Maersk Tankers is taking slow steaming to a new level on its VLCCs with speeds as low as 8.5 knots – something that no other tanker owner has done, the company has claimed.
The company said that it had taken a hard look at bunker consumption, which for example, on the VLCCs makes up about 85% of the voyage costs.
By slow steaming, the company had significantly improved earnings over the past 18 months, compared to competitors.
Ballasting at 8.5 knots – compared to the normal 14-16 knots - saved about 50% in bunker costs on the ballast leg and removed $400,000 on the bunker bill for a standard round voyage.
However, it also added another 11 days to the voyage, but as Maersk Tankers’ CEO Søren Skou commented in a recent interview: “What it effectively means is that on an Arabian Gulf to Japan or China voyage the fuel savings will pay for the additional days. It doesn’t really cost you to extend the time the voyage takes and you are doing something good for the environment.”
Long term, Maersk Tankers regarded the market as fundamentally sound, but short term it will be turbulent. The total VLCC fleet will grow by 60 vessels in the coming 12 months and even with oil demand back to at historical high levels, this will be a challenge.
Maersk said that this move in reality is rather simple: super slow steaming requires engine load to be decreased down to 10%, which is equivalent to 50% speed. This procedure was approved by the two main producers of VLCC engines, Wartsila and MAN B&W and only required a few precautions, the company explained.
“For Maersk Tankers this is really a no-brainer. We have operational knowhow and experience to super slow steam and in the current market it can make the difference between making a profit or taking a loss”, said Claus Gronborg, head of crude at Maersk Tankers.