Ship owners delay or postpone scrubber retrofits to minimise COVID-19 financial impact
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Ship owners are postponing or cancelling the installation of scrubbers as the lockdown of economies due to the COVID-19 pandemic reduces financial cash flow, reports Reuters.
The global oil price crash has also intensely narrowed the differential between low sulphur and high sulphur bunker fuel from USD 300 in January to as low as USD 40 a tonne to date.
This would significantly increase the pay back time on the investment made by companies to retrofit scrubbers on their ships.
Norwegian shipping firm Wallenius Wilhemsen have reportedly cancelled scrubbers for nine ships and postponed an additional eight until later this year or 2021.
A similar pattern has emerged across several other companies including Scorpio Tankers and Frontline.
Frontline said it estimates a positive cash impact of approximately USD 7.6 million in 2020 resulting from these deferrals
Related: Frontline delays scrubber installations; reports highest Q1 profits since 2008
Related: Scorpio Bulkers postpones thirteen scrubber orders until at least 2021
Photo credit: Manifold Times
Published: 15 June, 2020
