Old but Gold? Maintenance Strategies and Cost-Use Evaluation for Aging Ships

My name is Davide Ramponi, I’m 20 years old and currently training as a shipping agent in Hamburg. On my blog, I take you with me on my journey into the fascinating world of shipping. I share insights, practical lessons, and the day-to-day knowledge I gain as I work toward becoming an expert in the field of Sale and Purchase – the trade with ships.

We often hear that the future of shipping lies in modern, energy-efficient, eco-designed vessels—and that’s certainly true. But what about the ships that are already in service? The ones built 15, 20, or even 25 years ago that still sail reliably across the globe?

In a world of stricter regulations and higher fuel prices, older ships can still be valuable assets—if managed wisely. With the right maintenance strategies, upgrades, and economic mindset, many aging vessels can remain profitable and compliant well beyond their expected lifecycle.

In this post, I’ll take a deep dive into the maintenance and operational decisions surrounding older ships. We’ll explore when it makes sense to invest, common issues and solutions, what kinds of upgrades offer real value, and how to weigh the cost of repair versus replacement. Plus, I’ll share real examples of successful aging fleet strategies.

Let’s explore the life after midlife—ship edition.

When Is It Worth Investing in an Older Ship?

The first question every owner faces when a ship reaches 15+ years is: "Do we maintain, upgrade—or replace?"

The answer isn’t one-size-fits-all. It depends on:

• Current market conditions (freight rates, scrap prices, newbuild slots)

• Technical condition of the ship

• Upcoming regulatory requirements

• Operational profile (tramp vs. liner, long-haul vs. short-haul)

• Financing options and company strategy

📌 Rule of thumb: If the vessel is structurally sound, has a stable trading pattern, and can be upgraded to meet regulations cost-effectively, it may still deliver strong returns.

🧭 Example: A 17-year-old Aframax tanker was recently retrofitted with energy-saving devices and remained on profitable long-term charter. Meanwhile, a 13-year-old feeder container vessel with high fuel consumption and poor hull condition was scrapped because retrofitting costs outweighed its earnings potential.

Typical Problems in Older Ships—and How to Solve Them

As ships age, they inevitably experience more frequent issues. But not all problems are fatal—many can be resolved with targeted investments and smart maintenance planning.

⚙️ 1. Corrosion and Steel Loss

The issue: Ballast tanks, decks, and cargo holds develop corrosion, particularly if coatings have worn down over time.

Solution:

• Early detection via ultrasonic thickness measurements

• Blasting and recoating during dry-dock

• Selective steel renewal based on class surveyor recommendations

💡 Tip: Partner with classification societies to get extended survey windows by showing proactive maintenance efforts.

🔧 2. Outdated Machinery and Spare Parts Shortages

The issue: Original equipment manufacturers (OEMs) may stop producing parts for older engine models.

Solution:

• Identify alternate suppliers or second-hand parts markets

• Consider reconditioning critical components

• Retrofit auxiliary systems (e.g., pumps, purifiers) with newer, more efficient models

💨 3. High Fuel Consumption

The issue: Older engines often consume significantly more fuel compared to modern vessels.

Solution:

• Install shaft power limitation (ShaPoLi) or engine power limitation (EPL)

• Clean or replace propellers and apply advanced hull coatings

• Install energy-saving devices like pre-swirl ducts or PBCFs

📌 Bonus: These measures can also support **EEXI and CII** compliance.

⚠️ 4. Compliance Challenges (e.g. MARPOL, IMO 2020)

The issue: Fitting scrubbers or installing ballast water treatment systems (BWTS) can be expensive.

Solution:

• Focus on vessels with higher earning potential to justify CapEx

• Time installations with scheduled dry-docks to reduce off-hire

• Use leasing options for compliance technology to avoid upfront costs

Technical Upgrades: What Makes Sense—and What Doesn’t?

Not every upgrade pays off. Some enhancements improve fuel efficiency or compliance, while others only add marginal benefits or strain the budget.

Let’s break it down:

✅ Upgrades That Usually Make Sense

• BWTS Installation: Mandatory under IMO regulations. Necessary to trade.

  Hull cleaning and coating: Immediate impact on performance and fuel consumption.

• EPL/ShaPoLi: Low-cost way to meet EEXI.

• Energy-saving devices (ESDs): Propeller upgrades, ducts, or fins often pay back within 1–3 years.

• Automation of monitoring systems: Helps manage maintenance more proactively.

❌ Upgrades That Often Don’t Pay Off

• Full engine replacement: Costly and complex for older hulls. Often not economical.

• Dual-fuel conversions: Very expensive unless already partially LNG-ready.

• Interior renovations (on cargo ships): Adds little to value unless it's a passenger vessel or high-end cruise ship.

📌 Golden rule: Calculate ROI based on remaining trading life, not just the technical benefit.

Repair vs. New Construction: Economic Analysis

At some point, every owner faces the tough decision: Keep fixing—or build new?

Here’s how to evaluate the economics:

💰 Cost of Major Repair

Let’s say a 16-year-old Panamax bulker needs:

• Steel renewal ($250,000)

• BWTS installation ($400,000)

• Dry-dock and class renewal ($300,000)

• Miscellaneous upgrades ($150,000)

Total: ~$1.1 million

If the ship can earn $10,000/day and has 5 more viable years, that’s potentially $18 million in revenue—worth the investment.

🏗️ Cost of Newbuild

A new Panamax today might cost $35–40 million, with a 2–3 year delivery time and higher financing costs. But it comes with:

• Better fuel efficiency

• Lower emissions

• Longer earning horizon

Conclusion: If your strategy is long-term, and markets are strong, building may make sense. For tactical trading in the short to medium term, well-maintained older ships are still competitive.

Examples of Successful Older Ship Strategies

✅ Case 1: Bulk Carrier with Smart Upgrades

A Greek company upgraded a 2006-built Capesize with:

• EPL

• New propeller

• Weather routing software

Result: Improved fuel economy by 8%, lifted CII rating from D to C, and secured a 6-month charter at a premium rate.

✅ Case 2: Aging Tanker, Limited Repairs

An MR tanker built in 2005 was near end-of-life. The owner:

• Installed a basic BWTS

• Passed dry-docking

• Traded the vessel for 24 more months before scrapping at market peak

Return: ~$2 million above book value by timing the sale right.

✅ Case 3: Maintenance + Market Timing

A feeder ship was consistently maintained with:

• Annual underwater hull cleaning

• Careful crew training on fuel-saving

When charter demand spiked, the ship fetched high rates and was later sold with class intact—netting a solid profit.

Final Thoughts: The Art of Keeping Older Ships Profitable

Older ships require more attention, but they can still offer value—if managed with intention and foresight.

⚓ Assess each ship individually based on its technical condition, market outlook, and regulatory exposure.

🧰 Invest selectively in upgrades with clear ROI.

📉 Don’t over-capitalize—especially if scrapping value is rising.

📈 Combine good maintenance with smart timing to maximise resale and charter potential.

Have you worked with older ships before? What strategies worked—or didn’t work—for you?

Share your experiences and questions in the comments—I’d love to hear from you!

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