Cleaves Securities expects some 26m dwt of tanker tonnage to head for the scrapyard over the next two-and-a-half years.
The bank anticipates scrapping of 6m dwt this year, 12m dwt in 2021 and 8m dwt in 2022.
“Scrapyards have significantly reduced activity year-to-date due to the Covid-19 outbreak, but we expect scrapping to be a substantial factor in 2021 and 2022,” the bank’s head of research, Joakim Hannisdahl, said.
