Plummeting Crude, Bunker Prices Unlikely to Change Slow Steaming Practices

Slow steaming will stay in bulker market, says Fisher

Slow steaming is likely to remain a feature of shipping markets even as bunker prices continue a recent downward trend on the back of plummeting oil prices, Seatrade Global reports.

"We designed the network on [the basis of] slow steaming, if we were to make any change it needs to be a low bunker price for some consistent period of time," said Lars Mikael Jensen, CEO for Maersk Line's Asia Pacific region.

"But slow steaming is also an important part for the industry and our customers for delivering on the CO2 agenda," he added.

Dry bulk shippers are also unlikely to move away from slow steaming, according to Masterbulk CEO Nicholas Fisher.

While low bunker prices might support faster sailing, use of other consumables such as lubricants would also increase, and problems of overcapacity would worsen, said Fisher.

"Besides, cargo won't pay for shorter transit times," he said.

But the picture is slightly more nuanced in the large tanker sector, said shipbroker Poten & Partners.

"Earlier in the year, when the rates were lower, slow steaming made more sense as the additional revenue that could be earned during the additional 3.9 ballasting days was lower than the fuel savings," it explained in its weekly report.

"At current market rates and lower bunker prices, this situation has shifted.

"Increasing the ballast speed could prove to be beneficial."

Ship & Bunker data show bunker prices at the world's major bunkering ports are all significantly down from prices 12 months ago.

Research house Alphaliner said recently that slow steaming keeps the equivalent of seven percent of the global container fleet capacity employed.