Purpose The study aimed to determine the compliance cost by comparing the net present value (NPV) of two sulphur abatement options, scrubber installation and very low sulphur oil (VLSFO) switching, with the case study of 907 TEUs and 3,000 TEU feeder container vessels while operating on distinct liner shipping routes. Design/methodology/approach This study adopted quantitative methodology to compare the NPV associated with utilizing VLSFO vs. installing scrubbers to comply with IMO sulphur requirements on two case study feeder vessel scenarios. Besides, sensitivity assessment of the findings was performed under volatile fuel prices, loading factors, freight rates and scrubber costs. Findings The study outcome reveals that retrofitting the 907 TEU container vessel with a scrubber is more financially advantageous when the economic lifespan of the vessel is above 9.5 years. In contrast, VLSFO is the most economically viable option for 3,000 TEU vessels in its entire lifespan. Besides, fuel switching is a cost-effective alternative for 907 TEU vessels while the price spread between VLSFO and high sulphur fuel oil is 147 dollars or less. Research limitations/implications This study primarily evaluated shipowners’ compliance costs between fuel switching and scrubber installation. Alternative options – such as wind, solar, fuel cells, battery charging and alternative fuels – were excluded due to barriers including limited infrastructure, technological maturity, availability and high retrofitting costs. Practical implications The outcomes will enhance the shipping industry's economic performance and competitiveness, reducing costs and risks and identifying opportunities for increased efficiency, innovation and market differentiation while preparing for future regulatory requirements. Originality/value The study's novelty lies in its quantitative assessment of sulphur abatement techniques tailored to feeder container vessels, with a focus on NPV under varied operational and market scenarios. Additionally, it provides actionable insights for ship owners ahead of the Mediterranean Sea emission control area enforcement, emphasizing mixed compliance strategies.
Mahmud et al. (Mon,) studied this question.