World News
Boxship Average Speeds Could Drop by 10% by 2025: BIMCO
The average sailing speed of container ships could drop by as much as 10% by 2025 as their operators seek to maximise fuel efficiency in the wake of emissions regulations, according to shipping industry body BIMCO.
Average boxship sailing speeds were 13.8 knots in the first quarter, down by 4% on the year, and could lose a further 10% by 2025, BIMCO said in a research note on its website last week.
Ships can cut their fuel bills by lowering their speed to the optimum level for fuel efficiency, and tend to do so in response to weak freight markets.
"Average sailing speed has reduced significantly, although the traditional faster speed in the head-haul direction remains," BIMCO said in the note.
"The larger ships sailing intercontinental trades have also continued to sail faster than the smaller ships in intra-regional trades.
"These traditions may, however, also be about to change.
In 2019, the largest ships sailed on average 2.6 knots faster than the smallest ships.
"During the first quarter of 2022 that speed difference had narrowed to 1.8 and further to 1.6 during the first quarter of 2023.
"As a result, the average sailing speed weighted by the ships' TEU capacity fell by 6% y/y in the first quarter of 2023 whereas the simple average sailing speed fell only 4% y/y.
"Supply has therefore decreased faster than the sailing speed."
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 571.00 | 1.50 | 685.50 | 5.50 |
| Rotterdam | 516.50 | 1.50 | 677.50 | 3.50 |
| Houston | 556.00 | 6.00 | 679.00 | 1.00 |
| Fujairah | 565.00 | 4.50 | 755.00 | 1.50 |
| Global 20 Ports Average | 589.00 | 3.00 | 764.50 | 3.50 |
| Global 4 Ports Average | 552.00 | 3.00 | 699.00 | 2.50 |
| Global Average Bunker Price | 635.50 | 1.00 | 811.50 | 11.00 |
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