VesselsValue Reports Advance in Boxship Speeds

Post Panamaxes showed the biggest increase in speed among boxships. Image Credit: VesselsValue

Post Panamax container ship speeds climbed for a second month in July, according to shipping intelligence service VesselsValue, in a sign of the sector gradually recovering from the COVID-19 crisis.

Average laden Post Panamax speeds were 15.29 knots in July, according to data compiled by VesselsValue, up by 1.8% from a month earlier.

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

"This is yet to reach the speeds seen towards the end of 2019, but is heading in the right direction," the company's analysts told Ship & Bunker by email.

"Increased speeds also correlate with increases seen in Post Panamax charter rates through July, suggesting that the sector is beginning to become more active again after an unsettling start to 2020."

Tankers

Meanwhile, in the tanker segment, Panamax dirty tankers have also started to accelerate.

The average speed for laden Panamaxes was 11.36 knots in July, 2.3% higher on the month.

"Average laden speed for the sector has been increasing since June, after a period of reduced, but relatively steady speeds between March and June," VesselsValue said.

"Now that floating storage levels are decreasing after a strong second quarter, this increase in speed may be a sign of increasing oil demand again as some countries begin to ease lockdowns."

Dry Bulk

Dry bulk has also seen an increase in speed for some ships, with Capesize vessels continuing to gain.

The average speed for laden Capesize bulkers was 11.16 knots in July, up by 2.3% on the month.

"Average speeds have been increasing for five months and have now exceeded speeds compared to the same period last year by 4%," VesselsValue said.

"After an initial drop in February and March this year, Capesize rates began to climb at the start of June and peaked at the start of July at c.34,000 USD a day, which slightly exceeded rates in July 2019.

"The Capesize sector is therefore showing good signs of recovery, as steel production in the East resurges, increasing the demand for coal and iron ore transported by these vessels."