Eco Ship Savings Not as High as Yards Claim

During an earnings call for Diana Shipping’s Q3 2012 Results, an analyst posed a question on “eco ships” and what the trade off looks for new versus used since it relates to more fuel efficient level. According to Anastasios C. Margaronis, president of Diana Shipping Inc., fuel-saving ECO ships are not likely to provide shipowners with major savings.

More specifically Mr. Margaronis said that the benefit of an eco ship is not in the degree that the yards are trying to present it to be. There is going to be small saving, and of course when you order a vessel is good to take the new technology rather than the old one. Eco ships should not be the reason why someone should invest in a new building. The reason why that someone should invest in new buildings is the timing and the price that you will find the vessel. There is no harm done buying an eco ship, but the most important factor is the correct timing of that purchase.

Sources: Ship&Bunker, Seeking Alpha

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