Sanko Line has turned to Japan’s Tsuneishi Shipbuilding for its first newbuilding order in seven years.
The Tokyo-based shipowner has commissioned an 82,000-dwt bulker for delivery in the fourth quarter of 2020.
Sanko disclosed the order for the scrubber-fitted vessel in a single-line statement on its website last week but did not reveal the shipyard, the price or its motivation in placing the contract.
“There are not many shipping companies that have opted to have a scrubber fixed on ships of this size,” a Sanko executive told TradeWinds.
“There will be an advantage [in fitting the scrubber] when the environmental regulations come into force.
“We expect the price difference between high-sulphur fuel and low-sulphur fuel to continue for some time.
“There is also concern on the supply of low-sulphur fuel.
“Having a scrubber fitted to the ship, it will be less impacted by the chaotic situation at the end of the year.”
A company official said the incoming IMO 2020 regulation is one of the reasons behind the deal.
“At a certain point of time, our company needs to renew our fleet,” the official said. “Our current financial status is reasonably healthy due to a relatively good market in the last year and part of 2017. Our shareholder is supportive of the order.”
Sanko was once a major shipping company, controlling around 200 vessels. It went into insolvency in 2012 but emerged from the bankruptcy filing in 2014.
Today, the company is controlled by Elliott Management Corp of the US and is left with three bulkers — one capesize, which is for sale, and two panamaxes.
It has lined up one of its panamaxes for scrubber retrofitting in the summer. “We are still considering for the other two ships,” the executive said.
“Sanko is now a normal company. Our focus is on the dry bulk sector. We are rebuilding relationships with bulker clients.”
