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24-09-2015

Mega Boxship Fuel Savings Due to Slow Steaming, Not Size

The OECD said that more than half of the fuel savings generated from larger ship were due to design changes for slower speeds.

A report by the Organisation for Economic Co-operation and Development (OECD) suggests fuel savings among mega-boxships come more from slow-steaming and less from its larger vessel size, Reuters reports.\u00a0

Carrier lines making orders for larger ships to cut down on per-unit costs have long touted the fuel efficiency of using larger containerships.\u00a0

However, according to the\u00a0OECD\u00a0report, "between 55 and 63 percent (at least) of the savings per TEU when upgrading the vessel size from an early 15,000 TEU design to a modern 19,000 TEU design are actually attributable to the layout for lower operation speeds."

Newbuilds these days are increasingly having slow-steaming built into the ship design, reports say, which make the difference for ships beyond a certain size. \u00a0

"Cost savings are decreasing as ships become bigger," the OECD said.

"A large share of the cost savings were achieved by ship upsizing to 5,000 TEU, which more than halved the unit costs per TEU, but the cost savings beyond that capacity are much smaller."

Nevertheless, the organisation said that mega-containerships were "astonishingly fuel efficient," generating more fuel savings than even a 16,000 TEU carrier.\u00a0

Meanwhile, the upgrade to larger ship size is also\u00a0increasing landside costs by up to $400 million per year, with factors such as new equipment, dredging costs and port infrastructure having been taken into consideration. \u00a0

Earlier this year, a unit of the OECD also clashed with the World Shipping Council (WSC) over differing opinions of mega-containerships.\u00a0


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