World News
MSC Secures $439m Financing for Scrubber Retrofits on 86 Box Ships
Box ship giant MSC Mediterranean Shipping Company SA (MSC) has secured $439 million in financing for scrubber retrofits on 86 vessels.
The deal came to light Friday when Watson Farley & Williams LLP (WFW) said it had advised BNP Paribas as co-ordinating bank and agent for the agreement, that also involved four other banks and it backed by China’s state run China Export & Credit Insurance Corporation (Sinosure).
WFW Finance Partner, Alexia Russell called it a “milestone deal, which marks the first scrubber financing between the parties.”
MSC is the second biggest box carrier by capacity with 14.5% of the market, according to Alphaliner.
Its scrubber-focused IMO 2020 compliance strategy comes in contrast to that of Maersk Line, the world’s biggest box shipper, who is taking an almost entirely fuel-based approach to the new global sulfur cap.
Still, MSC believes its bunker bill will rise by $2 billion because of the new rules.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 571.50 | 0.00 | 665.50 | 1.00 |
| Rotterdam | 512.00 | 3.00 | 663.00 | 0.50 |
| Houston | 545.50 | 3.00 | 666.00 | 9.50 |
| Fujairah | 560.50 | 0.00 | 743.50 | 1.50 |
| Global 20 Ports Average | 584.00 | 1.00 | 751.50 | 2.00 |
| Global 4 Ports Average | 547.50 | 0.00 | 684.50 | 2.50 |
| Global Average Bunker Price | 633.50 | 0.50 | 805.50 | 0.00 |
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