Boxship Speeds Advanced Further in September: VesselsValue

Container ships are heading towards speeds seen before the COVID-19 crisis. Image Credit: VesselsValue

Sub-Panamax container ship speeds climbed for a fourth month in September, according to shipping intelligence service VesselsValue, in a sign of the sector almost having overcome the COVID-19 slump.

Average laden Sub-Panamax speeds were 13.61 knots in September, according to data compiled by VesselsValue, up by 0.8% from a month earlier and by 0.2% from the same month of 2019.

Ship operators changing speeds according to strength or weakness in freight markets and bunker prices can have a significant impact on bunker demand.

The rise brings speeds "close to levels seen at the start of the year before the onset of Covid-19," the company's analysts told Ship & Bunker by email.

"This suggests demand has continuously improved, and matches the growth seen in Sub Panamax rates from c.$7,000 per day in July to c.$10,000 per day in September."

Tankers

VLCCs. Image Credit: VesselsValue

Meanwhile, in the tanker segment, laden VLCC speeds rose for the first time in five months.

The average speed for laden VLCCs was 11.99 knots in September, 0.6% higher on the month. The laden speed overtook the pace on ballast, which lost 0.6% on the month to 11.86 knots.

The laden increase "correlates with a climb in VLCC rates in September," VesselsValue said.

"Between the beginning and the middle of September, rates increased by 230%, from c.$4500 per day to c.$15,000 per day."

Dry Bulk

Supramax bulkers. Image Credit: VesselsValue

Dry bulk has also seen an increase in speed for some ships, with a marginal gain for Supramax bulkers.

The average speed for laden Supramax ships was 11.08 knots in September, up by 0.2% on the month and down by 0.4% on the year.

The increase "suggests that the outlook for quarter four could be positive, as speeds are now not far off reaching levels seen in September last year and rates are beginning to rise," VesselsValue said.