GOGL CEO Birgitte Vartdal sees vessel speeds heading lower. Image Credit: Golden Ocean Group Limited
Birgitte Vartdal, CEO at Golden Ocean Group Limited [NASDAQ:GOGL] (GOGL), sees vessels slowing down as IMO 2020 prompts bunker prices to rise.
But this is just the overall picture, and in fact in some cases speeds may rise, she said during today’s Q3 earnings call when asked how a $200-$300/mt price jump for fuel would impact the average speed of the fleet.
“In theory, the average speeds should almost be lower today than what it is, but I think you would see part of the fleet potentially speeding up, you will see part of the fleet potentially speeding down, so due to the weighting I would guess that you see slightly slower speeds on average for the fleet, depending a bit which segment you are in and how much the scrubber uptake is,” she said
“It’s not one easy number, but you can talk to the direction.”
Vartdal is not alone in seeing IMO2020 prompting a slowing of ship speeds, with Nicolas Sartini, Chief Executive Officer, APL, expressing a similar sentiment during his recent Keynote speech at SIBCON last month.
* Earnings call transcript provided in part by Seeking Alpha