Typically, a ship burning 1 mt of fuel oil produces a little more than 3 mt of CO2, according to various studies quoted by market participants. If the same trip is done at a laden speed of 14 knots and ballast at 15 knots, the duration of the trip falls to around 79 days, while the total fuel oil consumed increases to 4,298 tonnes at 62t/day. Market participants, however, said the relationship is not exactly linear over the whole range of speeds a ship can technically run.Īs an example, a Capesize ship performing a round trip carrying iron ore from Tubarao, Brazil to Qingdao, China, having ballasted from China takes about 90 days and burns 3,467 tonnest of fuel oil based on 43t/d at a laden eco speed of 12 knots and ballast speed of 13 knots. Capesize ships consume close to 10mt extra per 1 knot gain in speed. As per industry estimates, fuel consumption in the sub-Capesize segments surge by around 4-5mt/d on average when speed increases by about 1 knot. While vessel speed is influenced by market forces and economic compulsions, ships consume more bunker fuel at elevated speeds and emit more carbon. The trend was similar on the ballast leg, with the average reaching 11.95 knots in June, the highest since November 2012, and up 4.25% from 11.46 knots in February 2020. According to data from ship valuation provider VesselsValue, the average laden speed in August was 11.62 knots, the highest since January 2012, and up 8% from 10.75 knots in February 2020. It’s a fact that ship emissions are reliant on vessel speed and the current firm market has emboldened owners to sail faster. The time charter rates across all dry bulk vessel segments have risen sharply in 2021 compared with weak freight levels in early 2020, when global economies were grappling to control the COVID-19 spread. The multi-year record dry bulk freight rates have forced the average sailing speed of these ships to a decade high. Bumper earnings from operating dry bulk ships hauling commodities such as iron ore, coal, and grains, have incentivised shipowners to speed up their vessels, which in turn is possibly amplifying carbon emissions from this segment according to analysts S&P Global Platts.

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