12AUG2019 - NEWS - Carriers looking to fix charters long-term as IMO 2020 squeezes ship supply

Non-operating containership owners Seaspan and Danaos have reported “positive supply side-effects” from the IMO’s 0.5% sulphur cap on vessels, coming into force next January.Indeed, a zero orderbook for container tonnage under 10,000 teu, combined with more ships being taken out of service for scrubber installation, has resulted in a significant tightening of supply in the boxship charter market.The world’s largest independent owner, Seaspan, said it expected scrubber programmes to run through into 2021, and it predicted a further squeeze coming from vessel speed reductions as carriers ramp up their slow-steaming strategies post-IMO 2020, to compensate for the higher cost of compliant fuel.