No Need for Speed

As 2011 comes to a close, many are breathing a sigh of relief and taking some much needed time to relax. This past year’s tanker market has shown us that even in the non-stop world of global marine transportation there is virtue in slowing down. As low freight rates have been accompanied by high oil prices, tanker owners trading in the spot market have been begrudgingly applying the majority of their voyage revenues towards exorbitant bunker bills. Many independent owners have pushed for lower voyage speeds. Adjusting and optimizing speed has a material impact on earnings as the relationship between speeds and bunker consumption is not linear. Download here