Company: ASC
Filing Date: 2025-03-07
Form Type: 20-F
Source: 0001558370-25-002500
Chunk: 60

Company: Ardmore Shipping Corp
Filing Date: 2025-03-07
Form: 20-F
Item: Item 4
Chunk 60
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 MR product tankers are due for delivery in 2025, a further 6.3 million dwt in 2026, 3.8 million dwt in 2026 and 0.7 million dwt in 2028 and future years. The MR fleet is expected to grow by 4.5% in 2025 and 5.5% in 2026, assuming no scrapping.

The other factor that will affect future supply is demolition activity. The volume of scrapping is primarily a function of the age profile of the fleet, scrap prices in relation to the current and prospective charter market conditions, operating, repair and survey costs, and environmental regulations. Following low scrapping activity in 2019 and 2020, demolition surged in 2021 in response to relatively weak crude and product tanker earnings with 139 tankers totaling 10.3 million dwt sold to scrapyards (including 48 MR tankers totaling 2.0 million dwt). High tanker rates in 2022 curbed demolitions with 41 tankers totaling 3.1 million dwt demolished (including 12 MR tankers totaling 0.5 million dwt). High freight rates kept the demolitions muted in 2023 with 11 tankers totaling 0.3 million dwt demolished (including 6 MR tankers totaling 0.2 million dwt). Demolitions remained muted in 2024 with 13 tankers totaling 1.9 million dwt demolished (1 demolitions for MR tankers).

Table of Contents

In the long run, regulations such as CII may squeeze tonnage availability due to scrapping of old non-complaint vessels and slow steaming. Meanwhile, the share of alternative-fuel capable vessels in the orderbook continues to increase as shipowners aim for a more efficient fleet. In addition, these regulations may also lead to increased scrapping and fleet renewal.

World Tanker Fleet and Orderbook: December 31, 2024

                                                                                                 Orderbook Delivery                      
  Vessel Type/Class                            Fleet                                               Schedule (M Dwt)                      
                                              Number      M Dwt      M Dwt      % Fleet Dwt                    2025      2026      2027  
  ULCC/VLCC                                      905      278.8       26.0             9.3%                     1.5       7.5      12.7  
  Suezmax                                        647      101