Owners of scrubber-equipped ships will be happier with the profitability of the systems this year. Image Credit: Feen Marine
The rise in crude prices seen so far this year has delivered a 46% rise in the profitability of scrubbers since the end of 2020.
The average HSFO discount to VLSFO -- a key measure of how much money can be saved by using the emissions-cleaning systems -- stood at $116/mt on Thursday, according to Ship & Bunker's G20 Index of prices at 20 leading bunkering ports. That's up from $79.50/mt at the end of 2020 and $100.50/mt at the end of January.
Rising crude prices and pressure on middle distillates from the cold snap in the US are delivering greater profits for scrubber-equipped tonnage, after these ships suffered narrow spreads for much of 2020.
The spread may narrow somewhat next week as warmer weather cuts US heating oil demand and raises crude production there.