Slower containerships prompting industry re-think

Average containership speeds plummeted 7.4 percent year-on-year in December 2010, according to Bloomberg tracking data.

Averaging 11.44 knots over the period, lower speeds save fuel and increase demand for vessels, both beneficial to owners. With trade expected to grow only weakly in 2011, and oil prices set to rise even further, Bloomberg believes owners have little incentive to increase average speeds.

The situation may also provoke a turnaround in the relatively low number of newbuilding orders, as lower speeds have effectively reduced global capacity by almost five percent according to Alphaliner, tempering fears of oversupply. (source: BairdMaritime)

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