Surging bunker fuel prices have caused the world's third largest container carrier, the CMA CGM Group, to enforce speed reduction on its container ships plying the Asia-Europe routes.
The move to cut speeds will apply to all loops between Asia and Europe which has reportedly grown by an impressive 21% this year.
"We have taken the decision to slow down the speed of ships on services between Asia and Europe, because the situation is not sustainable, we are pushing to change the pattern of lines where we can, we have no choice," said CMA CGM director of Asia-Europe lines, Nicolas Sartini.
CMA CGM claims that bunker fuel costs have doubled "within the space of a year".
A check with Bunkerworld data proved that this is true, with the lowest price for key-grade 380 centistoke (cst) bunker fuel in the past 12 months at the bunkering hub of Singapore recorded on November 20, 2006 at $252 per metric tonne (pmt).
The highest price recorded in the past 12 months for 380 cst fuel was $514 on November 7 this year, Bunkerworld data showed.
According to Sartini, the cost of 10,000 mt of bunker fuel had shot up to $5 million on services between Asia and Europe.
CMA CGM says that shippers have backed the move after saying "reliability of services was more important than speed of services".
CMA CGM believes that such a speed reduction could cut costs by as much as 40% and also reduce emissions.
According to Sartini, "A North China-Europe service will be the first loop affected as from December 1 when we will add a ninth vessel on the loop."
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