Newbuilding merchant ship market is now led by environmental regulation and tonnage oversupply and it will be controlled by fuel-efficient Eco-Ship afterwards.
Analyst Park Mu-Hyun of E*Trade Securities in Korea said, Tier III standards will become applicable for ships with keel laying after January 1st 2016 and they are expected to require dedicated NOx emission control technologies such as exhaust gas recirculation, or selective catalytic reduction, etc.
Also, the SOx regulation which requires sulphur content in bunker C oil to be cut below 0.1% will be applied to those vessels sailing in ECAs after January 1st 2015.
Park said buying newbuildings equipped with low-rpm ultra-long stroke engine and emission reduction devices is far economically effective than retrofitting existing engines.
Therefore, newbuilding demand for eco ships will grow eventually and as Eco ships are complicated to build he expected "Commercial ship market will recover in line with increasing orders placed at Korean shipbuilders."
Published : December 12, 2012
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