MPC Container Ships to Use CTL Payout for Scrubber Retrofits

Norwegian shipowner MPC Container Ships (MPCC) is looking to finance new scrubber retrofits with the insurance payout of a recent constructive total loss (CTL).

Following a grounding incident in September 2018, CTL was declared for the company’s container vessel AS Fortuna in early April 2019 after a detailed inspection.

The 1,345 TEU ship ran aground on Guayaquil, Ecuador while crossing Del Morro Channel when it suffered a total blackout due to a failure in the engineering department. It was exposed to strong waves unit being refloated in late September.

The constructive total loss and the subsequent sale of AS Fortuna have opened a window of opportunity for the company to finance vessel retrofits as it received a total of USD 8.3 million following the incident. The amount includes net insurance proceeds of USD 6.5 million and USD 1.8 million received from the sale of the damaged vessel.

MPC Container Ships revealed that it would use to funds, together with an 8.7 million equity injection, to install scrubbers on 5 bond security vessels at a total cost of around USD 17 million.

The company further explained that, based on a case-by-case asset analysis, it envisaged 10 scrubber installations in 2019, while it is preparing to run all other vessels (a total of 58) on compliant fuel.

MPC Container Ships said that the scrubbers installations are set to be completed no later than January 31, 2020