According to Clarkson Research, the LNG shipping sector is under pressure, with nearly 60 vessels now idle and uncompetitive in today’s market. In a notable shift, Korean shipowners are scrapping older, less efficient LNG steam turbine vessels.

Four ships—Hyundai Aquapia, Hyundai Technopia, HL Ras Laffan, and HL Sul—built around 2000, were sold for demolition at approximately $565 per LDT, netting around $19.2 million each.

These disposals reflect a growing trend: seven LNG carriers (830,000 cbm) have already been scrapped by May 2025, nearly matching 2024’s full-year total of eight. The widening performance gap between legacy steam vessels and modern two-stroke or TFDE units, alongside tighter emissions and fuel efficiency standards, is accelerating fleet renewal.

Spot rates highlight this divide—TFDE ships earn around $15,000/day, while modern two-stroke carriers fetch close to $30,000/day. Older ships are increasingly unsustainable, with many likely facing retirement as demand lags and idle tonnage mounts.