The latest engine and hull designs for container ships are so fuel-efficient and save so much money that shipowners are willing to pay a hefty premium over the price for standard vessels for the so-called eco-ship, according to an analysis BIMCO developed for The Journal of Commerce.

“The fuel savings make an eco-container ship so profitable that the net present value of the investment goes up by $20.8 million,” said Peter Sand, chief shipping analyst of the Copenhagen-based shipowners association. “In other words, a shipowner will pay up to 51 percent more for an eco-container ship if a standard 4,000-TEU container ship can be purchased at $40.5 million.”

BIMCO originally published the analysis for eco-tankers, but re-ran its calculations for the JOC because container ships travel at a higher speed, meaning that the daily fuel consumption is higher than comparable bulk and tanker vessels.

Shipowners are willing to pay the premium because, in the example of a container ship with a capacity of 4,000 TEUs, an eco-container ship that burns 75 tons of bunker fuel per day at a service speed of 20 knots can save $2 million a year on fuel compared to a standard ship design.

“With a fuel price of $651 per ton, a 4,000-TEU ship will save $5,493 per day — or as much as $2 million per year,” Sand said. “This means that an eco-shipowner in the time-charter market will potentially be able to raise the rate by 59 percent (the full fuel-saving premium) as compared to a standard vessel at today’s market where a 4,000-TEU ship can be chartered for $10,500 per day.”

But BIMCO’s analysis comes with a caveat. “Even if you are able to acquire 4,000-TEU eco-container ships at a price of $40.5 million and if you are able to obtain the entire fuel-savings premium from charterers on top of a standard ship (non-eco) time-charter rate, an eco-container ship is not quite profitable in today’s market at a new-present-value loss of $7.8 million,” Sand said.

The math changes when charter rates rise. “However, should the non-eco time-charter rate go up to a level beyond $2,560 per day, an owner of an eco-vessel will make money under the assumptions of this model. At a time-charter rate of $10,500 per day, the fuel price needs to increase to $895 per ton before the eco-vessel is potentially able to charge a fuel-savings premium high enough to make the investment profitable,” Sand said in his analysis.

--------------------------------------------------------------------------------------------------------------------------------------------------

International shipping, freight forwarders in California, maritime, ocean shipping, global logistics

ETC Intl. Freight System is a licensed freight forwarder, NVOCC bonded & a California Corporation since 1984. Whether, you seek air or ocean freight & to our broad customer base, we offer warehousing, distribution, packing, crating, trucking, customhouse brokerage & inland delivery/pickup services. For more information or pricing through the web, please visit us at www.etcinternational.com. Email: Sales@etcinternational.com. Toll free 1-800-383-3157

Commercial / Industrial Shipping

Since 1984, customers with commercial or industrial shipments have used our domestic & international freight network.  Whether their oversized shipments moved from an inland point over the road with permits and escorts to a port / airport, or used our trucking network for a full or partial truck load, ETC International Freight System accommodated that leg along with the international shipping & overseas clearance with door deliveries. In addition to our regular commercial shipments of 100 kilos or 20,000 kilos, we have shipped:

• An entire automotive wheel making factory to Tatabanya, Hungary
• Earth Moving Equipments to the Middle-East occupying half a vessel
• Water irrigation system and plastic forming machineries moving on flat racks
• Oversized vehicles
• Large volumes of seeds moving at once in many ocean container loads under the same booking having to secure & deliver containers 24/7 to meet the mission.

 

A small crew of enablers & dedicated professionals can take pride in delivering excellence.

 

Please call us at 1-800-383-3157

Industrialists with international import or export shipments do not let thir shipping to chance. Your experienced international freight forwarder in invaluable. Contact us at www.etcinternational.com or email us at Sales@etcinternational.com