World News
40% of VLCCs Could Have Scrubbers by the End of 2020
As much as 40% of VLCCs could have scrubbers fitted by the end of 2020, according to shipping brokerage Gibsons.
"Scrubber uptake is the highest in the VLCC fleet, followed by Suezmaxes," Gibsons said in a note to clients last week.
"Scrubber penetration is considerably lower for smaller size groups."
31% of VLCCs currently have scrubbers, according to Gibsons's estimates. Another 7% is due for scrubber retrofits, and 32% of the current orderbook will come with the systems installed, taking the share of the VLCC fleet with the emissions-cleaning technology to close to 40% by the end of 2020.
"The actual penetration of scrubbers in the spot market is expected to be even higher when excluded tonnage (NITC, sanctioned/storage vessels) are accounted for, while the anticipated demolition over the course of this year will also reduce the absolute number of non-scrubber tankers," Gibsons said.
Scrubber installations slowed significantly last year as the crude price collapse left the systems looking less profitable.
The price spread between VLSFO and HSFO at Rotterdam -- a key measure of the savings to be made using scrubbers -- narrowed from $298/mt at the end of 2019 to as little as $26.50/mt in April 2020, according to Ship & Bunker pricing. But the spread has widened since, and stood at $83/mt on Friday.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 647.00 | 6.00 | 762.00 | 5.50 |
| Rotterdam | 599.00 | 1.00 | 751.00 | 0.50 |
| Houston | 618.00 | 11.50 | 802.50 | 6.50 |
| Fujairah | 642.00 | 5.50 | 883.50 | 5.50 |
| Global 20 Ports Average | 661.50 | 3.50 | 859.00 | 5.00 |
| Global 4 Ports Average | 629.50 | 1.00 | 799.50 | 1.50 |
| Global Average Bunker Price | 719.00 | 3.50 | 915.00 | 7.50 |
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