World News
Slow Steaming Better than Eco-Newbuilds, Says Clarkson Research
Fuel-saving new bulk carriers can improve shipping economies, but slow steaming remains the best way to drop costs, says shipping intelligence firm Clarkson Research.
The firm said it analysed ships delivered since 1965, with consumption levels ranging from 25 tonnes per day (tpd) to more than 60 tpd, and found that fuel efficiency rose sharply between 1975 and 1988 but has been on the decline since then.
"The fuel consumption in the last 20 years was pretty flat and on paper at least, many of the modern ships are less efficient than older generations," the firm said.
"Secondly the big improvement 1975-88 which started from $2/bbl gas guzzlers will be difficult to repeat because the technology has been squeezed so hard over the last 25 years."
Ship operators who want to reduce their fuel consumption can reduce their speed "and good old ships can play this game as well as new ships," Clarkson said.
While a ship consuming only 28 tpd, like new Japanese Supramax bulkers, can reduce fuel consumption by 15 to 20 percent, they also involve higher capital costs and uncertainties around real-world performance.
"Eco-features are definitely a nice bonus if you need a new ship, but it's the 'need' issue that's tricky," the firm said.
Companies who have ordered fuel-saving bulk carriers from Japanese shipyards earlier this year include Golden Ocean and Star Bulk, while companies including Pacific Basin Shipping feel buying second hand vessels offers a better return on capital than the new eco-ships.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 623.50 | 0.00 | 723.50 | 3.00 |
| Rotterdam | 568.00 | 2.00 | 741.50 | 4.50 |
| Houston | 595.50 | 10.50 | 765.50 | 15.50 |
| Fujairah | 628.50 | 0.50 | 874.50 | 6.50 |
| Global 20 Ports Average | 637.00 | 1.00 | 816.00 | 0.50 |
| Global 4 Ports Average | 604.00 | 3.50 | 776.50 | 3.00 |
| Global Average Bunker Price | 690.50 | 0.50 | 878.00 | 1.50 |
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