China Merchants Energy Shipping scraps old VLCC

CMES will pocket RMB79.35m ($12.76m) from the sale of the 284,600-dwt VLCC to scrapyard in China. The elderly vessel, Kai Li, was built in 1993 at Japan's Sasebo Heavy Industries.

The shipowner added that Kai Li is left with an operational lifespan of four years before it reaches the mandatory scrap age of 25.

“Kai Li is 21 years old and is among a handful of VLCCs more than 20 years old that are operating in the market. Demand for such old VLCCs is low,” CMES said in a statement to the stock exchange.

In February this year, CMES also sold a 22-year-old VLCC Kai Ye to the scrapyard for the same reason.

The Chinese shipowner pointed out that its fleet renewal programme will welcome 10 new eco-friendly VLCCs, slated for deliveries in phases starting from October 2014.