Business

BIMCO: Liner supply falls as operators reduce average sailing speed by 4%

When ships adjust their speed, the transport capacity is affected and the adjustment can be an effective way of managing capacity supply; lower speeds also reduce bunker oil consumption.

Published

2 years ago

May 9, 2023

Admin

International shipping association BIMCO on Wednesday (3 May) published a market report elaborating the average sailing speed has been reduced by 4% for the first quarter of 2023. Lower sailing speeds reduces bunker oil consumption and greenhouse gas emissions:

During the COVID-19 pandemic, liner operators increased the average sailing speed by up to 4% due to strong demand and widespread port congestion. Today, the situation is very different and in the first quarter of 2023 the average sailing speed has slowed to 13.8 knots, down 4% y/y, and could drop by 10% before 2025.

When ships adjust their speed, the transport capacity is affected and the adjustment can be an effective way of managing capacity supply. Lower sailing speeds also reduce bunker oil consumption and greenhouse gas emissions. Slow steaming was first introduced in the aftermath of the financial crisis, cutting sailing speed on mainline routes by as much as 20%.

Average sailing speed has reduced significantly, although the traditional faster speed in the head-haul direction remains. 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.

The speed difference between head-haul and back-haul direction may also be reduced in the future. To comply with the Energy Efficiency Existing Ship Index (EEXI) some ships have had to install Engine Power Limitations (EPL), reducing their top speed. In order to maintain the buffer between the top speed and scheduled speed (allowing ships to recover from delays in port or due to weather) the scheduled speed must be reduced. This will naturally impact mostly the faster head-haul direction and narrow difference in speed between the directions. The Carbon Intensity Indicator (CII) regulation and overall greenhouse gas emission targets may drive further reductions in sailing speed.

In part, the lower average sailing speed may be due to improved port congestion and some ships returning more slowly to Asia-Pacific than normal. However, we still believe it is a good indication of things to come. As highlighted in our Container Market Overview & Outlook reports throughout 2022, we believe that sailing speeds could fall by 10% before 2025.

SNOWgraph 03May2023 960x540 1

Photo credit: BIMCO
Published: 9 May, 2023

Newbuilding

Tsuneishi delivers world’s first methanol dual-fuel Ultramax bulker to NYK

“Green Future” was delivered at Tsuneishi factory on 13 May and will be chartered by NYK Bulk & Projects Carriers, an NYK Group company, from Kambara Kisen.

Published

1 day ago

May 15, 2025

Admin

Tsuneishi delivers world’s first methanol dual-fuel Ultramax bulker to NYK

Tsuneishi Shipbuilding on Wednesday (14 May) said it has delivered the world’s first methanol dual-fuel Ultramax bulk carrier, Green Future.

The 65,700 dwt vessel was delivered at its factory on 13 May and will be chartered by NYK Bulk & Projects Carriers, an NYK Group company, from Kambara Kisen.

Tsuneishi Shipbuilding said the vessel maintains the high cargo capacity and fuel efficiency characteristic of the TESS66 Aeroline design series, while enabling more sustainable operations through the use of methanol as a fuel.

The methanol fuel tank has been positioned to maximise safety and facilitate smooth cargo handling while maintaining loading efficiency. It is also equipped with a fuel-efficient main engine and Tsuneishi’s proprietary Aeroline technology to reduce wind resistance, delivering superior fuel performance.

Mr Okumura Sachio, Representative Director, President & Executive Officer of Tsuneishi Shipbuilding, said: “This delivery marks just the beginning. We will continue constructing methanol dual-fuelled vessels at our overseas facilities and remain steadfast in our pursuit of technological innovation to contribute to a more sustainable maritime industry and global environment.”

NYK said the vessel is the first bulk carrier in the NYK Group to be equipped with a dual-fuel engine that uses methanol and fuel oil.

Vessel Particulars

LOA: 199.99 m
Breadth: 32.25 m
Depth: 19.15 m
Deadweight: approx. 65,700 metric tonnes
Capacity: approx. 81,500 m3
Draft: 13.8 m

Photo credit: Tsuneishi Shipbuilding
Published: 15 May, 2025

Events

Green Shiptech China Congress to explore alternative bunker fuels and ship technologies

LNG, methanol and ammonia as well as fuel cell integration will be among key issues discussed at the annual conference which will be held on 25 to 26 September in Shanghai.

Published

1 day ago

May 15, 2025

Admin

Ridge China on Wednesday (14 May) announced it will be hosting the 14th Green Shiptech China Congress (GSCC), an annual conference which will be held on 25 to 26 September in Shanghai.

More than 4,400 experts and decision makers from governments, classification societies, shipowners, shipyards, research institutes, technology/equipment suppliers and consulting companies attended the previous GSCC from 2012 to 2024.

For 2025, over 400 industry experts, corporate decision makers and government officials will be engaged in comprehensive discussions on current issues of IMO, EU, USCG, China MSA’s policies and regulations, designs and standards for new ship models, innovative and sustainable green ship technologies at this annual conference.

Alternative bunker fuels such as LNG, methanol and ammonia as well as fuel cell integration will be part of the important issues discussed at the event.

Speakers will be from

IMO
European Commission
U.S. Coast Guard
China MSA
Financial Institutions
Maritime Research Institutes
Solution & Technology Providers
Shipowners
Shipyards
Classification Societies

Key topics

Policies and Regulations Update and Interpretate by IMO, European Commission, U.S. Coast Guard and China MSA
Retrofitting Vessels to Achieve Decarbonization Goals
Energy Efficiency Continues to Be Key for Decarbonization
Decarbonization Through Digitalization
Digital Technologies As a Key Enabler for Emissions Reduction
Impact of a Hull Coating Upgrade on Hull Efficiency
LNG As Marine Fuel: Pivoting Towards Cleaner Shipping
Methanol As a Marine Fuel
Ammonia’s Credentials As a Green Fuel
Wind Propulsion Technology
Fuel Cell Integration: Upcoming Challenges and Opportunity
Propelling Carbon-neutral Shipping with Green Engines and Alternative Fuels
Next-generation Electric and Hybrid Marine Propulsion Technologies and Components
Latest Developments in Energy Storage Systems

Interested parties may contact:

Mr. Quin Xu
Tel: +86 21 6607 8610 -8003
Mob: +86 13564222811
Email: [email protected]

Note: The English and Chinese version of the event website can be found here and here respectively while the event registration can be found here.

Photo credit: Ridge China
Published: 15 May, 2025

Bunker Fuel

TFG Marine to launch bunker fuel supply operations in Jamaica on 1 June

Firm will commence marine fuel supply operations at Port of Kingston and on north coast of Jamaica, with Scott Petroleum, a local supplier with insight into Caribbean bunker market.

Published

1 day ago

May 15, 2025

Admin

TFG Marine to launch bunker fuel supply operations in Jamaica from 1 June

Global marine fuel supply and procurement firm TFG Marine on Wednesday (14 May) said it will launch its bunkering service in Jamaica with its local partner, Scott Petroleum.

The marine fuel supply operations will commence at the Port of Kingston as well as on the north coast of Jamaica, from 1 June.

“The operation is being launched in partnership with Scott Petroleum, a trusted local supplier with over two decades of experience and unmatched insight into the Caribbean bunker market,” it said in a social media post.

Very Low Sulphur Fuel Oil (VLSFO), High Sulphur Fuel Oil (HSFO) and Low Sulphur Marine Gas Oil (LSMGO) fuels will be sourced locally from the Petrojam Limited-operated Kingston refinery and will be supplied via the bunker barge operated by Scott Petroleum.

“By combining Scott Petroleum’s local insight with TFG Marine’s global expertise and commitment to innovation, this new venture aims to set a new benchmark for marine fuel supply in the region, delivering reliable, efficient and transparent bunkering services to vessels calling at this key Caribbean port,” the company said.

Kenneth Dam, Head of Bunkering at TFG Marine, said: “We’re very happy to be setting up in Jamaica,” It’s a strategic location with strong demand and teaming up with Scott Petroleum means that we can hit the ground running with an existing reliable, well-run operation.

“We’re looking forward to bringing TFG Marine’s global expertise and fuel supply innovation to the Caribbean, and to raising the standard of service for marine fuel customers across the region.”

Gary Scott, CEO at Scott Petroleum, said: “We are excited about our partnership with TFG Marine. The new venture will form a strong force to expand the bunker service being offered in Jamaica and will be able to capture other opportunities that exist in the region”

Note: For inquiries regarding TFG Marine’s new vessel supply services in the region in collaboration with Scott Petroleum, contact [email protected] or [email protected].

Photo credit: TFG Marine
Published: 15 May, 2025