Vessels are heading into yards for various decarbonisation retrofits due to the EU emission trading scheme and FuelEU Maritime regulations. This is increasing repair yard days ahead of the new wave of regulatory pressure, something that is forcing owners to open up their calendars and plan dry-docking well ahead for fear of not having a spot in place. In a new report, UK consultancy Drewry claimed that repair yard days for capesize ships are climbing in 2025, due to retrofits for upcoming regulation changes. As a result, effective supply is being sucked out of the market, lifting utilisation of the tonnage that remains on the water. Carbon lntensity lndicator (CII) compliance adjustments, the EU ETS coming into force, and the tightening of FuelEU Maritime requirements are forcing owners to modify vessels beyond simple fixes. According to Drewry, owners are looking at propulsion-improving devices, energy-saving devices, shaft generators, and hybrid systems, among others. These modifications will attempt to meet the upcoming regulations and avoid penalties that will only get higher from 2026 onward. Retrofits which can meet these goals will absorb vessel capacity, tighten supply and boost the utilisation of vessels still on the water. Even though Drewry only analysed capesizes, the overall conclusion of retrofits increasing the number of lost trading days can pretty much be applied across all vessel types. 2027 and 2028 will be critical for locking in yard time on favourable terms “There are four key regulatory drivers that will strengthen the business case for efficiency retrofits – CII, EU ETS, FuelEU Maritime and the International Maritime Organization’s Net Zero Framework. As the volume of retrofits increases, yard time will rise as ships go in for both scheduled drydock and retrofits,” Jack Pringle, global head of energy transition advisory at Lloyd’s Register, explains. Yiannis Parganas, director of the research department at Greek broker Intermodal, reiteratsd as much by saying that there is a clear rise in retrofit demand across the merchant fleet in 2025, not just for capesize bulkers but for all dry bulk sizes, tankers, containerships, and gas carriers as well. “Owners are moving early to install energy-saving technologies and upgrade propulsion systems as they prepare for the full rollout of the EU ETS in 2026 and the additional requirements under FuelEU Maritime. In our view, this is a pre-emptive push to avoid spiralling compliance costs and the reputational risk of poor CII ratings,” he tells Splash Extra. However, this current predicament is not without precedent. The maritime sector has seen several retrofitting phases. Ahead of the 2020 sulphur cap, many shipowners chose to integrate scrubbers, prolonging their time in shipyards. In 2022, shipyard stays increased as owners prepared for Energy Efficiency Existing Ship Index (EEXI) and CII regulations. Most vessels were mandated to secure EEXI certification during their 2023 International Air Pollution Prevention (IAPP) inspections, so modifications were mostly done in 2022. Shipowners made use of their vessels’ time in drydock to make the required modifications ahead of these regulations coming into effect. And the current situation is an echo of earlier regulatory transitions. Lloyd Register’s Jack Pringle sees a similar thing happening now. He believes that owners will optimise their retrofit implementation projects by aligning them with their existing drydock schedules,