Brokers said the vessel in question is the 1995-built 130,000-cbm, HL Pyeongtaek, previously known as Hanjin Pyeongtaek. The steam LNG carrier was sold on “as is” basis for delivery
He said a lot of these steamships were fixed on 20, 25-year charters, and they are rolling off these charters in the coming years, with about 75 of these ships being returned from long-term charters in the next 24 months,
“What we expect will happen here is a mass EEXI-tinction. So EEXI means Energy Efficiency for Existing Ships Index, which is part of the IMO rules to reduce greenhouse gas emissions for the shipping sector,” he said.
Kalleklev said these ships are now “technically and commercially obsolete, and we do think scrapping activity will take up, and which we do think will rebalance the market in 2027.”
He said that historically, there has been very limited scrapping demand.
“But as mentioned with all these steamships coming off charters, in this kind of market balance we assume 53 of the 75 ships to be removed from the market,” he said.
“This could be more if the market stays soft. It’s very expensive to take a steamship through a 25-year special survey,” he said.
GTT CEO Jean-Baptiste Choimet recently told LNG Prime that the French LNG containment giant believes the replacement market is poised for significant growth over the next decade, driven by the aging LNG fleet, the demand for greater efficiency, and increasingly stringent environmental regulations.
“Out of the current LNG carrier (LNGC) fleet of approximately 700 vessels, more than 300 will surpass 20 years of service within the next 10 years, and around 200 of those will exceed 25 years,” Choimet said.
This creates a “substantial need” for replacement, he said.
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