EMEA News
Box Ship Owner Looks to Capitalise on "Significant Interest" in Scrubber-Equipped Vessels
MPC Container Ships ASA (MPC) it looking to capitalize on IMO 2020 by going big on scrubbers, in a move that follows what it described as "significant interest from charterers" for vessels fitted with the technology.
The Norwegian feeder vessel owner has placed a firm order to fit scrubbers on five vessels with an option for up to 50 additional vessels.
"[MCL] is in well-advanced negotiations with charterers for mid- to longer-term charter parties at favourable rates that are expected to yield attractive returns for the Company," the firm said in a statement today.
"Simultaneously, the Company is evaluating additional charters and seeks to take advantage of the high optionality of its scrubber agreements."
With 68 vessels in its fleet, MCL says it is also "carefully evaluating further scrubber installations, on a vessel by vessel basis."
The firm five units will be fitted prior to the January 1, 2020 start date of the new 0.50% sulfur cap; the option for further installations are for 2019 and early 2020.
The cost of the units - that typically run from $2-$5 million - was not revealed but expected to be financed with cash on hand and available debt capacity on its existing fleet.
"Having conducted thorough analyses on the subject, we are excited about the opportunity to retrofit selected vessels with scrubbers as an economically attractive alternative of complying with the 2020 sulphur regulations," said CEO Constantin Baack.
"Moreover, the option to equip a larger portion of our fleet with scrubbers gives MPC Container Ships the strategic flexibility to adapt to new market environments as we deem fit."
While orders for scrubbers have rocketed in recent months, interest from box ship owners - at currently representing just 13% of installs or confirmed orders - has been notably low, particularly given that the uncertainly over post-2020 HSFO supply mans the units are seen as better suited for non-tramp traders.
