Phase Out of Single-Hull Tankers Strains Worldwide Capacity

This year, ship owners must scrap 169 tankers with a combined capacity of 6.9 million tons, which is about 2 percent of the world's tonnage. By 2010, almost 1,402 tankers, 104.6 million tons or a quarter of global capacity, must be scrapped.



The problem is that shipyards around the world are backlogged, and many new tankers that are currently under construction won't be delivered until 2008. Additionally, part of the problem is that shipyards find container ships and LNG carriers more profitable to build.



In Europe, after the "Prestige" sank off the coast of Spain spilling 77,000 tons of fuel oil, the E.U. accelerated the phase out of single-hulls. If the current schedule becomes too drastic, individual flag states may authorize single-hull tankers less than 25 years old to carry on trading until 2015.



However, many port state authorities are taking matters into their own hands by banning single-hulls. For instance, Singapore demands 24 hour notice of single-hull tankers entering its waters, and Korea has simply banned all single-hull tankers over 5,000 tons.



A further complication of the phase out of single-hull tankers concerns the environmental issues about which Greenpeace is challenging the United Nations. The dismantling of old tankers in Asia and Turkey has been heavily criticized by the organization, which says that workers in China and India break up tankers filled with toxic chemicals, which is an unacceptable situation.