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      New Orders from International Shipowner

      Release time:2018-06-24 12:03

      Shortly after signing purchase agreement of retrofitting EGCS on bulk carriers with a Hong Kong shipowner, Puyi has recently received new orders from a Thai shipowner, which not only marks the increasing recognition Puyi gained from customers, but also shows that more and more shipowners are inclined to resort to EGCS for conformity to IMO regulations.

      At the 2018 Poseidon International Maritime Exhibition, Jize Lin, Secretary General of IMO, reiterated that the global sulfur cap will be enforced from 1 January 2020, and will not be postponed again, which means in another one and a half years, vessels around the world will be banned from using fuels with sulfur content over 0.5%, unless they are installed with EGCS as alternative.

      As international crude oil price continues to rise, price spread between HSFO and 0.50% VLSFO has increased significantly, with currently HSFO at the price of USD 420 per ton, while 0.50% VLSFO USD 630 per ton. According to Junichiro Ikeda, CEO of the Japanese shipping magnate Mitsui, the future regulation will further increase fuel costs for shipping companies by $300 per ton. As a result, many shipowners’ attitudes towards EGCS have shifted from hesitation to acceptance.

      Although there are multiple options for conformity, EGCS remains the most cost-effective one for shipowners. However, the “Matthew Effect” has been growing more and more apparent, with most orders pouring into a limited number of suppliers, causing increase in price and delay in delivery.

      Weihai Puyi Marine Environmental Technology Co., Ltd., in cooperation with Dalian Maritime University, has developed multiple systems including open-loop, closed-loop and hybrid system, with a variety of treatment methods including magnesium-based, sodium-based and seawater method over the past decade. In Puyi’s own land-based laboratory, shipowners can closely observe operation process and treatment effect, and thus develop a better understanding of the equipment. Weihai Puyi will continuously work together with customers to pursue optimized solutions in response to the upcoming regulation.

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