Despite almost 30% of the year remaining, LNG tanker recycling has already set an annual record.
Clarksons Research reports that 0.8 million deadweight tonnes of LNG tankers were sent for recycling this year, primarily due to the scrapping of old steam turbine units. This is not an isolated incident, but a trend that has been observed over the past twelve months.
Weak demand for old steam turbine LNG tankers has resulted in many vessels remaining unsold and being decommissioned, leaving recycling as the only option.
ℹ Currently, LNG tankers bound for South Asian shipyards are virtually the only source of revenue for ship recycling companies. Other segments, such as container ships, are on track for the lowest scrapping rates in two decades.
Clarksons also highlights the negative sentiment in the scrapping market overall, driven by persistent currency volatility, tariff adjustments in the Indian subcontinent, weakening steel demand, and a shrinking tonnage supply.
What does this mean for the industry?
1️⃣ The LNG fleet is rapidly changing – older steam turbine ships are being decommissioned and replaced by modern DFDE, ME-GI, and X-DF vessels.
2️⃣ Owners of legacy tonnage are exhausting commercial opportunities.
3️⃣ For seafarers, the real opportunities are shifting toward modern LNG carriers, where technology, contracts, and wages are on a completely different level.
What do you think – is this wave of scrapping just a cycle or the definitive end of steam turbine LNG carriers?
Author: @iPr1nce
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