South Korea's plan to bring forward its ban on single-hulled tankers using its waters has been greeted cautiously by industry players here. Most said that the decision was not unexpected. However, it is still putting downward pressure on the secondary market for single-hulled tankers, said Fearnleys Asia managing director Jonathan Le Feuvre. Charter rates for one and two-year periods for double-hulled tankers are said to be going up as the industry understands that the end really is at hand for single-hulled tankers, with a total shift to double-hulled tankers by 2010.
Industry association Intertanko acknowledged South Korea's move by saying: 'While Intertanko has not seen the official version of the new ruling, it is believed that the Jan 1, 2011 date established is consistent with Marpol Annex I regulation 20 (old Regulation 13G) in as much as single-hulled vessels will be phased out at their anniversary date during 2010 and so all single hulls will be phased out by Jan 1, 2011.'
According to Mr Le Feuvre, the shift away from single hulls started some time ago. It is being led by a combination of interests like banks and large oil companies which are seeking to dissociate themselves from the bad press these ships have generated of late.
Jens Martin Jensen, Singapore operations vice-president for top tanker operator Frontline, said: 'One can only hope it will be sooner because double hulls are the way to go and benefit the market and the environment.'
Much of the remaining single-hulled fleet has made its way to Asia where regulations are not as stringent as those in Europe. It was hoped that South Korea, along with India and Thailand, would remain some of the last few places these tankers would be allowed to operate.
A number of single-hulled tankers are still being operated by South Korean companies and it was thought that the regulators would be more lenient because of this. But the disastrous oil spill caused by the Hebei Spirit off South Korea last month seems to have forced the authorities' hand.
Figures from major broker Fearnleys Asia show that double-hulled tankers continue to be a minority among the vessels traded into much of Asia. For the second quarter of 2007, just 26 per cent of the tankers discharging in South Korea were double-hulled. There was a similar figure for India, followed by Thailand (37 per cent), Taiwan (40 per cent) and the Philippines (46 per cent).
Much of the effect of the recent move has already been factored in, and single-hulled tankers are already rapidly being phased out either through conversions to dry bulk carriers or as offshore platforms for oil rigs. With new ships arriving, it is certainly possible for South Korea to carry out the ban if it is implemented in phases as planned. 'But if it is to happen overnight, it would be a problem here,' said B+H Equimar (Singapore) managing director Steffen Tunge.
It seems certain that 'the last hurrah for sales and purchase for single hulls', as Mr Le Feuvre put it, will be in the first quarter of 2009. Then the old single-hulled tankers will be heading for the scrapyard.
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