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No early retirements due to 2020 sulfur cap, Del Rio saysNo early retirements due to 2020 sulfur cap, Del Rio says

In advance of 2020's global cap on sulfur emissions from ships, Norwegian Cruise Line Holdings has been retrofitting a portion of its fleet with scrubbers, and newbuilds like Norwegian Bliss are arriving scrubber-equipped.

Anne Kalosh, Editor, Seatrade Cruise News & Senior Associate Editor, Seatrade Cruise Review

May 2, 2018

1 Min Read
Credit: Seatrade Cruise News

Under international and US regulations, ships with sulfur-reducing technology can continue to burn less expensive HFO since their scrubbers 'scrub out' sulfur oxides.

HFO/MGO proportions will change

Currently the NCLH fleet uses about 70% HFO and 30% MGO. NCLH interim CFO Mark Kempa said that proportion is expected to flip to about 40% HFO and 60% MGO in 2020. The ships without scrubbers will have to use MGO.

No forced retirements

NCLH president and CEO Frank Del Rio does not anticipate older vessels will be forced into retirement by the stricter International Maritime Organization emissions standards.

The company has 'spent a lot' retrofitting its ships, and they serve premium destinations, which command a higher price point, he said.

'I don't see the price of fuel causing us any kind of accelerated retirement,' Del Rio told analysts during Wednesday's first quarter earnings call.

About the Author

Anne Kalosh

Editor, Seatrade Cruise News & Senior Associate Editor, Seatrade Cruise Review

Anne Kalosh covers global stories, reporting both breaking and in-depth news on cruising's significant people, places, ships and trends. A sought-after expert on cruising, she has moderated conferences around the world, including the high-profile State of the Industry panel at Seatrade Cruise Global. She created and led the acclaimed itinerary-planning case study for Seatrade's cruise master classes held at Cambridge and Oxford universities. She has been the cruise columnist for AFAR.com, and her freelance stories have appeared in a wide range of publications, from The New York Times to The Miami Herald.

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