World News
Star Bulk Scrubbers Pay Off Cost in Two and a Half Years
Dry bulk shipping firm Star Bulk has generated enough savings from installing scrubbers on its fleet to pay off their cost in two and a half years.
The firm had earned back the $250 million cost of its scrubber installation programme by the end of June, it said in an earnings release last week. The cost includes both the capital expenditure and the off-hire cost while the equipment was being installed.
"With our fleet being about 94% scrubber fitted and the current Hi5 spread at very healthy levels, these scrubbers should augment our profitability for the foreseeable future," Petros Pappas, CEO of Star Bulk, said in the statement.
The spread between VLSFO and HSFO prices, sometimes known as the Hi-5, is a measure of the fuel-bill savings a vessel can earn by having a scrubber installed and using cheaper fuel. The global average spread stood at $251/mt on Friday, according to Ship & Bunker's G20 Index of prices at 20 leading bunkering ports, up from $105.50/mt a year earlier.
The spread hit a record high of $420.50/mt on July 5 and has declined sharply since then.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 567.50 | 3.50 | 700.00 | 14.50 |
| Rotterdam | 512.50 | 4.00 | 695.00 | 17.50 |
| Houston | 556.00 | 6.00 | 679.00 | 1.00 |
| Fujairah | 562.50 | 2.50 | 755.00 | 0.00 |
| Global 20 Ports Average | 589.00 | 3.00 | 764.50 | 3.50 |
| Global 4 Ports Average | 552.00 | 3.00 | 699.00 | 2.50 |
| Global Average Bunker Price | 635.50 | 1.00 | 811.50 | 11.00 |
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