Maersk says slow steaming here to stay

Slow steaming by container ships, introduced during the recession to absorb capacity and cut costs, is here to stay, according to Maersk Line, the world's largest ocean carrier.

Even as the global economy recovers slow steaming "remains a win-win-win situation," said Maersk Line CEO Eivind Kolding.

"It is better for our customers, better for the environment, and better for our business," Kolding said.

Maersk's management liner board has agreed to continue slow steaming because it will improve scheduled reliability, cap fuel costs and reduce the carrier's carbon foot print.

The cost savings also will enable Maersk to increase spending on innovation and improved service, including enhanced efficiency at its terminals, Kolding said.

"While some customers have complained about longer inventory time -- in essence, with Maersk Line ships as floating warehouses -- the analysis is that slow steaming helps prevent bottlenecks on terminals."

A ship that reduces its speed by 20 percent will use 40 percent less fuel, thereby reducing CO2 emissions, Maersk said in a briefing on slow steaming.

To maintain the same service frequency and compensate for lower average speed, one to two extra vessels are added per route or string.

Despite the extra ships, Maersk has cut its CO2 emissions by around 7 percent per container transported over the past 18 months.

Maersk argues that schedule reliability improves because slow speed allows ships to continuously adjust speed in order to deliver cargo exactly on time.

The carrier said the concept of slow steaming was originally a hard sell to engine manufacturers. It took off in 2007 and was a key factor in Maersk cutting its CO2 emissions 12.5 percent per container from 2007 to 2009.

Maersk said its goal is to reduce CO2 emissions by 25 percent in 2020. (source: Bruce Barnard, The Journal of Commerce)

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