Business

Oko-Institut report finds positive impact on slow steaming for bulkers

Highest savings achieved when bunker prices are high and owners’ earnings are low, including on long journeys.

Published

7 years ago

May 10, 2019

Admin

European environmental research and consultancy institution Oko-Institut has released a study ‘Impact of slow steaming for different types of ships carrying bulk cargo’ stating speed reductions of up to -30% leading to net cost savings for the shipping industry.

The highest savings can be achieved in scenarios when bunker fuel prices are high and shipowners’ earnings are low, including on long journeys (30,000 nautical miles).

These findings are applicable to long-distance trades, such as iron ore exports from Brazil to China.

Savings will diminish or become negative when fuel prices are very low or if ships slow down too much (beyond -30%). But even in that case, the negative cost impacts will likely be insignificant.

This study looks only at bulk carriers only, but the results are likely hold true for most other ship types too, which are engaged in comparable trades.

The concluding remarks of the study states:

In each of the scenarios, the adoption of progressively higher speed reductions extends the number of days at sea and this results in additional bulk freight costs (i.e. the longer voyages due to the introduction of speed reductions leads to an increase in operational, capital and revenue costs). However, based upon our analysis these additional bulk freight costs are offset by the lower fuel costs in the majority of the scenarios, unless the fuel price is very low or a ‘break-even point’ speed reduction is exceeded where the marginal fuel cost reductions no longer offset the marginal operational cost increases under slow steaming. The reason for this is that the extra time has a reciprocal relationship with the speed reduction whereas the marginal benefits of reducing speed on fuel consumption are highest at full speed and decrease the slower a ship is already going. Even in circumstances where slow steaming may result in an increase in bulk freight costs (i.e. under the assumption of low fuel costs or high daily earnings), it likely to only have a negligible impact on product prices in most cases as maritime transport only accounts for a minor share of the total transport costs of a product.

The results of the study also demonstrates that the impact of slow steaming on the total costs of smaller vessels, such as handysize bulk carriers, is considerably less than for larger vessels such as either panamax or capesize bulk carriers. This is due to the fact that the relative importance of time based costs (i.e. crew, insurance, capital costs etc) compared to fuel costs are higher for smaller ships than for larger vessels. The same relative fuel savings therefore have a lower impact on the total costs of the trip.

Finally, it is important to add that changes to the bulk freight costs of an individual vessel will not necessarily lead to a corresponding adjustment to freight rates. The extent to which changes to freight costs will be passed through to freight rates will ultimately depend on the market situation and this topic may warrant further research in the future.

The full report can be obtained here.

Photo credit: Impact of slow steaming for different types of ships carrying bulk cargo
Published: 10 May, 2019

Legal

Singapore withdraws remaining 127 charges against Hin Leong founder OK Lim

Lim Oon Kuin, also known as OK Lim, was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges on 17 July.

Published

14 hours ago

July 21, 2026

Admin

Founder of collapsed oil trader Hin Leong Trading, Lim Oon Kuin, also known as OK Lim, has had the remaining 127 charges against him withdrawn, according to The Straits Times on Monday (20 July).

OK Lim was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges, including those for cheating, on 17 July. The discharge means Lim cannot be prosecuted again for the same offences.

Lim, 84, is currently serving a 13½-year prison sentence after the High Court reduced his original 17½-year jail term in March 2026. He was convicted in 2024 on two cheating charges and one count of abetting forgery in a case prosecutors described as one of Singapore’s most serious trade finance frauds.

Lim was convicted in May 2024 of two charges of cheating the Hongkong and Shanghai Banking Corporation (HSBC) and one count of abetting forgery that proceeded to trial out of a total of 130 criminal charges.

He was first charged in court on 14 August 2020, and was subsequently handed further charges in court on 25 September 2020, 30 April 2021 and 24 June 2021 for his role in perpetuating fraud on various financial institutions.

A total of 130 charges were eventually brought against him for cheating and forgery-related offences.

Photo credit: Sora Shimazaki
Published: 21 July, 2026

Winding up

Singapore: Coastal Logistics Pte Ltd to be wound up voluntarily

Coastal Logistics was reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

Published

14 hours ago

July 21, 2026

Admin

Several resolutions for Coastal Logistics Pte Ltd were made during an extraordinary general meeting held on 14 July, according to a notice in the Government Gazette on Friday (4 July).

The following resolutions were duly passed during the meeting:

As Special Resolution

That it has been proved to the satisfaction of the meeting that the Company cannot by reason of its liabilities continue its business and accordingly the Company be wound up voluntarily pursuant to Section 160(1)(b) of the Insolvency, Restructuring and Dissolution Act 2018 (No. 40 of 2018);

As Ordinary Resolutions

that Mr. Wong Pheng Cheong Martin and Ms. Koay May Yee, both care of FTI Consulting (Singapore) Pte Ltd, One Raffles Quay, #27-10 South Tower, Singapore 048583 be appointed as the joint and several Liquidators of the Company for the purpose of such winding up; and
that the Liquidators be at liberty to open, maintain and operate any bank account(s) or account(s) for monies received by them as Liquidators with such bank(s) as they deem fit; and
that a Committee of Inspection will not be formed.

Manifold Times previously reported Nicholas James Gronow, director of Heng Tong Fuels & Shipping and Coastal Logistics, filed statutory declarations for both companies stating the firms cannot continue their businesses due to liabilities.

Both companies were reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

In 2019, several vessels owned by both firms entered the sale & purchase (S&P) market in Singapore.

Photo credit: Drew Beamer
Published: 21 July, 2026

LNG Bunkering

PIL’s LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on LNG and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

Published

14 hours ago

July 21, 2026

Admin

PIL's LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

Singapore-based Pacific International Lines Pte Ltd on Monday (20 July) said its first 13,000 TEU LNG dual-fuel container vessel, Kota Elok, recently made her maiden call to Singapore on 15 July.

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on liquefied natural gas (LNG) and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

The vessel also incorporated energy-saving features and digital technologies to reduce fuel consumption and enhance operational performance, as well as a bow windshield to improve aerodynamics, contributing to improved fuel efficiency and lower emissions over the course of long-haul voyages.

“Following Singapore, Kota Elok will continue her voyage on our East Coast Service 1 (ES1) route to South America, calling at ports in Brazil, Uruguay, and Argentina before returning to Asia,” the company said in a social media post.

Kota Elok also became PIL’s first vessel to receive Lloyd’s Register certification for compliance with the IACS UR E26 and UR E27 cyber security requirements.

Developed by the International Association of Classification Societies (IACS), UR E26 and UR E27 are mandatory cyber resilience requirements for newbuild vessels contracted from 1 July 2024.

Photo credit: Pacific International Lines
Published: 21 July, 2026