Join our crew and become one of the 105,225 members that receive our newsletter.

Aerial top view of a containership underway

Shutterstock/Studio concept

Liner Shipping Reduces Sailing Speed Amid Environmental Concerns and Changing Market

Mike Schuler
Total Views: 1613
May 4, 2023

As the COVID-19 pandemic recedes, global shipping is experiencing a shift in operations.

According to the world’s largest shipping association, BIMCO, liner operators increased average sailing speeds by up to 4% during the pandemic to accommodate strong demand and port congestion. In contrast, the first quarter of 2023 saw a 4% year-over-year decrease in average sailing speeds, dropping to 13.8 knots, with projections for a 10% decline by 2025, BIMCO reports.

Changes in sailing speed can impact transport capacity, while also reducing both bunker oil consumption and greenhouse gas emissions. Slow steaming, initially introduced in response to the financial crisis, cuts sailing speed on mainline routes by up to 20%.

Although the traditional faster head-haul direction remains, average sailing speeds have significantly decreased. Larger ships on intercontinental routes continue to sail faster than smaller ships on intra-regional routes, but these trends may be shifting. In 2019, the largest ships sailed an average of 2.6 knots faster than the smallest ships, a difference that narrowed to 1.8 knots in Q1 2022 and further to 1.6 knots in Q1 2023, according to BIMCO. Consequently, the average sailing speed weighted by ships’ TEU capacity fell 6% year-over-year in Q1 2023, while the simple average sailing speed fell only 4% year-over-year, it said. This indicates a faster decrease in supply than in sailing speed.

The speed difference between head-haul and back-haul directions could also be reduced in the future. Compliance with the Energy Efficiency Existing Ship Index (EEXI) has led some ships to install Engine Power Limitations (EPL), reducing their top speeds. To maintain a buffer between top speed and scheduled speed, which allows for recovery from port or weather delays, the scheduled speed must be reduced. This will primarily affect the faster head-haul direction and narrow the difference in speed between directions, BIMCO says. The Carbon Intensity Indicator (CII) regulation and overall greenhouse gas emission targets may also drive further reductions in sailing speed.

While improved port congestion and slower return rates to the Asia-Pacific region may contribute to the lower average sailing speed, BIMCO believes this trend foreshadows the future of global shipping. As highlighted in its Container Market Overview & Outlook reports throughout 2022, sailing speeds could fall by 10% before 2025.

Unlock Exclusive Insights Today!

Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.

Sign Up
Back to Main
polygon icon polygon icon

Why Join the gCaptain Club?

Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.

Sign Up
close

JOIN OUR CREW

Maritime and offshore news trusted by our 105,225 members delivered daily straight to your inbox.

gCaptain’s full coverage of the maritime shipping industry, including containerships, tankers, dry bulk, LNG, breakbulk and more.