Stena Bulk: Slow Steaming and Technology is the Key to Maximising Profits

by Ship & Bunker News Team
Wednesday September 17, 2014

Swedish tanker shipping company Stena Bulk has saved more than SEK 65 million ($9.1 million) during the last 12 months thanks to efficiency-enhancing measures and reduced vessel speed, and intends to continue to focus its efforts on slow steaming and technology to help maximise its future profits, the carrier said last week in a written statement.

"In today's market, it is very important that we shipowners utilise our existing fleet in the best possible way from an energy and environmental perspective and carefully investigate the potential for improvement, both technological and operational," said Erik Hånell, President & CEO of Stena Bulk.

Bunkers account for more than 60 percent of freight costs, the firm noted, so operating vessels as energy-efficiently as possible was an "obvious" thing to do.

Giving an example of a modern 160,000 dwt Suezmax tanker, Stena Bulk says that at current bunker price levels the freight rate must average $40,000 per day over time to justify a speed increase of 0.5 knots.

"In other words, the freight rate must be doubled before even a small speed increase can be justified based on market conditions so far in 2014," it said.

The firm says it has also looked at technical solutions to reducing bunker costs, noting that adjusting a vessel's propeller and bulb to match its actual speed can have a significant impact on fuel consumption.

"The vessels' technical design is a key factor, but how vessels are operated in terms of energy management is just as important. When it comes to the design and operational excellence of its latest vessels, Stena Bulk has been successful in both these areas," said Hånell.

In June last year Stena Bulk said they had also saved SEK 65 million through their energy efficiency program.