Eco-MR Time Charters Command Extra $8,000 Per Day

The report says shipowners must consider many factors in ordering eco-ships

The average Trans-Atlantic MR time charter equivalent earnings since the start of the year have been about $8,000 higher for eco-ships than for traditional vessels, according to global broker Poten & Partners' publication Weekly Tanker Opinion.

Since the start of 2012, fuel costs have equalled 60 percent of top-line voyage revenue on the Trans-Atlantic MR trade, and the use of eco-ships can save $3,660 per day based on travel at 12.5 knots laden.

"At this rate, it is not surprising to see why eco vessels are effectively commanding a premium of a few thousand dollars per day in the time charter market," Poten & Partners said.

"It is also interesting to note, however that the spot market Worldscale rates do not reflect a two-tiered market in any way.

"Under present conditions, the net benefits of the eco design are solely recognized by the shipowner in the form of direct fuel savings or the ability to bid more competitively on business."

Despite the appeal of eco-ships, however, the firm warned that changing market conditions could make the vessels less attractive, in part because it is not clear how well the fuel-saving ships can perform at high speeds.

"Hull forms and other technical modifications are designed to be optimized at lower speed ranges," it said.

"Although market conditions that would warrant faster speeds seem to be a distant memory, they should be a consideration when investing in the lifetime of a 25-year asset."

Fuel-saving ships are the subject of much debate, raising questions about the value of various design improvements, according to a recent discussion on the subject provided to Ship & Bunker by Fathom.