Slow steaming impacts logistics industry - Turners

Slow steaming by shipping companies to cut running costs is impacting negatively on the logistics industry as businesses are forced to adapt to longer lead times for cargo arriving by sea. That’s according to Samson Nip, Turners Shipping route development manager – Far East, who believes this could have a negative impact on inventory levels and lead to both profit and cash flow concerns. Ships which generally cruise at around 22 knots have reduced their speed and now average 18 knots on a voyage between ports in the East and South Africa, says Nip. “While this reduction in speed can save up to 20% on the fuel bill, it also means that instead of the usual two-week voyage between ports, ships are now spending more time at sea, delaying the delivery of freight quite substantially. “We have had to advise our customers to change their ordering procedures to accommodate the longer lead times,” says Nip. “The price of bunker fuel, has been rising steeply, and has increased by 600% over the last ten years,” he added. At a time when industries are called on to reduce greenhouse-gas emissions some countries are imposing taxes on emissions, while others are putting measures in place to reduce emissions. Effective this month, ships in North American waters are required to burn lowsulphur oil, which costs 60% more than regular bunker fuel. Nip says that this is bound to have an effect on the cost of shipping cargo to and from North America.