Americas News
Dual-Fuel Engines to Feature Increasingly in Box Markets
Ship Finance International (SFI) CEO Ole Hjertaker this week said at the CMA Shipping 2015 conference in Stamford, U.S., that dual fuel engines are likely to gain in popularity among box shippers in the coming years, Tradewinds reports.
However, he said many in the industry were still waiting to see if concerns over a lack of Liquefied Natural Gas (LNG) infrastructure, including bunkering facilities, will be addressed to make it a more attractive proposition.
"If you look at the liner companies, very few of the major carriers have adopted this technology, and it doesn't seem like they are in a rush," said Hjertaker.
"I suppose some are taking a 'wait and see' approach but I find the fact that so few have [equipped their containerships with dual-fuel engines] very interesting."
He pointed to the fact that shippers are also concerned that LNG technology is expensive and can reduce the cargo space aboard ships.
In addition he said LNG had competition from alternatives, such as switching to lower sulfur fuel.
SFI, which oversees a fleet of around 70 ships including more than 20 container ships, considered LNG-fuelled vessels for its fleet but decided against the move primarily because its customers did not want to shoulder the investment, said Hjertaker, but the company would certainly consider it again.
"It comes down to cost and the customer."
He conceded there was already "no question" that the economics of LNG make sense for Jones Act vessels, which are likely to operate solely within the North American Emissions Control Area (ECA).
Last week, Boston Consulting Group said LNG could corner 27 percent of the global bunker market by 2025 with the container shipping industry most likely to adopt LNG bunkers first.
