THE fall in bunker prices to six-year lows is putting pressure on shipowners and operators to scrap fuel-saving "slow steaming", a practice that took hold in 2007s.
But shipowners and operators are reluctant to comply because this would result in putting more tonnage on the market in a period of massive over supply and more mega-ships coming from the yards, Reuters reports.
"Low bunker fuel prices are a negative factor as they lower the freight rate level at which ships will speed up and thus increase shipping supply," said Mats Berglund, chief executive at dry bulk shipper, Pacific Basin Shipping.
Bunker prices of Benchmark 380-cst marine fuel prices in Singapore have halved over the past year in line with a slump in crude prices.
London maritime consultancy Drewry estimated a container shipper operating eleven 18,000-TEU ships on a single Asia-Europe route would save more than $69 million this year over 2014 assuming average bunker prices of $370 a tonne.
Drewry does not expect containerships to speed up sailing to avoid the risk of flooding the market with capacity, but ship operators are running more quickly on some routes.
WORLD SHIPPING
26 August 2015 - 22:55
Shippers say scrap slow steaming, but owners fear excess capacity produced
THE fall in bunker prices to six-year lows is putting pressure on shipowners and operators to scrap fuel-saving "slow steaming", a practice that took hold in 2007s.
WORLD SHIPPING
26 August 2015 - 22:55
Shippers say scrap slow steaming, but owners fear excess capacity produced
This news 3650 hits received.
These news may also interest you