Ocean carriers are cracking the proverbial whip, forfeiting cost cutting through slow-steaming by instructing ship owners to speed up, VesselsValue has found.
According to Olivia Watkins, who oversaw a report on a survey conducted on increased liner speed on behalf of the data aggregator and appraiser, the development correlates with the 350% rise in charter rates for 8 500-TEU vessels since last June.
During the same period, the average speed of laden vessels increased by 5.5% to 14.76 knots or 27.317 kilometres per hour.
In some instances lines have sped up sailings by 8.5%.
The survey by VesselsValue found that cost saving and CO2 emission reduction through slow steaming was now taking a back seat to meeting berthing windows in tandem with weather conditions.
A concomitant trend, supply chain portal Loadstar reports, is the relaxation of steering regulations which makes it easier for captains to increase speed.
Watkins wrote that lines were currently not fazed by incurring costs through increasing vessel speed as they preferred to avoid additional charter expenses.
It also applies to ultra large container vessels that can save as much as $2 million on a Europe to Asia rotation through slow steaming.
The speed increases include backhaul journeys, VesselsValue has added, with lines eliminating empty sailing losses by avoiding deadheading of equipment through delayed berthing.