Public tanker companies have taken the poor tanker market as the time to minimise the loss of hire and undertake ballast water treatment system retrofits
In its Q2 2021 results, DHT reported that scheduled off hire for the quarter was 100 days as the company has taken advantage of the weak freight market to bring forward drydockings and planned installations of scrubbers and ballast water treatment systems.
Another tanker operator with retrofits due in 2021 is Frontline, which has remaining commitments for the installation of ballast water treatment systems on three vessels, with a remaining commitment of US$100,000 excluding installation costs, due in 2021.
International Seaways, which absorbed fellow-US tanker company Diamond S Shipping, reported it had purchased five ballast water treatment systems for installation on tankers in 2021. Q2 2021 results of International Seaways also contain a note that the company is committed to upgrading 16 vessels that came into the fleet from the merger, with ballast water treatment systems and other “vessel betterment commitments”.
The value of the International Seaways commitments are US$18M in 2021, US$77M in 2022 and US$182M in 2023. The aggregate sum of US$277M is nearly one-third of the company’s long-term contractual obligations.
Navios Maritime Acquisition Corp had relatively small sums still committed to vessel betterment. This amounted to US$2.7M in Q1 2021 for ballast water treatment systems and scrubbers, compared with US$4.7M in the same quarter of 2020.
Scorpio Tankers does not have any vessels scheduled to receive ballast water treatment systems during drydockings in 2021, but five MR product tankers are scheduled for ballast water treatment retrofits in 2022.
Ardmore Shipping noted in its latest results that the installation of ballast water treatment systems would be timed with the drydocking schedule. This means there are no ballast water treatment systems retrofit expected in 2022, but nine in 2023 and three in 2024. There was one ballast water treatment retrofit scheduled in 2021.
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