Younger vessels generally have capital costs still attached to them and the revenues from sellingthem for scrap are unlikely to be high enough to cover theloan repayments for assets that nolonger exist.With the outlook for ton-mile demand still uncertain, tanker owners need to consider a scenario in which they have to absorb a sizeable proportion of extra costs, at least during the 2020 transition period, and prepare accordingly.“Owners are naive to think their earnings this year will be the same next year in light of higher fuel costs, " said a chartering manager with one of the world's largest ship owners.