Maersk Line: Moving Away From Slow-Steaming Would Require a Fundamental Change to the Network

Maersk Line will continue to slow-steam despite falling bunker prices. 

Maersk Line will not stop slow-steaming despite falling oil prices making it more economically viable to speed up ships, Joc reports.

According to a Maersk Line spokesman, the company's network is optimized for "commercial and cost benefits."

"A move away from the current slow-steaming approach would entail a fundamental change to the network,” he said.

But with port congestion said to have been an issue in the industry over the last year, a number of carriers say that low bunker prices mean they now have the flexibility to speed up if needed, which should result in improved liner reliability.

“Lower fuel prices should make the decision by carriers to speed up to catch up delays a bit easier,” said OOCL's director of trades Stephen Ng.

In October Alphaliner said that slow steaming keeps 1.3 million TEU employed, the equivalent of 7 percent of the global container fleet capacity, and some fear if vessels speed up it will only add to the issue of overcapacity in the market.

However a representative of Taiwan line Evergreen said any increase in speed would be done only for matters of scheduling performance.

“The main reason of such an arrangement is to maintain schedule integrity and service quality, but it does not affect the number of vessels in service routes and tonnage supply,”

The industry is reported to be battling crashing freight rates due to a glut of capacity, especially along the East-West routes.

“The overcapacity in the industry and projected supply-demand gap in 2015 continue to favour slow steaming, using larger, fuel-efficient container ships,” said APL President Kenneth Glenn. 

It was reported late last year that the bunker price drop would likely not result in any long-term benefits for shipping lines.