Pictured: Nicole Howarth
A Shropshire freight company is urging exporters to plan early
for possible delays in deliveries because of the rising cost of
oil.
Ships deliberately cutting back their speeds, known as "slow
steaming", to conserve fuel is a practice which Telford-based
Global Freight believes could affect businesses relying on overseas
trade.
Managing director Nicole Howarth said some shipping lines, like
leading Danish company Maersk, were refusing to cut sailing speed
despite a 15 per hike in oil prices since the beginning of
2011.
But others, including Asia's largest container line Nippon Yusen
KK, were continuing to slow their vessels by an much as ten per
cent.
She said: "Transit times are varying to different destinations
due to the slow steaming of vessels, sometimes this can be because
of congestion at ports but also the rising cost of fuel means ships
consume less if slow steaming. Unrest in the Middle East is
affecting oil prices and with the crisis situation affecting Libya
and other oil producing countries in the region, this is unlikely
to change any time soon."
Global Freight's comments came as a new survey revealed that
slow-steaming can increase delivery times by 30 per cent of more,
with shippers wanting ocean carriers to reduce freight rates as a
result of the savings made by slow steaming.
Maersk Line has said it will pass on fuel costs to clients and
consider cutting speeds only under "extreme" conditions .
Nicole said container vessels were travelling at an average of
14 knots although they are capable of up to 25 knots. The biggest
container ships use about 300 metric tons of fuel a day at top
speed and sailing 10 per cent slower cuts fuel use by about 27 per
cent, she added.
"There are other reasons for slow steaming and delayed shipment
deliveries. One is the impact on the climate, the slower a ship
steams the more its carbon emissions are reduced.
"Some shipments in parts of the globe where pirates are active
can also be delayed. The vessels tend to sail closer to the
mainland to escape pirates further out to sea, especially so in the
Gulf of Aden, which separates Yemen and Somali, where they request
an armed escort as it's an area rife with pirate activity."
Nicole said Global Freight is monitoring the situation and is
able to advise clients on timings for deliveries, with a recent
shipment to Busan taking about five days longer to reach the
destination that the usual shipping time.
"Of course, there can be situations which are unforeseen, but
companies should be aware of issues which can affect shipment
dates. We'd be happy to speak to any businesses concerned about
getting their vital deliveries where they need to be intact and on
time."
Companies who would like to know more about shipping overseas
can contact Global Freight on 01952 270699 or email
sales@global-freight.co.uk