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Drewry: Low oil reduces once much valued benefits of slow-steaming
BUNKER prices of US$100-$150 per tonne compared with $600 a tonne of yesteryear have cut shipping costs, but has also ended many benefits of slow steaming, notes London's Drewry Maritime Research.
Cutting the number of ships on a loop to the pre slow-steaming era of nine vessels, average service speeds for both the headhaul and backhaul routes would need to be increased to 22 knots, according to Drewry's calculation.
At $600 per tonne for bunker fuel, the savings from slow-steaming are clear, but as the price falls the advantage diminishes, said the research house.
"At $300 per tonne, there is very little change in slot cost if loop speed is increased and the number of vessels reduced," said Drewry, reported London's Loadstar.
And at a bunker price of $100 per tonne, "there are clear cost savings from increasing service speed, and reducing the number of vessels per loop".
Drewry does not expect an immediate rush to speed up loops on east-west trades, because of the already chronic overcapacity, which would be exacerbated by more surplus tonnage.
Cutting the number of ships on a loop to the pre slow-steaming era of nine vessels, average service speeds for both the headhaul and backhaul routes would need to be increased to 22 knots, according to Drewry's calculation.
At $600 per tonne for bunker fuel, the savings from slow-steaming are clear, but as the price falls the advantage diminishes, said the research house.
"At $300 per tonne, there is very little change in slot cost if loop speed is increased and the number of vessels reduced," said Drewry, reported London's Loadstar.
And at a bunker price of $100 per tonne, "there are clear cost savings from increasing service speed, and reducing the number of vessels per loop".
Drewry does not expect an immediate rush to speed up loops on east-west trades, because of the already chronic overcapacity, which would be exacerbated by more surplus tonnage.
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