Surging charter rates make slow steaming impractical
Ship operators are likely to remain cautious about slow steaming on the grounds that it could erode their profits, according to a ship manager.
“Operators pay high charter rates by the day, so don't expect them to sail any slower than the maximum speed,” Capt. Sanjeev Sharma, general manager of Neom Maritime (Singapore) Pte Ltd, told SustainableShipping.
“In business terms, the main aim is to get cargo from point A to B in the fastest time possible, and by doing that you will earn maximum profits,” he said.
Sharma was speaking on the sidelines of the SustainableShipping Forum in Singapore last week.
“For spot charters it is the owners, not the charterers, who pay for the bun kers, so why would they (charterers) actively save fuel?” added Sharma, whose company specializes in bulk carriers.
“Even for operators on long-term charters, who have to bear their own bunker costs, finishing up a route fast means being able to embark on another."
Sharma made those comments in response to several presentations at the forum that promoted slow steaming as a means to cut fuel usage and emissions.
When asked about Maersk's apparent success with slow steaming, Sharma said Maersk "can afford it, because they own their own vessels and they own many vessels.”