Retrofitting existing tonnage could deliver a better return on investment in some ship types than ordering Eco newbuildings, a bank claims.
Credit-Suisse analyst Greg Lewis says in a recent report that shipowners can pay only $2m to $3m for retrofit of their existing vessels, which can cut fuel cost by around one tenth.
“Buying existing tonnage and upgrading it should generate a superior return on capital,” Lewis said. 
“However, if a desired acquisition target (ie Post-Panamax Containership) is not available, then a newbuild eco vessel is the way to go,” he added.
“While the timing of a shipping recovery remains uncertain – we would expect slower moving eco vessels to garner lower dayrates during a peak in the cycle,” Lewis said.