World News
ESL Looks to LNG Bunkers for Dry Bulk Profitability
Finland-based ESL Shipping Oy (ESL) says it has placed a €60 million ($63.65 million) order for two liquid natural gas (LNG) propelled "extremely energy-efficient" 25,600 DWT bulkers.
"These new, ice-class 1A ships will be the first LNG-fueled large bulk carriers in the world, representing the latest in technology and innovation," says ESL, noting that the vessels, compared to current ships, will reduce CO2 emissions per tonne of cargo by more than 50 percent.
"Besides their environmental benefits, the cost savings provided by the new technology will also allow better profitability,” says Aki Ojanen, ESL's chairman and CEO of parent company Aspo Group.
The order is said to have been spurred by a long-term deal signed by ESL with Swedish steel manufacturer SSAB for the transport of 6 to 7 million tonnes of inbound raw material within the Baltic Sea and from the North Sea annually.
"Together we shall make shipping more sustainable and environmentally aware than ever before," said Mikki Koskinen, Managing Director of ESL, of the agreement and resulting ship orders.
It is reported that the two bulkers are being constructed by Sinotrans & CSC Qingshan Shipyard in China, and will be put into service on the Baltic Sea upon delivery in early 2018.
Deltamarin Ltd. (Deltamarin) is said to be working closely with the shipyard on the vessels' development, with the to bulkers utilising Deltamarin's B.Delta26LNG design.
Earlier this month, classification society Nippon Kaiji Kyokai (ClassNK) announced it has granted approval in principle (AIP) to a Maritime Innovation Japan Corporation (MIJAC) design for a 98,000 DWT LNG fueled bulk carrier.
In October, Deltamarin announced that it was working with Arista Shipping S.A. (Arista Shipping), American Bureau of Shipping (ABS), and Gaztransport & Technigaz (GTT) on a design for an liquified natural gas (LNG) propelled bulk carrier through an initiative known as Project Forward.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 644.50 | 2.50 | 765.00 | 14.00 |
| Rotterdam | 607.50 | 0.50 | 764.50 | 24.50 |
| Houston | 632.50 | 4.00 | 807.50 | 5.00 |
| Fujairah | 650.50 | 1.00 | 882.50 | 6.00 |
| Global 20 Ports Average | 665.50 | 6.50 | 870.50 | 14.50 |
| Global 4 Ports Average | 635.50 | 3.50 | 810.00 | 17.50 |
| Global Average Bunker Price | 725.00 | 2.50 | 925.50 | 8.00 |
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