The Partnership is planning to install EGCS, also known as ‘scrubbers’, on up to 14 of its larger vessels, comprising 10 container ships, 3 crude tankers and 1 bulk carrier.
Scrubber installation
The final decision regarding these vessels is expected to be reached within the coming months and the installation of the scrubbers is expected to be completed throughout 2019 and 2020.
Agreement terms
In connection with the agreement to equip its fleet, five 5,000 TEU container vessel series with EGCS, namely the ‘Hyundai Prestige’, ‘Hyundai Premium’, ‘Hyundai Paramount’, ‘Hyundai Privilege’ and ‘Hyundai Platinum’ (the “HMM Vessels”), the company has entered into a series of agreements (the “Scrubber Agreements”) with Hyundai Merchant Marine (“HMM”), the charterer of the vessels, to increase the daily charter rate by $4,900 for each vessel.
Increase in charter rate
The increase will be effective from January 1, 2020, or, if later, the installation date of the scrubbers until the expiry of each charter in 2024 and 2025, as applicable. The HMM Vessels are currently earning $23,480 gross per day following a restructuring agreement with HMM dated July 15, 2016. Under the restructuring agreement, the charter rate is set to be restored to the original daily gross rate of $29,350 from January 1, 2020 and will increase further to $34,250 once the scrubbers are installed in accordance with the Scrubber Agreements.
Did you subscribe for our daily newsletter?
It’s Free! Click here to Subscribe!
Source: Capital Product Partners
