World News
IMO 2020: Pacific Basin Dismisses Scrubbers as not Technically or Environmentally Effective
Dry Bulk player Pacifc Basin is the latest shipowner to dismiss scrubbers as a compliance solution for the upcoming 0.50% global sulfur cap set to come into force from January 1, 2020.
"We welcome stricter environmental regulation, but we do not think sulphur scrubbers are an effective solution technically or environmentally, and we much prefer a mandate for everyone to burn cleaner fuel and the level playing field this would create," Chief Executive Officer, Mats Berglund, wrote in the company's latest earnings report.
With the dry bulk sector barely two years into its recovery from historic lows, Berglund said fuel-based compliance solutions will also help keep the supply-demand balance in check.
"A further consequence of a global adoption of low sulphur fuel is that its higher cost will prevent ship operating speeds from increasing, contributing to lower emissions and a better supply-demand balance," he said.
Berglund said uncertainly over IMO 2020 also means it is too risky to be contemplating new-building orders at this time.
Exhaust gas cleaning systems, more commonly known as scrubbers, allow vessels to burn otherwise noncompliant fuel by achieving an equivalent method of compliance.
While many of the industry's talking heads have concluded they have a solid business case on paper, Pacific Basin are among the many shipowners yet to be convinced this translates into scrubbers being practical in the real world.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 539.00 | 4.00 | 664.50 | 6.00 |
| Rotterdam | 501.00 | 0.50 | 641.50 | 2.50 |
| Houston | 543.50 | 3.50 | 662.50 | 1.50 |
| Fujairah | 535.50 | 3.50 | 744.50 | 1.50 |
| Global 20 Ports Average | 571.00 | 1.00 | 746.50 | 0.00 |
| Global 4 Ports Average | 529.50 | 2.50 | 678.00 | 2.50 |
| Global Average Bunker Price | 621.50 | 1.00 | 801.50 | 1.00 |
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