World News
Tanker CEO: Optimise Current Ships Before Building New Ones
Andreas Sohmen-Pao, CEO of tanker operator BW Maritime, called for shipowners to be cautious about ordering new eco-ships and argued for first making improvements to existing ships, Singapore's Business Times reports.
"Some think that ordering the current generation of eco-ships is the way to go, but I would propose optimising our existing ships first, then wait for the next big stride in technology, rather than adding a lot more ships that the world does not need and which may look outdated in five years' time," he said.
Speaking at the Singapore Maritime Institute conference, Sohmen-Pao said government intervention contributes to excess capacity in the industry with policies designed to create work and support local economies.
"Excess capacity obviously creates waste in material terms," he said.
"It also takes pricing down to a level where it bears no relation to the economic cost of providing that service, let alone the environmental cost."
Sohmen-Pao said current eco ships have not made major improvements over previous models.
Many in the shipping industry cite the oversupply of vessels as a major issue, and some say new orders for eco vessels are contributing to the problem.
At the same time, some ship owners, such as Dampskibsselskabet NORDEN A/S, argue that customers are demanding eco vessels to combat high fuel prices.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 621.00 | 7.00 | 730.50 | 6.00 |
| Rotterdam | 566.50 | 2.50 | 734.00 | 3.50 |
| Houston | 589.50 | 1.50 | 762.50 | 8.00 |
| Fujairah | 621.00 | 5.50 | 871.50 | 15.00 |
| Global 20 Ports Average | 639.00 | 5.00 | 821.50 | 4.00 |
| Global 4 Ports Average | 599.50 | 4.00 | 774.50 | 6.50 |
| Global Average Bunker Price | 696.50 | 3.50 | 880.50 | 3.00 |
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