World News
Two More VLCC Scrubber Retrofits for Shipping Firm Frontline
Shipping company Frontline is planning to add exhaust gas cleaning systems to two more of its VLCCs on strong earnings from scrubber-equipped tonnage.
The firm plans to retrofit one vessel with a scrubber before the end of this year and another in the first quarter of 2023, it said in an investor presentation this week.
After those installations, 65% of the company's fleet will be equipped with scrubbers.
The firm currently sees a $24,200/day earnings premium for scrubber-equipped eco VLCCs versus non-eco vessels, a $13,500/day premium for Suezmaxes and a $12,300/day premium, for LR2 tankers, it said.
The earnings potential for scrubber-equipped ships has risen in line with a widening VLSFO-HSFO premium this year, which represents the fuel-bill saving that can be achieved by these vessels burning the cheaper fuel.
Ship & Bunker's G20-VLSFO Index of prices across 20 leading bunkering ports has been at an average premium to the G20-HSFO Index of $241/mt this year, compared with an average premium of $112/mt in 2021.
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 |
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