World News
Maersk Line: "Very Attractive Payback" for Fuel-Saving Technology
Shipping giant Maersk Line says fuel efficiency programs, including the use of its huge new Triple-E class containerships, are a key to improving its position in the oversupplied market, the Wall Street Journal reports.
"We have invested $30 million in fuel-efficiency technology, an investment with a very attractive payback," said Morten Engelstoft, Maersk Line's chief operating officer.
The new Triple-E ship Majestic Maersk docked at Copenhagen as part of its maiden voyage Sunday, part of the company's effort to use the efficient large vessels to push smaller competitors out of the market and bring capacity in line with demand.
The Europe-Asia routes are about 10 percent over capacity, resulting in low rates.
"The Triple-Es may not operate at full capacity for now, but those who can afford them are ordering because of low prices offered by shipyards," said Jonathan Roach, senior container analyst at ship-broking company Braemar Seascope.
"It's a long-term investment because when we get out of the glut you will need bigger ships."
Maersk Line acknowledged in July that it would initially be operating the 18,000 twenty-foot-equivalent (TEU) ships below capacity because port infrastructure was not currently able to accommodate the vessels when fully loaded.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 624.50 | 1.00 | 732.00 | 8.50 |
| Rotterdam | 571.00 | 3.00 | 758.00 | 16.50 |
| Houston | 591.50 | 4.00 | 760.00 | 5.50 |
| Fujairah | 629.00 | 0.50 | 877.50 | 3.00 |
| Global 20 Ports Average | 637.00 | 0.00 | 819.00 | 3.00 |
| Global 4 Ports Average | 604.00 | 0.00 | 782.00 | 5.50 |
| Global Average Bunker Price | 688.00 | 2.50 | 879.00 | 1.00 |
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