Scrubber has a strong presence... “the issue of LSFO(low sulphur fuel oil) quality is not even solved.”

Scrubber has been installed on 47% of bulk carrier which delivered in this year. 

From 2020, the regulation of SOx emissions from ship exhausts has been enforced. Scrubber, one of the main solutions to solve the regulation has a strong presence.

The official relevant business points out the issue of LSFO quality has not been solved yet.

According to recent data issued by BIMCO, approximately 47% of all newly built dry bulkers delivered during 2020, are installed with exhaust gas cleaning systems, known as scrubbers . 

Most scrubber-fitted bulkers were delivered in the Panamax sub-sector, that saw 81 units out of 150.

Panasia’s scrubber installed on HMM’s 24,000-TEU Container ship. Source/Panasia 

It’s a global trend to install scrubber systems. According to the Clarkson Research in July, the installation rate of 2,731 new ships with over 2,000dwt is 19%. At the same time,

 the rate of installation of scrubber at existing ships is 6.9%. This figure is higher than the 4% forecast of 2020 scrubber installation by Goldman Sachs, an investment bank, and 18% by 2025.

Installation of a scrubber requires initial investment, but it can increase ship chartering costs. BIMCO commented cape sized bulk carrier with scrubber causes 27% more higher

income of daily ship chartering costs than not installed scrubber ships.

The most biggest benefit of installation of scrubber is to use IFO 380 continuously. As of 8^th, December, price of VLSFO is $384.5 per ton, and it’s 24% higher than IFO380, which is $310.5.

The spread is diminished than the beginning of the year, but shipping companies prefer to use low-priced fuel oil.

Although concerns about the quality of low-sulfur oil have not been resolved, it seems to have contributed to the increase in the scrubber installation rate. There is no international standard of LSFO quality.

Production method and quality are different by each manufacturer, there might be a possibility of ship companies have not confidence with the quality.

The official relevant business had spoken “some ship owners think there is a risk of sailing when using LSFO” and “If they install a scrubber, 

it is advantageous with stability because its oil fuel has not to change.”