globalconsumption

Shipowners Seek to Slow Services to Meet Emissions Limits

Shipowners Seek to Slow Services to Meet Emissions Limits 60 60 La Chang

Looming new environmental regulations are triggering sharp divisions in the shipping industry between vessel operators investing billions of dollars to reduce emissions and others who want to stave off the financial impact by simply slowing down ships.

More than 100 shipowners, including some big Greek and German charter businesses, have signed a letter to the International Maritime Organization, an arm of the United Nations that works as the global marine regulator, calling for slower sailing speeds to cut greenhouse gas emissions.

If adopted, the measure could ripple across international supply chains, with products taking more time to be delivered and cargo owners paying more for transport costs because of the longer sailings.

Ship Orders Fall to Lowest Level in 15 Years

Ship Orders Fall to Lowest Level in 15 Years La Chang

Ship orders world-wide have shrunk to the lowest level in 15 years. Indeed,  vessel owners are struggling with excess capacity that has kept freight rates well below break-even levels.

According to marine data provider Clarksons PLC report released Friday, there were 3,200 vessels of a combined 81 million gross tons ordered globally in the first quarter, the lowest figure since 2004.

“The global order book has declined to its lowest level since the early stages of the shipbuilding boom,” George Warner of Clarksons Research said.

Crude tankers and bulkers made up around two thirds of all orders a decade ago, but this year the share has dropped to 42% as volatility in commodity markets and changes in global energy consumption have triggered shifts in ocean-going trade.