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Asia's largest shipping line, Nippon Yusen K.K. (NYK Line), may decide to slow its container ships by a further 10 percent in a bid to reduce fuel consumption following the recent hike in bunker prices.

Speaking in an interview yesterday, Mikitoshi Kai, head of investor relations, said: “The rising price of oil is becoming a thorny issue,” adding that the shiping firm could lower the sailing speed of its vessels by up to 2 knots after having previously slowed its vessels from 24 knots to 20 knots.

Kai pointed out that a US$1 per tonne rise in the price of bunker fuel reduced the company's pretax profit by JPY 200 million (US$2.4 million) and that a 10 percent speed reduction would cut fuel costs by approximately 30 percent.

The company estimates that it will have reduced the costs of its container ship operations by at least JPY 15 billion (US$ 182 million) in the financial year ending this month, mainly due to its slow steaming policy.

The sailing speed of NYK Line container vessels is currently above the gobal average for this ship type. According to data compiled by Bloomberg the average container ship travels at 11.2 knots, 12 percent lower than two years ago.

Social Responsibility

NYK Line's slow steaming strategy forms part of the company's environmental policy, which last week saw the company selected for inclusion in the Silver Class of excellent companies by SAM Group Holding AG (SAM), which assesses socially responsible investment (SRI).

SAM is a global SRI-evaluation company that selects companies for inclusion in the Dow Jones Sustainability World Index (DJSI). Every year, SAM rates companies that conduct superior corporate social responsibility (CSR) activities and places the top companies in one of three classes: gold, silver, and bronze.

In 2011, of the leading 2,500 companies in 58 industries around the world, SAM first selected 409 companies, that have outstanding corporate sustainability in terms of management, society, environment, and other relevant issues. From the list, SAM then placed 272 of the companies (including 39 Japanese companies) into the three classes: 103 for the Gold Class, 92 for the Silver Class, and 77 for the Bronze Class. Of the eight companies selected from within the transport sector — three for the Gold Class and five for the Silver Class — NYK was the only Japanese company.

"NYK, as a good corporate citizen, will continue to take an active role in social issues, including the conservation of the environment, to contribute to the achievement of a better global society," the company said in a statement.