Slow steaming application for a 50,000dwt product tanker: Trade-off between optimal speed and freight rate

Abstract

Novel in the discussion of slow steaming is the type of vessel being  subjected (Product Tanker). Prior to this paper, the talk of slow steaming has always impinged on Container vessels. The shipping industry being a
truly global industry, although being passionate about her past (one in which the idea was to get cargo and goods delivered as fast as possible thus encouraging sailing at elevated speed) presents herself to be thoroughly excited about its present and future (one in which the idea is to go slower while checking the CO footprint of the vessel). Using a  50,000DWT Product Tanker, embarking on a round trip between the 2
seaports of Rotterdam and Singapore, slow steaming is shown to minimise fuel consumption during each vessels' voyage. In addition, emissions of Carbon dioxide (CO ), Oxides of Sulphur (SO ) and Oxides of 2 x Nitrogen (NO ) are depicted to reduce with progressive reduction in operating speed. Furthermore, slow x steaming is seen to reduce earnings as well as number of trips possible annually. It however leads to an improvement in both daily and annual revenue for this Ship. Comparing the impact of slow steaming, it was seen that this improvement in revenue becomes less pronounced for a higher freight rate as was the case at the time of writing (2012) and more pronounced for a lower freight rate as was the case five years prior to the completion of this paper (2007). The argument involving the interplay between speed reduction (optimal speed) and freight rate is equally an exciting variable/construct featuring in this discussion on slow
steaming.

Keywords: Slow steaming, freight rate, fuel consumption, anthropogenic emissions