Odfjell has opted to sail on low sulfur fuel as opposed to installing scrubbers in order to comply with the new global sulfur regulations taking effect January 2020.
CEO Kristian Mørch announced the decision Thursday at a conference held by Pareto Securities on the oil and gas market, report several media.
"Our conclusion for the moment is that it does not make sense for Odfjell (to install scrubbers)," chief executive Kristian Mørch said at Pareto Securities' 25th Oil & Offshore Conference Thursday.
"First of all, our fleet spends around 50 percent of its time in ports, where scrubbers are pointless, and the second part is that 60 percent of our revenues are covered by contracts with our customers and they have bunker adjustment clauses," Mørch said, referring to compensation for any rise in bunker prices.
Odfjell's announcement comes at a time where shipping companies are busy declaring their use of either scrubbers or low sulfur fuel.
Moving towards 2020, the industry estimates that approximately 2,000 vessels globally will be fitted with scrubbers, meaning a small share of the global fleet.
English Edit: Lena Rutkowski