MPC Container Ships exercised options to equip five more vessels with scrubbers, while charters for six scrubber-retrofitted vessels have also been agreed. The charterparties will start after scrubber retrofitting and with a duration into 2022.
On 14 November 2018, MPC Container Ships signed agreements for the purchase of five scrubbers. They will be retrofitted on five vessels within the company’s fleet before 1 January 2020, which is the implementation date of the new sulphur emission cap regulation.
Following this announcement, MPC Container Ships will equip additional five vessels with exhaust gas cleaning systems (“scrubbers”) and that charters for six scrubber-retrofitted vessels have been agreed. The charter parties will be initiated after scrubber retrofitting and with a duration into 2022. The scrubber investments are expected to be financed with cash on hand and available debt capacity on the company’s existing fleet.
[smlsubform prepend=”GET THE SAFETY4SEA IN YOUR INBOX!” showname=false emailtxt=”” emailholder=”Enter your email address” showsubmit=true submittxt=”Submit” jsthanks=false thankyou=”Thank you for subscribing to our mailing list”]
MPC seeks to take advantage of the optionality of its scrubber programme by analysing further retrofits on a vessel by vessel basis. In this context, the company is already in dialogue with various liner companies on further scrubber-linked employment concepts.
CEO Constantin Baack pointed out that the transaction adds charter coverage at attractive rates and provides significant upside potential post 1 January 2020. He, also, noticed that the transaction demonstrates an increasing interest from liner companies for scrubber-linked charters.
