Copenhagen listed dry cargo and tanker shipping firm Dampskibsselskabet NORDEN A/S has entered into a USD $54 million, 26-scrubber order during the second quarter (Q2) of 2018, it says.
“Throughout the last 18 months, NORDEN has evaluated how the sulphur cap will affect both the shipping and bunker markets,” it says.
“The cost difference between low sulphur and high sulphur fuel oil is expected to increase significantly for a sustained period, making scrubbers an attractive choice for compliance.
“Therefore, NORDEN has during 2018 secured installation of 26 scrubbers with options for five more.”
According to NORDEN, two scrubbers will be installed on newbuildings, 16 retrofitted on selected, owned vessels, and the remaining eight will be installed on long-term chartered tonnage; it did not specify which vessel types will be upgraded with scrubbers.
The costs, broken down, are estimated to amount to approximately USD $41 million on owned vessels and approximately USD $13 million in increased time charter hire over the coming years.
“Recognising uncertainties, NORDEN considers the investment highly attractive with an estimated financial return of approximately 25% within 5 years on own vessels with significant upside,” it explains.
NORDEN operates a mix of owned and chartered tonnage including 71 tankers and 63 dry bulk vessels, according to latest Q2 2018 figures.
Photo credit: Dampskibsselskabet NORDEN A/S
Published: 16 August, 2018
Ban lessens the chances of investments being undercut by less scrupulous operators looking to burn non-compliant fuels.
The company is considering refinery upgrades on the coming 2020 sulphur cap for marine fuel.
Fuel stability, incompatibility, lower flashpoints, cat fines and extended ignition delays, highlighted.
Compliance with the new fuel regulations has been quite strong, looking at Singapore ports, around 96% of ships entering the port in Q1 were using a compliant fuel.
European Commission and REMPEC also studying the impact of ECAs in the Mediterranean Sea.
‘We support MFMs for bunker deliveries at Singapore and that goes for other tech as well; Hafnia is onboard any initiatives improving transparency in the bunker supply chain,’ says Bunker Manager.
Additional topics of bunker contamination and OCM services discussed at VPS’ Fuel Management Challenges – The Year of 2021 & Beyond webinar on 23 September; Manifold Times summarises the session.
‘The JMs have failed to discharge their duties by blindly helping the Banks mount a false case against the Defendant,’ wrote defence lawyers representing former IPP Director Dr Goh Jian Hian in court statement.
Lead prosecutor Andreas Myllerup Laursen aims for a fine and a prison sentence in the so-called Syria case scheduled to commence in Odense, Denmark on 26 October, writes the Danish publication.
In a modern re-telling of the story of David versus Goliath, local bunker barge owners/charterers successfully resisted claims brought in the Singapore courts by Phillips 66 for misdelivery of bunkers.
Bunker barge owners and operators; traders and suppliers; banks, including players in other countries, will have to re-examine respective operations, advises Helmsman Associate Director Jonathan Tan.
Vopak BL was a non-essential document with no contractual force and had no effect as a contract of carriage or as a document of title, states written Judgement issued by Singapore Court of Appeal.
