The Viability of Slow Steaming From a Supply Chain Perspective Through a Break-even Bunker Price Analysis

Over the years the viability of slow steaming has been researched mainly from a microeconomic perspective. In fact, the vast majority of researchers have been focused mainly on the consequences that slow steaming has to the two most affected actors of the transport supply chain, shippers/consignees and carriers. On the other hand, studies that focus on the viability of slow steaming from a macroeconomic perspective are scarce significantly. Taking this opportunity, the current research proves the viability of slow steaming nowadays from a supply chain perspective, by implementing a break-even bunker price analysis. More specifically, this research focuses on the costs and benefits of both actors of the supply chain at first, while on the later parts compares the current bunker price with the break-even point (where slow steaming’s effect on carriers is equals to the effect on shippers). To implement the calculation model, we focus on five main trading routes around the world, including some not yet researched regions, such as Africa and Oceania. What is more, the main model is being implemented in a speed sample of 15 to 25 knots of sailing speed of five different vessels that differ mainly in carrying capacity of TEUs.