ShippingWatch

Will lower oil prices make carriers ditch slow-steaming?

Slow-steaming has been a much-used tool for container carriers during the crisis, but could the declining prices on crude as well as bunker oil make carriers speed up, asks Drewry in a new analysis.

Photo: Hanjin

The massive decline in the crude oil price is in some ways good news for carriers, who will at least be able to save money on their biggest expense - bunker. The question the becomes whether the lower oil prices will make carriers speed up their container ships again, thus ditching slow-steaming, which has otherwise been a good tool in a time with low rates and far too many ships, says analysts Drewry in a new analysis.

In the past three years the price for a barrel of crude has been at a steady average of around USD 110 per barrel. But the price of oil has seen a constant decline since then, especially in recent months as the price has dropped significantly to currently around USD 85 per barrel, due to the booming US shale production, reduced global demand and financial unrest.

Already a subscriber? Log in.

Read the whole article

Get access for 14 days for free.
No credit card is needed, and you will not be automatically signed up for a paid subscription after the free trial.

  • Access all locked articles
  • Receive our daily newsletters
  • Access our app
An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from ShippingWatch

ECSA's new secretary general balances on a razor's edge

ECSA’s newly appointed secretary general, Sotirs Raptis, has taken up the helm of an organization criticized by its own members for being invisible. In an interview with ShippingWatch, Raptis explains how he intends to alter that image.

Further reading

Related articles

Latest news

See all jobs