Scrubber finance plan hedges against rising costs

Pacific Green’s fleet management pricing agreement enables owners to fix pricing for their fleet based on each vessel’s exhaust gas emissions in situations where the owner does not yet know the phasing of system installs on their fleet on a vessel by vessel basis.

Neil Carmichael, CEO, Pacific Green, said: “The Fleet Management Pricing Agreement enables charterers and ship owners maximum flexibility as they can commit on the quantity of vessels but have flexibility to specify the exact ships much later with the substantial benefit of locking in advantageous pricing now.”

Pacific Green will reset the pricing curve (based on ship emissions) every 60 days to reflect increasing capacity constraints in both manufacturing and shipyard space as demand for scrubbers increases towards 2020. The curve will next be reset on 1 September 2018 and every 60 days thereafter.

The company said that the scheme will enable owners to optimise chartering opportunities while ensuring they will be compliant with the new IMO sulphur regulations on 1 January 2020.