Container ships are moving at all time slow speeds

Container ships have been moving at all-time low speeds in 1Q 2023 to face “structural overcapacity” and high fuel prices, maritime and shipping research Clarksons said, according to Splash247. Average sailing speeds have slowed to 13.8 knots, down 4% y-o-y, with the possibility that this could further decrease to 10% by 2025, according to analysis from shipping association BIMCO. The slowing of services is a result of container ships absorbing capacity that would otherwise be a surplus as well as new environmental regulations and carbon taxes which increase fuel prices, Alphaliner analyst Jan Tiedemann told the news outlet. The transition to new and more expensive fuels such as LNG, ammonia, and methanol also will favor slow speeds, Tiedmann added.