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Analyst: Eco ships will force down ship values

The opposition towards eco ships which exists among shipwners is primarily caused by a wish to protect the values of their own existing fleets, E*Trade Securities analyst Park Mu-Hyun says according to the Asian shipbuilding media Asiasis.

A lot of shipowners persistently argue against the advantages of the new fuel efficient eco ships but the opposition is primarily based on a wish to protect the values of their existing ships.  These values will continue to go down as the delivery of eco designs continues, E*Trade Securities analyst Park Mu-Hyun tells the Asian shipbuilding media Asiasis.

“Once shipowners approve Eco-ship capacity, values of existing secondhand vessels will plummet” says Park Mu-Hyun adding that a lot of shipowners are already in the process of selling existing and less fuel efficient ships. In particular, he highlights Scorpio Tankers as the most obvious example of a shipping company which was fast to get rid of older ships after taking delivery of its first eco tanker in 2012.

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