LNG Will Clash Costs for Box Ship Operators as ECAs Spread and Oil Price Rises Again

By Gavin van Marle, The Loadstar

LNG-fuelled containerships might provide operators appreciable value financial savings when the value of conventional gasoline rises once more, in response to one main German shipowner.

Speaking finally week’s JOC Container Trade Europe occasion in Hamburg, Keno Eden, challenge supervisor at shipowner Nordic Hamburg, which has six LNG-fuelled feeder ships on order with a Chinese shipyard, claimed an operator might get pleasure from a diminished gasoline invoice of $55,000 on a 12.5-day North European feeder loop inside the area’s Sulphur Emissions Control Areas (SECAs).

The six 1,400 teu vessels on order by Nordic Hamburg have been positioned on long-term constitution with Finland’s Containerships Group and are anticipated to be deployed on a loop that runs from the Baltic ports of St Petersburg and Riga all the way down to Rotterdam and as much as the UK’s Teesport.

The present common gasoline worth of heavy gasoline oil (sulphur oxide-heavy transport gasoline that has been banned within the Channel, North and Baltic seas because the starting of this 12 months) is $230 per tonne. This compares with $440 per tonne for SECA-compliant marine gasoline oil (MGO). But the value of LNG is presently $250 per tonne.

“Compared with vessels burning MGO, the new LNG vessels will offer cost savings of $55,000 per trip,” Mr Eden stated.

“The development of SECAs in Europe is a real game-changer because it leads to a significant cost increases, but it’s also an opportunity in the push for LNG fuel. The technology is ready; emissions are down; it means reduced costs in ports; and there are no residual costs such as waste disposal of water used in scrubber systems,” he added.

In addition, the design of the vessels will imply they’re higher suited at combining feeder and shortsea cargo flows, as they’ll boast the very best variety of 45ft container slots (639) and, in response to vesselsvalue.com, some 329 reefer slots.

The first vessel is predicted to start sea trials subsequent 12 months and enter service within the first quarter of 2017, with the remaining 5 as a consequence of observe over the rest of that 12 months, stated Mr Eden, including that the proprietor was speaking to different container operators and the market “is becoming more receptive”.

However, he added, in distinction to a lot of the present container market – which operates on six-month to one-year constitution phrases – the brand new vessels should be mounted for for much longer.

“The capital value of the LNG vessels is about 25% increased than for a standard vessel, in order a shipowner we’d like a long-term constitution. Many gained’t do it for greater than 12 months, however having the long-term constitution made the financing potential.

“With box ships that operate on fixed rotations, the demand will pick up quicker than with bulkers chartered on tramp voyages,” he added.

One potential impediment to be overcome earlier than the primary ship is deployed is the present lack of LNG bunkering amenities within the area – though Shell’s determination to put in a facility in Rotterdam will imply the primary Containership vessels have one refuelling station on their supposed deployment.

“A challenge is the infrastructure. We need more LNG bunkering facilities in the region,” he stated. “Initially, it won’t be a problem because of the specific port rotation, but most ports also have no LNG bunkering regulations and procedures, so we will also need more political support.”

The Loadstar is quick changing into recognized on the highest ranges of logistics and provide chain administration as the most effective sources of influential evaluation and commentary.

Check them out at TheLoadstar.co.uk, or discover them on Facebook and Twitter.