H2 2019 could see an uptick in Europe's shipping sector, as vessel space will tighten as scrapping reaches its highest levels for years and replacement newbuild output slows. Up to half of 19,000-20,000 DWT stainless steel vessels are approaching the 20 year age in which ships are usually scrapped. The European Commission has said that it is considering a proposal from Germany to scrap up to 40,000 tonnes of old ships.
H2 2019 could see an uptick in Europe's shipping sector, as vessel space will tighten as scrapping reaches its highest levels for years and replacement newbuild output slows. Up to half of 19,000-20,000 DWT stainless steel vessels are approaching the 20 year age in which ships are usually scrapped. Moreover, growing Asian demand for methanol will exacerbate the trend as larger volumes of gas are transported on larger DWT tankers, creating a positive knock-on effect for Europe's smaller tankers, which will be needed to bring cargoes into port.