge in Tanker scrapping represents a remarkable 242% increase from 2020, when a mere 88 Tanker demolition deals were closed.”

“Bulker demolition sales were down from 132 vessels in 2021, a decrease of 55% due to the 10 year highs seen previously in the charter market throughout 2021, which saw owners capitalising on the unprecedented rates. However, the most impressive decline to scrapping numbers came from the Container market, which saw an 87% reduction in scrapped vessels, from 83 vessels in 2020 to 11 in 2021. With rates during 2021 at historic highs, the low scrapping numbers for this vessel type are hardly surprising…”

Figure 1: Vessel scrapping by type and year.

Read the full report here.

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