IMO 2020: Hong Kong Owner Snubs Scrubbers

by Ship & Bunker News Team
Thursday August 30, 2018

Hong Kong-based shipowner Jinhui Shipping and Transportation has become the latest player to snub scrubbers as part of its IMO 2020 compliance strategy - at least for now.

The bulker operator believes that “the long term technical and commercial viability of scrubbers is yet to be proven.”

The firm also believes there is a financial benefit to holding off on any investment in the tech as “the cost of scrubbers has been on the decline.”

While the thinking is in-line with many of those opting for a "wait-and-see" approach for the new sulfur cap, Nick Confuorto, President and COO of scrubber manufacturer CR Ocean Engineering (CROE), told Ship & Bunker last year that the price of the systems "will only be going up due to higher material pricing and the higher demand."

Earlier this month, Drewry also projected that a quickly tightening HSFO / VLSFO spread that will fall to just $87/mt in 2023 would favour those making an earlier investment in the technology.

Still, despite this summer’s explosion of interest in scrubbers, Jinhui this week joins Odfjell SE along with the industry majority in opting for a fuel-based approach to compliance with the upcoming global 0.50% sulfur cap on marine fuel that comes into force from January 1, 2020.

“From the environmental perspective, we believe the use of low sulphur fuel is the most efficient way to tackle this issue. We expect the availability of such product will become abundant at reasonable costs with time, given the likelihood of an increasing demand,” the company said it in its latest H1 results report.

Jinhui Shipping and Transportation owns 18 Supramax and two Post-Panamax vessels.