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            september 20, 2019

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Ship speed limits sly way to boost rates


Singapore's Splash 247 shipping news portal suspects support for speed limits for ships has less to do with "decarbonisation" and more to do with creating a shortage to boost rates.
"By being forced to go slow, capacity will be soaked up, rates will rise. This is not a solution to today's decarbonisation drive," said the Splash editorial.
"It is however a very handy hedge for signatories concerned about rising fuel prices come the start of the global sulphur cap next year."
Splash denied claims that ships are speeding up again as global demand recovers.
"No, they are not. That is a fabrication. Data from Clarksons Research sent to Splash shows that that on a general level speeds have come down in tankers and bulkers by 15-20 per cent since 2008 and for containers around 25 per cent.
"Multiple other data providers also show that the average speed for most ship types has slowed down over the past year.
Said Danish Shipping association chief Anne Steffensen: "A goal-based approach gives a level playing field and drives innovation towards new fuel types whereas speed limits will not solve the problem and risk being a sleeping pill."
Her goal-based approach seems to refer to a non-specific proposal put forward to the IMO that promotes incentives-driven, goal-based approach to advance decarbonisation.

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