COSCO announced this week that it scrapped 17 of its older vessels between September and December of 2014 – for a total of USD 51.2 million. The sales were mostly made up of containers and bulkers totaling over 900,000 DWT.
Having scrapped well over 50 vessels over the course of the year under the government subsidies scheme implemented at the end of 2013, the likes of COSCO have managed to significantly lower the average age of their fleets.
It is expected to be another busy year of scrapping with the scheme still in place until the end of 2015. State owners with Chinese flagged vessels receive a USD 150/GRT premium on the scrap price in China and a USD 150/GRT discount on the subsequent new-building built in China.
Source: steel guru. 20 Jan 2015