Norden has started to charter out scrubber-fitted tanker tonnage in a bid to reap the benefits from its earlier investment in the environmental equipment for IMO 2020.
According to brokers, the Danish owner sub-chartered the 50,000-dwt newbuilding Nord Vanquish to Stena Bulk for three years at $17,500 per day.
The product tanker, which complies with Tier II emissions standards, is to be delivered this month.
It is believed to be one of the MRs that Ehime-based Fukujin Kisen ordered from Hyundai Vinashin Shipyard in 2017 on the back of long-term charters to Norden.
Based on Braemar ACM’s estimates, the three-year rate for an eco MR tanker without scrubber technology was $16,500 per day last Friday.
Koch charter
In a separate deal reported by brokers, Norden chartered the 49,585-dwt Nord Swift (built 2015) to Koch Industries for one year at $19,750 per day. The ship will be delivered in the fourth quarter.
This exceeds Maritime Strategies International’s one-year rate forecast of $16,100 per day next year.
Under its company policy, Norden does not comment on its period charter activity, while Koch has yet to respond to a request for comment.
Norden is one of the many listed owners to have opted for scrubber technology to allow their vessels to continue using cheaper high-sulphur fuel oil beyond 1 January 2020 when the IMOs new emissions rules kick in.
In August 2018, the company announced it would invest $54m to fit scrubbers on 26 owned and long-term chartered vessels — $41m on its owned fleet and $13m in increased time-charter hire.
At that time, chief executive Jan Rindbo said he deemed scrubbers to be attractive because his company’s analysis showed the IMO 2020 rules would likely lead to a wider spread between high and low-sulphur fuels.
Norden has predicted positive cash flow of $40m from the investment over five years.
While spot earnings of product tankers have been subdued amid limited activity lately, a number of charterers have been fixing period deals for scrubber-fitted tonnage at healthy premiums.
According to brokers, Norwegian energy major Equinor earlier took the 115,000-dwt newbuildings BW Neso and BW Thalassa from Hafnia Tankers at $25,000 per day for three years.
The two ships are due for delivery from Daehan Shipbuilding in May and August, respectively, according to Clarksons.
Looming volatility
Looking forward, Baremar ACM said of the general period charter market: “As we head through the summer towards a period of expected volatility, charterers are keen to take cover especially with increased optionality in 2020.
“Owners' ideas are still optimistic compared to current spot rates so [it] may take some stronger numbers to help bridge the bid offer spread.”
