Source: Intermodal According to Mr. Yiannis Parganas, Intermodal’s Head of Research Department, “in the first six months of 2024, the dry bulk sector saw 31 vessels decommissioned for scrapping. This included 4 Capesize, 10 Panamax, 10 Supramax, and 7 Handysize vessels.
This level of demolition activity is notably lower compared to previous years, with the exception of 2022 when only 18 vessels were scrapped. Over the last five years, the average for the same period has been 42 vessels, with 2020 marking the peak of the 5-year scrapping activity as 62 vessels were decommissioned from January to June. Notably, the number of Capesize vessels scrapped this year—only four—was the lowest recorded since the subdued activity of 2008”.
Meanwhile, “in the tanker sector, the demolition activity was notably subdued, with only four vessels (two VLCCs, one Suezmax, and one Handy) scrapped, marking the lowest level of tanker scrapping on record. Since the third quarter of 2022, demolition activity has been remarkably low, particularly following the substantial number of demolitions in 2021, which totaled 178. Since that peak, only 31 tankers have been scrapped—12 in the latter half of 2022 and a mere 15 throughout 2023, setting a record for the lowest annual demolition activity.
Should the current trend persist, 2024 is poised to surpass 2023 as the year with the least demolition activity within the sector”, Parganas said. Source: Intermodal Intermodal’s analyst concluded.