World News
IMO2020: NORDEN Makes $54 million Commitment to Scrubbers
With another Q2 report released today came another owner revealing it has invested in scrubbers; today it was the turn of D/S NORDEN who said it has placed orders worth $41 million for 26 exhaust gas cleaning systems plus an option for five more.
It puts the per-scrubber cost at just under $1.6 million, with two to be installed on newbuildings, 16 retrofitted on owned vessels, and eight installed on long-term chartered tonnage.
The order is part of an overall $54 million commitment to the technology, with the additional $13 million coming from increased TC hire over the coming years.
NORDEN says it also expects its investment to boost the value of its Dry Cargo vessels by 2% and Tankers by 1%.
"Recognising uncertainties, NORDEN considers the investment highly attractive with an estimated financial return of approximately 25% within 5 years on own vessels with significant upside," the owner wrote in its latest Q2 report.
NORDEN joints a raft of other companies who in recent weeks have made similar announcements as part of an apparent industry-wide change in attitude towards the technology.
What has not changed, however, is that when the new 0.50% global sulfur cap comes into force on January 1, 2020, the technology will still be absent from that vast majority of the global fleet.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 567.50 | 2.50 | 698.50 | 3.50 |
| Rotterdam | 532.00 | 3.00 | 673.50 | 7.00 |
| Houston | 573.50 | 7.50 | 718.50 | 2.00 |
| Fujairah | 562.00 | 1.00 | 756.00 | 1.50 |
| Global 20 Ports Average | 587.00 | 0.50 | 768.50 | 7.50 |
| Global 4 Ports Average | 558.50 | 2.00 | 711.50 | 1.50 |
| Global Average Bunker Price | 624.50 | 4.50 | 813.00 | 2.00 |
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