World News
Shipping Company TORM Sees Scrubber Installations Slow
Shipping company TORM's scrubber installation programme has slowed somewhat compared to plans released earlier this year, according to its latest earnings release.
In March the company had 30 vessels operating with scrubbers, and expected to install a further 17 by the end of the third quarter of 2020.
In an earnings release published this week, the company said it had 43 scrubber-equipped ships by the end of the third quarter. The firm now plans to install another six "during the remainder of 2020 and 2021," it said.
Shipping companies are now in much less of a hurry to install scrubbers, with the financial incentive having weakened significantly since the slump in crude prices earlier this year narrowed marine fuel price spreads.
The spread between high sulfur fuel oil and very low sulfur fuel oil at Rotterdam -- a key measure of the profitability of scrubbers -- was just $62/mt on Thursday, according to Ship & Bunker pricing, compared with a spread of $298/mt at the end of 2019.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 565.50 | 4.50 | 678.50 | 4.50 |
| Rotterdam | 512.00 | 3.50 | 676.00 | 9.00 |
| Houston | 552.00 | 3.00 | 682.00 | 4.00 |
| Fujairah | 555.50 | 7.50 | 753.00 | 1.50 |
| Global 20 Ports Average | 583.50 | 4.00 | 762.50 | 2.50 |
| Global 4 Ports Average | 546.50 | 4.50 | 697.50 | 2.50 |
| Global Average Bunker Price | 632.50 | 2.00 | 811.00 | 1.50 |
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