Capital opts for scrubbers on its larger ships, charges HMM $4,900 a day premium for 5,000 teu quintet

Capital opts for scrubbers on its larger ships, charges HMM $4,900 a day premium for 5,000 teu quintet

Evangelos Marinakis’s Capital Product Partners become the latest big name in shipping to hedge their bets and invest in scrubbers ahead of the global sulphur cap, which is now just 425 days away.

Capital said at a quarterly results briefing yesterday it would install scrubbers on 14 of its larger ships, namely 10 boxships, three crude tankers and a bulk carrier. For five of the boxships – all 5,000 teu in size and on charter to South Korea’s HMM, Capital has managed to increase its daily charter rates by $4,900 per day to account for the scrubber installation taking the charter fee to a very healthy $34,250 per day.

Jerry Kalogiratos, Capital’s CEO, commented on the decision to equip much of its fleet with scrubbers, saying: “We believe that this move can help increase the appeal of the partnership’s larger vessels to period charterers post January 2020, but also potentially allow us to capture meaningful premiums, such as that negotiated with one of our charterers for five of our vessels.”

Capital also revealed yesterday it has sold a 2001-built tanker called Amore Mio II to unidentified interests for $11.2m.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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