Speed Indicator
VESSELINDEX® Speed Indicator measures freight market momentum by showing the economically optimal operating speed of the global dry bulk fleet under current freight and fuel conditions.
Published weekly for Handysize, Supramax, Panamax, and Capesize vessels, it provides insight into dry bulk supply by estimating how much additional transport capacity can be released through speed changes.
Weekly Update
VESSELINDEX® Speed Indicator is a tangible indicator on the balance between demand and supply in the dry bulk industry.
- It provides an aggregated view on the optimum operation speed under the prevailing freight & fuel market conditions.
- Shipowners, analysts and other stakeholders will get a tangible measure on how slow “slowsteaming” is.
- It indirectly measures the latent capacity in the market (i.e. supply of dry bulk tonnage and/or transportation work).
- It provides an aggregated view on the optimum operation speed under the prevailing freight & fuel market conditions.
- Shipowners, analysts and other stakeholders will get a tangible measure on how slow “slowsteaming” is.
- It indirectly measures the latent capacity in the market (i.e. supply of dry bulk tonnage and/or transportation work).
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How it works
Depending on the market environment, each individual vessel will have economic incentive to trade at different speeds depending on the relationship between deadweight, draft, hold capacity and speed/consumption.
In the VESSELINDEX® context, the optimal speed is the operational speed at which a given vessel yields its maximum index/return under a given market scenario.
The Speed Indicator uses a representative basket of standard dry bulk designs across building country, size and age profile. The basket encompasses approximately 40% of the global dry bulk fleet.
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