Alphaliner: Low oil price could worsen overcapacity

The price on IFO 380 bunker has gone down 35 percent since 2012. As such, the massive saving carriers can achieve by reducing their speed has almost disappeared.
BY OLE ANDERSEN

The container carriers have achieved significant cost reductions in recent years by lowering ships' speed in order to save money on their towering fuel expenses. Meanwhile, the use of slow steaming has - according to analyst agency Alphaliner - secured work for around 7.1 percent of the global container fleet, which has thus also helped lower the massive overcapacity of ships.

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