Speed reduction of up to -30% will lead to net cost savings for shipping industry and states in the majority of cases.
The highest savings are to be achieved especially when fuel prices are high and shipowners’ earnings are low, including on long journeys (30,000 nautical miles).
These findings are applicable to long-distance trades like iron ore exports from Brazil to China.
Savings will diminish or become negative when fuel prices are very low or if ships slow down too much (beyond -30%). But even in that case the negative cost impacts will likely be insignificant.
This study looks only at bulk carriers only, but the results are likely hold true for most other ship types too, which are engaged in comparable trades.