GL: Lower Bunker Prices Won't Reverse ECO-Ship Trend

ECO ships justify new purchases beyond what market capacity would normally suggest

Germanischer Lloyd SE (GL) says the growing popularity of highly energy efficient "ECO-ships" is irreversible because of their potential to provide significant cost savings, even if bunker prices fall.

In a press conference presentation held at the Nor-Shipping 2013 event in Oslo yesterday, Christian von Oldershausen, GL's chief commercial officer, said cost savings emerge from vessel designs that target ships' real operating profiles, wider beam, and increased capacity, as well as the optimisation of hull lines, propulsion and onboard systems, and engines.

"We believe that ECO-ships are now the norm both today and for the future," von Oldershausen said.

"With owners seeing the benefits from new tonnage being up to a third more efficient than average existing vessels and customers insisting on better performance, we won't see many ships built that are not designed to minimise their fuel consumption and ecological impact."

"Alongside lower yard prices, bunker will be a significant driver for cost savings in new vessels," he added, a conclusion reached after analysing the composition of slot costs, made up of capital, operating, port/canal, and bunker costs.

Von Oldershausen said ECO-ship designs allow for savings across a range of operating speeds, and because of their advantages, new ECO container ships justify orders beyond what the market's overall tonnage balance would normally call for.

That issue has caused some observers to worry that purchases of fuel-saving ships will contribute to excess capacity, keeping shipping rates from rising.