Demand for scrubbers surges

Despite the continued decline in the price differential of marine fuels during the first half of the year, demand for exhaust gas cleaning systems (scrubbers)—which help reduce sulfur oxide (SOx) emissions—has surged sharply, defying forecasts that predicted a slowdown in new installations.

The price difference between high-sulfur fuel oil (HSFO) and very low-sulfur fuel oil (VLSFO) – a key factor in the amortization of investment in scrubbers – remains limited in 2025, especially in the period before the conflict between Israel and Iran.

For example, last week, the average difference in the 20 largest bunkering ports was just 69 dollars per ton, according to Ship & Bunker data.

The spread has remained below 100 dollars since January, reaching 55.50 per ton in mid-March—the lowest level since November 2020.

According to data from Clarksons Research, orders for scrubbers—both for newbuilds and retrofits—are rising sharply, particularly in the tanker and container ship segments. As of June 1, there were 455 tanker scrubber orders, marking a 16% increase since February 1.

Container ships with scrubbers on order have reached 207, also showing a 16% increase.

At the same time, retrofits on existing vessels are also accelerating. Container ships are leading the trend, with 127 retrofits underway—a 25% increase since February.

Bulk carriers are close behind, with 55 retrofits scheduled—more than double the 25 recorded four months ago.

In total, there are 166 more scrubber installations planned compared to February: 107 on newbuilds and 59 through retrofits.