ITF Unions in Maersk
Maersk Line expecting growth of 7-8% in 2008
25 July 2008
Cutting the speed of vessels and introduction of a fuel surcharge has offset the cost of rising fuel prices for Maersk Line.
In an interview with Reuters, the line’s Asia Pacific Chief Jesper Praestensgaard predicts a market growth of 7-8% in container shipping for this year. The first three months saw a loss of US$ 47m, due in part to a 65% rise in fuel prices. Parent company AP Moller made profits of US$ 1.05bn during this period.
Maersk and a number of operators are now introducing ‘slow steaming’ to reduce CO2 emissions and offset rising fuel prices. Sailing a vessel at less than its typical service speed in the case of a large container ship might signify running at 20 knots instead of 24 knots.
The risk management organisation Lloyd's Register is carrying out a study of the implications of slow steaming. It will investigate whether slow steaming cuts fuel consumption and overall emissions. The study will also take into consideration the environmental cost of constructing new lower powered ships.
The North of England P&I Club warns though that chartered ships slowing down to cut costs may risk being sued for breach of charter party. The Singapore Business Times quoted the head of loss prevention Tony Baker saying: “Many ship operators are considering whether to adopt a slow steaming policy. However, before making the decision to slow steam, owners and charterers alike need to ensure their position is protected - both under the terms of the relevant charter parties and under the bills of lading.”
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