Owners' organisation Bimco has revealed only two panamax bulkers were sent for scrap in 2018.
Chief shipping analyst Peter Sand said smaller ships are living longer, with recycling activity slow this year.
Only 4.2m dwt of all types of dry cargo vessels had reached shipbreakers as of 17 December, down 71.6% compared to 2017.
"An almost total halt in panamax demolitions has been an important factor behind this fall, with demolition in every ship segment down," Sand said.
Panamax ships accounted for 23% of total dry bulk demolition last year, but in 2018 this figure was 3%.
This is the lowest for 11 years.
“The last year in which only two panamax ships were demolished was in 2007 when the dry bulk market was booming, and panamax demolition hasn’t been in single figures since 2010," Sand added.
"Historically, better freight rates lead to a decrease in demolition and with average earnings in the dry bulk market at their highest since 2011, owners are more likely to keep their ships sailing.”
The average age of bulkers being demolished has risen to reach 28.1 years, up from 24.7 years in 2017, according to Clarksons.
The average age for scrapped capesize ships over the course of the year was 23.8 years old, and panamax ships were on average demolished at 21.6 years of age.
The smaller ship sizes had a higher average age at demolition of 29.8 years and 31.9 years for handymax and handysize ships respectively.
