Dry bulk shipping company Pacific Basin Shipping released its financial report for 2017. In the report, Pacific Basin’s CEO, Mats Berglund, informed that the company will not use scrubbers, as it thinks that the adoption of cleaner fuels will be more environmentally beneficial.
We welcome stricter environmental regulation, but we do not think sulphur scrubbers are an effective solution technically or environmentally, and we much prefer a mandate for everyone to burn cleaner fuel and the level playing field this would create.
A potential consequence of a low sulphur fuel adoption is that its higher cost will prevent ship operating speeds from increasing, resulting in lower emissions and a better supply-demand balance.
Pacific Basin also believes that the new environmental regulations will benefit the supply-demand balance and larger, stronger companies which have high quality fleets that can adapt and cope with compliance.
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Mats Berglund, added:
There remains extra capacity in the existing global fleet through potentially higher operating speed, and the market does not need more newbuildings. What we shipowners need is a more reasonable level of profitability.
You can see the full report in the PDF herebelow
