Maybe something new will help a few of the ships. For the most part the sulfur regs need either more expensive bunker fuel or a very expensive upgrade. I haven't seen anything cheap, yet, for the ballast systems. Unless spot rates go through the roof, my guess is there will be both scrapping and upgrades depending on vessel age. Both bring a reduction in supply. Scrapping for the obvious reason. Upgrades require docking for some amount of time, which translates into less tonnage available. Both of these lead to lower tonnage available and would move spot rates higher even for a short-term period. Between sulfur and BWTS upgrade, owners could spend $4-$6 million. That could easily be 50+% of the ship's value. Tough choice to make to either scrap and buy new or upgrade.
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