8.9 C
Monday, April 6, 2020
Home Featured News TS Lines eyes scrubbers as it posts higher earnings

TS Lines eyes scrubbers as it posts higher earnings

TS Lines, the privately owned Hong Kong-Taiwanese intra-Asia carrier, is opting for scrubbers to manage the costs of complying with the International Maritime Organization’s global sulphur cap.

The company announced its scrubber intentions when it posted new highs in terms of container volumes and earnings in 2019.

In 2019, TS Lines, named after its founding CEO, Chen Te-sheng, carried over 1.65 million TEU, exceeding the 1.62 million TEU shipped in 2018. Operating profits for 2019 are expected to be TW$1.65 billon (US$54.91 million), more than doubling from TW$660 million (US$21.6 million) in 2018.

TS Lines’ management believes that the biggest challenge facing liner operators in 2020 will be the higher fuel costs, which are estimated to rise from US$11 billion to US$15 billion.

Since February, eight of TS Lines’ ships have been retrofitted with scrubbers and, in the first half of the year, scrubbers will be installed on two newbuildings and another two chartered ships.

By August, TS Lines will be operating 12 scrubber-fitted ships, which forms a third of its operating capacity, as the company has another 30 vessels on charter. The company’s management believes this strategy will be more cost-effective than burning expensive low-sulphur fuel oil.

TS Lines was initially registered in Hong Kong due to Taiwanese restrictions relating to non-vessel owning liner operators. In 2004, TS Lines obtained a secondary registration in Taiwan when it became a shipowner after purchasing secondhand vessels.

TS Lines commissioned newbuildings for the first time in 2015, when four 1,800 TEU ships were ordered from Taiwanese shipbuilder CSBC Corporation. The company now has 10 owned ships, with another two vessels being built at Kyokuyo Dockyard in Japan. The two newbuildings would be delivered in April and July. TS Lines indicated that it may order more ships, due to the shortage of feeder vessels.

Martina Li
Asia Correspondent

- Advertisment -your ad here

Latest Posts

MABUX bunker index – 3 April

The members of Organization of the Petroleum Exporting Countries (OPEC) have not achieved to agree on an emergency low-level meeting to discuss a market...

Konecranes receives reach stackers record-order

Konecranes won its largest-ever reach stacker contract, for 39 units,from German distributor Richter Fördertechnik GmbH & Co. KG, in March 2020. Deliveries for the Konecranes...

MSC suggests short sea shipping solution

MSC says its short sea services in Europe can help meet any present and future domestic and foreign trade demands, especially as Covid-19 crisis...

Major shipping carriers update schedules due to pandemic crisis

The largest container shipping companies continue to update their schedules, as they are forced to make service adjustments and omit many sailings. As the coronavirus...

Wuhan’s container ports return to normal operations

Container ports in the Chinese city of Wuhan have fully resumed operations, as movement restrictions are gradually lifted in the original Covid-19 epicentre. Wuhan International...