THE price of transport - even in emission control areas - has fallen despite mandates to use costly low sulphur fuel, according to MDS Transmodal analysts.
With oil prices sinking, it is cheaper to transport containers on Asia-Europe, transatlantic and European feeder services than last year, reports Lloyd's List.
Moreover, bunker prices are so low today that shipowners and managers can stop slow steaming, speed up ships, withdraw one per loop - and still save money.
Last year, regulations requiring the use of fuel with a sulphur content of 0.1 per cent were introduced from January 1 in the English Channel, North Sea, Baltic and North American coastal waters.
MDS Transmodal research shows fuel prices have declined to such an extent that on the Asia-Europe trade, the cost would have increased by US$10 per TEU when the low sulphur fuel surcharge came into effect.
But the price of fuel fell to $284 per tonne from the comparable period a year earlier of $557 per tonne. Thus, the cost of moving an Asia-Europe box has fallen by $118 per TEU.
MDS Transmodal analysts say vessels could still save if they abandoned slow steaming altogether.
"For the Asia-Europe trade lane, we have looked at a service featuring 11 vessels of 12,355 TEU running at some 17.4 knots," an analyst told Lloyd's List.
"Ships can be reduced to nine [per loop] with running at 23.7 knots to cover the same frequency and still the unit cost would be $5 per TEU lower," said one.
On the transatlantic trade lane, MDS estimated that based on fourth-quarter figures, unit costs would have increased by $23 per loaded TEU this year because of the requirement to use more expensive fuel.
Instead, the analyst said the drop in the cost of fuel means unit costs had resulted in a saving of $52 per loaded TEU compared with last year's level.
On intra-European feeder services, unit costs are also lower than last year. The unit cost on a Rotterdam-Dublin-Belfast service, for example, was expected to increase by $10 per TEU based on last year's figures. Instead, unit costs have actually declined by $16 per TEU.
WORLD SHIPPING
03 February 2015 - 21:27
Low sulphur cost impact by product of world oil price collapse
THE price of transport - even in emission control areas - has fallen despite mandates to use costly low sulphur fuel, according to MDS Transmodal analysts.
WORLD SHIPPING
03 February 2015 - 21:27
Low sulphur cost impact by product of world oil price collapse
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