- Ship hire rates likely to benefit as the rate of suspended vessels to retrofit scrubbers increases.
- Clarksons says 0.9% of VLCC fleet and 0.3% of the capesize fleet suspended for scrubber installations.
- Capesizes added $1,000 to daily earnings to hit $15,000 per day due to scrubber retrofits.
- Clarksons data has 60 scrubber installations for capesize ships, with 186 in January 2020, and 253 by mid-2020.
- Controversy over the use of closed or open loop units.
A new research shows that ship hire rates are likely to benefit as the rate of vessels taken out-of-service to retrofit scrubbers increases, reports Ship and Bunker.
Vessels suspended for Scrubber installations
Research outfit Clarksons has said that 0.9% of the very large crude carrier (VLCC) fleet and 0.3% of the capesize fleet were out-of-service in June for scrubber installations.
Had those ships remained in function, Clarksons said that VLCC daily earnings would have averaged around $19,000 in June, an increase of $3,000 pushed up by the absent tankers.
The report mentioned that capesizes added $1,000 to daily earnings to hit $15,000 per day due to scrubber retrofits.
Scrubber installations for capesize ships
Scrubber installations are likely to increase in the latter half of 2019 and continue into 2020.
Clarksons data has 60 scrubber installations for capesize ships as of June 25, with 186 in January 2020, and 253 by mid-2020.
Use of high sulfur fuel oil
Scrubbers allow ships to continue to use high sulfur fuel oil despite the new 0.5% sulfur cap on bunker fuel in place from the start of next year.
Open and Closed loop units
However, the equipment increases a ship’s weight occupying more space. At the same time, there is a dispute over open or closed loop units.
Open loop units have wash water expelled into the open sea while the latter keeps it on-board for later disposal in port.
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Source: Ship and Bunker
