Contradictory as it may sound, we report new build Triple ‘E’ 18,000 TEU container ships on the one hand, and lower volumes, overcapacity, disastrously low freight rates and losses on the other.
In 2013, per vessel capacity growth is not driven by demand from international trade, but these Triple E’s –
Economies of Scale, Energy efficiencies and Environmental improvements. Unsustainable rates need sustainable solutions to international trade.
To achieve a bunker cost reduction, the engine of the future will control fuel consumption much more efficiently against conditions at sea. Slow steaming is already commonplace, and it is estimated that by reducing speeds by ten percent, it can create a cost saving in fuel consumption of up to thirty percent.
Longer transits are here to stay, but in leaner times such as these, perhaps the rate at which a shipping line needs to break even will be slightly less than before.