The new International Maritime Organisation (IMO) regulation on ballast water management will[ds_preview] trigger further scrapping activity in tanker shipping market, according to shipping consultancy Drewry. Weakness in freight rates will increase tanker shipping demolitions over the next two years, with the trend accelerating in later years as a result of the IMO regulation on ballast water, according to the latest edition of the Tanker Forecaster, published by global shipping consultancy Drewry.
Despite the recent decline in tanker freight rates, demolitions have not yet picked up. Scrapping is expected to increase in the next two years, once owners start feeling the heat of persistent low freight rates. But as the fleet is relatively young, demolitions will be moderate, say Drewry.
The new IMO regulation on ballast water management will require that all vessels going into deep sea have in-built Ballast Water Treatment Systems (BWTS) by September 2017.
