Bloomberg News

Older Supertankers May Soon Be Demolished, Dahlman Analyst Says

August 30, 2011

Aug. 30 (Bloomberg) -- Supertankers aged 15 years or older may soon be demolished because their value as scrap has risen relative to what they would fetch for continued trading, New York-based investment bank Dahlman Rose & Co. said.

Very large crude carriers, or VLCCs, are worth about $19 million as scrap while carriers built before 1996 would fetch $20 million to $25 million when sold for continued trading, shipping analyst Omar Nokta said in an e-mailed report today. That’s the highest percentage since the early 1980s and may incentivize demolitions, he said.

--Editors: John Deane, Alastair Reed

To contact the reporter on this story: Alaric Nightingale in London at anightingal1@bloomberg.net

To contact the editor responsible for this story: Stuart Wallace at swallace6@bloomberg.net


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