Since the oil crisis of 1973, slow steaming has played an increasingly crucial role in the tanker market, in two major areas. Firstly it is a key determinant of tanker profitability and secondly, as a natural consequence, a means of absorption of surplus tonnage. But how much more scope is there for slow steaming, and are owners actually steaming at the right speeds? Should they, indeed, be steaming at all? This article goes some way to answering these questions by comparing the results of a unique Lloyd's Shipping Economist study of actual slow steaming behaviour with a theoretical analysis of optimum vessel speeds. The inescapable conclusions are that owners appear to be losing money by not steaming at their economically optimum speeds, but that nevertheless, slow steaming for turbine VLCCs and ULCCs can provide little extra elasticity in the rubber band that has stretched, over the last few years, to cover the gap between supply and demand. Although this analysis concentrates on the economics of slow steaming within the context of the tanker market many of the theoretical points can apply equally to other sectors of the shipping industry, such as the dry bulk carrier sector or even the unitised sector.

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  • Corporate Authors:

    Lloyd's of London Press Limited

    Sheepen Road
    Colchester, Essex CO3 3LP,   England 
  • Authors:
    • Blackley, N
  • Publication Date: 1981-3

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Filing Info

  • Accession Number: 00331950
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jun 12 1981 12:00AM