Attractive time to secure 2020 ready tonnage. Image Credit: Torm
Torm says now is a good time to secure bunker saving vessels ahead of 2020 when the global sulfur cap on marine fuel falls to 0.50%.
With the majority of vessels expected to switch to distillate bunkers to comply with the new cap, operators are expected to see a considerable increase in their bunker bills once the new rule comes into effect.
Ship & Bunker data indicates at major ports the premium for MGO over IFO380 is currently around 70%, but some expect this spread could widen considerably come 2020.
Torm's comments came alongside news that the tanker operator today exercised options for the construction of three MR newbuildings at Chinese yard Guangzhou Shipyard International (GSI).
"The vessels are attractively priced when comparing to the current market, and we believe that now is an attractive time to secure new fuel-efficient tonnage that is compliant with the ballast water convention and ready for the IMO 2020 sulfur requirements," said Executive Director Jacob Meldgaard.
Delivery of the vessels is expected in 2019 through first quarter of 2020 with the deal valued at $93 million.