World News
Slow Steaming Getting Less Attractive for Tankers
Rising charter rates and falling bunker prices is making slow-steaming among tankers less favourable, IHS Maritime 360 reports.
"Tanker daily hiring rates for shipowners are climbing now, very large crude carriers (VLCC) especially," a Singapore-based bunker trader was quoted as saying.
Slow steaming naturally extends journey time, and with daily spot chartering rates for VLCCs said to currently be around $90,000, charterers must decide between making savings on bunkers by slow steaming, or speeding up but saving money on a shorter charter time.
In December Ship & Bunker reported that VLCC rates approached five-year highs off of rising demand from companies looking to take advantage of low oil prices and hiring tankers as floating storage.
While the decision whether or not to slow steam is dependent on several factors, the practice was said to continue to make sense for shippers with fixed schedules.
Last week Maersk Line commented that it would stick with the practice as speeding up would require a "fundamental change" to its network.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 565.50 | 6.00 | 661.50 | 4.00 |
| Rotterdam | 510.00 | 2.00 | 661.00 | 2.00 |
| Houston | 548.00 | 2.50 | 666.50 | 0.50 |
| Fujairah | 555.50 | 5.00 | 746.00 | 2.50 |
| Global 20 Ports Average | 582.50 | 1.50 | 753.00 | 1.50 |
| Global 4 Ports Average | 544.50 | 3.00 | 683.50 | 1.00 |
| Global Average Bunker Price | 631.00 | 2.50 | 803.50 | 2.00 |
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