ShippingWatch

Ultrabulk: Oil slide kindles overcapacity problems

More ships are now increasing their speed due to the low oil price, says Per Lange, CEO of Ultrabulk. And the oil slide could potentially extend the lifespan of older vessels, which is bad news for the overcapacity, he tells ShippingWatch.

While numerous industry players point to the declining oil price's positive impact on carriers' fuel costs, another trend is also starting to emerge. A negative development that has also been mentioned by analysts as a potential risk of the lower price - namely that ships are increasing their speed.

According to Per Lange, CEO of dry bulk operator Ultrabulk, an increasing number of ships are sailing faster, and the bulk operator thus sees the declining oil price as a negative development, he tells ShippingWatch:

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Several factors explain the plummeting dry bulk rates

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