Koch fixes new China Merchants VLCC with scrubber add-on clause

Koch fixes new China Merchants VLCC with scrubber add-on clause

Tanker chartering deals with scrubber bolt-ons are beginning to creep into the market as big names in the market hedge their bets ahead of the 2020 global sulphur cap.

Brokers Intermodal report tanker chartering giant Koch has fixed the brand new 310,000 dwt New Champion from China Merchants Energy Shipping for two years at $29,750 per day. The contract comes with an option to upgrade the ship with a scrubber and increase the daily rate up to $35,000 per day.

“As the 2020 deadline approaches it becomes clearer that vessels with scrubbers will definitely benefit with substantial premiums, while the extend of the period during which these premiums will apply remains key to the competitive advantage the scrubber investment can offer,” Intermodal stated in its most recent weekly report.

Charterers of VLCCs will have to pay 33% more for ships without scrubbers once the global sulphur cap kicks in on January 1, 2020, according to recently published analysis from tanker brokers Poten & Partners.

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.

Related Posts