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New to the game, 1st campaign. Other navies are scrapping ships from the 1880s. In general, what criteria should one use on whether/when to scrap any ships?

Hard to say for RTW 3 ...

In RTW 2 I scrapped ship when I assumed that they were easy prey for the enemy. Best example are old pre-dreadnought which were to slow to escape, had no torpedo protection and thin deck armor. So a loss in abattle was very likely and would gave significant points in a battle for the enemy.

I used old cruisers very long in distanmt colonies and DDs were often rebuild to submarine-hunter ... slow but armed with dc and hedgehogs to be put in TP.

Now, the speed of the ships decreases more and more and machine rebuild is costly. I will now more often scrap ships as the a sidgificantly decreased speed will make them useless.