World News
IMO 2020: Scrubber Order Slots for 2020 Completion "Almost Full"
After a recent surge in orders for Exhaust Gas Cleaning systems (EGCS), indications are that the order slots for January 2020 completion are now almost full, according to Lloyd's Register (LR).
EGCS, more commonly known as scrubbers, will allow vessels to continue burning the same HSFO bunkers they do today after a global 0.50% sulfur cap on marine fuel comes into force from January 1, 2020.
"With the potentially greater price differential between high sulphur fuel oil (HSFO) and 0.50% VLSFO by 2020 and short pay-back, ship owners & operators have shown increased interest in installing scrubbers on their vessels," says LR, who predicts there will be about 1000-1500 ships installed with scrubbers by 2020.
But that number is a lot less than expected, with the IMO's original fuel availability study predicting there would be around 3,800 ships featuring the systems.
Tanker owner Frontline, who this week placed an order for 36 scrubbers along with a 20% stake in the manufacturer, Feen Marine Scrubbers Inc, predicted that placing orders for the tech will become difficult as the IMO2020 deadline approaches.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 649.50 | 2.00 | 778.50 | 8.50 |
| Rotterdam | 602.00 | 0.50 | 748.00 | 6.00 |
| Houston | 624.00 | 5.00 | 792.00 | 3.50 |
| Fujairah | 649.50 | 2.00 | 898.00 | 3.00 |
| Global 20 Ports Average | 662.00 | 2.00 | 855.00 | 1.50 |
| Global 4 Ports Average | 631.00 | 1.00 | 804.00 | 0.50 |
| Global Average Bunker Price | 717.50 | 0.50 | 913.50 | 1.00 |
Popular Now More
-
Apr 24Non-compete clauses have not always been used in a fair and reasonable way in the bunker industry, Maritime Recruitment Company Ltd's Vernon Jayanathan tells Ship & Bunker. -
Apr 25The new hire was previously a marine fuel trader for Vilma Oil in Madrid from June 2017 to last month. -
Apr 24The arrests were both on Monday.