Scrapping levels slow as demand rises for older tonnage
Decreased Scrapping of Older Tugs and Workboats Due to Rising Demand
Over the past six months, there has been a noticeable decline in the scrapping of older tugs and workboats. This trend is largely driven by the increased demand for towage, ship support, harbor operations, and offshore shallow-water work. As a result, many vessels over 30 years old are being retrofitted and upgraded instead of being scrapped.
Owners have found creative ways to keep these aging vessels operational, which has slowed down scrapping rates. According to Marcon International, only vessels that are too expensive to repair and unlikely to be sold are being demolished.
The demand for tugs and barges, especially those with specific features, has contributed to this decline in scrapping. Data from Sea-Web shows that while 2,396 tugs were scrapped by the end of May 2024, this figure is still part of a broader trend of fluctuating scrapping levels over the past five years.
Single-screw tugs, which have limited commercial use, continue to be scrapped as few buyers are interested. However, smaller and less valuable vessels like tugs and workboats are often kept inactive rather than being recycled, as they do not fetch as much value in the scrap market compared to larger ships.
