Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Shipowner Is Mothballing First New Tanker Since 1980s

Sept. 23 (Bloomberg) -- A shipowner will mothball a newly built tanker for the first time since the 1980s as a glut of the ships erodes earnings.

The aframax tanker, capable of carrying about 600,000 barrels of crude, will be sent to a natural harbor in Malaysia, Carl Schou, Kuala Lumpur-based president of Wilhelmsen Ship Management, which will oversee the deactivation, said by phone and e-mail. He declined to identify the ship because the details are private.

The last time new tankers were delivered straight from shipyards to anchorages, a process known in the industry as lay up, was in the 1980s, with owners sending the vessels to fjords in Norway, Eleusis Bay in Greece and the waters off Malaysia and Sri Lanka, Hong Kong-based Charles de Trenck at Transport Trackers, an adviser on shipping and trade flows, said by e-mail.

The particular kind of mothballing for this ship is called warm lay-up, which normally removes vessels from trading for between three and four months, Schou said.

To contact the reporter on this story: Michelle Wiese Bockmann in London at mwiesebockma@bloomberg.net

To contact the editor responsible for this story: Alaric Nightingale at anightingal1@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.