Analysis of Slow Steaming of Ship and Its Impacts

Abstract

Global trade heavily depends on shipping industry. Growth in seaborne trade causes the increase in fuel consumption and hence higher emissions which are directly related to the issues of global warming. Now, the world is also facing a drastic increase in fuel prices as a consequence of geopolitical conflict between Russia and Ukraine. One of the most effective ways to solve these problems in the maritime industry is to use the slow steaming method which is very cost-effective to implement. Slow steaming involves purposefully lowering ship speed to reduce bunker fuel consumption and also results in lower emissions. Therefore, this method is expected to bring a win-win outcome in the face of environmental damage resulted from GHG emissions and soaring fuel prices. This paper seeks to ascertain whether slow steaming can be used to compensate for the higher expenses associated with using cleaner fuels to comply with the stricter environmental regulations set out by International Maritime Organization. The impacts of using this method were evaluated by three points of view – economic, technical and legal. The results show that slow steaming can reduce the increasing bunker cost for using MGO instead of HFO but still cannot fully compensate for it.