Drewry: Liner Shipping Industry’s Demand for Washing Tower is Increasing
CATEGORY:Industry
FROM:World Maritime News, edited by E-PORTS
08 / Dec / 2021
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Drewry said that washing tower, as a solution to the 2020 Sulfur Limit Order, was not widely favored at first, but is now attracting more and more attention from the industry.
It is only one year left before the sulfur limit order is officially implemented, and more and more container ship owners choose to install washing towers.
According to statistics, 266 container ships have installed washing towers till now, with a total capacity of 2.2 million TEU, accounting for 2.5% of the total capacity. The number of ships equipped with washing towers accounts for only 5% of the total.
Drewry pointed out that “Washing tower accounts for a large proportion of new ship orders, and the overall installation ratio will continue to rise with the increase in the number of refits.”
According to Drewry, after installing washing towers, fuel costs will decrease and charter prices will increase. However, factors such as refit costs, continuous service costs, uncertainty of future environmental regulations and availability of high sulfur fuel oil (HSFO) will weaken the potential competitive advantage of the washing tower strategy.
Drewry holds that no matter what reason for the increase in the number of washing towers installed, if this trend continues, “it may bring additional advantages to ocean-going cargo ships due to supply contraction in 2019”.
On the whole, after a relatively sluggish year of 2018, the new sulfur limit order will bring new momentum to the development of the market, and more obsolete and highly polluted ships will be eliminated. However, from another perspective, the number of ships in some routes will be temporarily reduced due to the need to carry out refitting works.
The time required for refitting ships of different sizes and types is also different. The longest time is 6 weeks, which is enough to affect the number of shipping spaces. At present, only a few ships on the East-West route choose to install washing towers.
According to Drewry, the next year will witness higher freight rates as a few of container ships may be out of service and refitted.
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