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Costs Rise News

31 Aug 2023

Anchor Handler Construction: What to Expect as Floating Wind Picks Up

Maersk Supply Service used the Maersk Mariner to install six mooring lines (hybrid lines of chain and fiber rope) and six drag anchors for the DemoSATH floating wind project. (Photo: Maersk Supply Service)

A fleet of newbuild specialized anchor handlers will be required to help build up the emerging floating offshore wind industry. But since the industry is still in its early days, many unknowns have made it difficult for shipyards and their partners to gear up to build this fleet. This article explores complex market demand and technical drivers that help give a better understanding of anchor handler requirements for floating offshore wind.Floating wind is an emerging technology currently being tested in small scale demonstration and pilot projects…

19 Dec 2022

How Climate Change is Altering River Shipping

© Rob Sheppard/Danita Delimont / Adobe Stock

Rivers are critical corridors that connect cities and ecosystems alike. When drought develops, water levels fall, making river navigation harder and more expensive.In 2022, water levels in some of the world’s largest rivers, including the Rhine in Europe and the Yangtze in China, fell to historically low levels. The Mississippi River fell so low in Memphis, Tennessee, in mid-October that barges were unable to float, requiring dredging and special water releases from upstream reservoirs to keep channels navigable.Conditions on the lower Mississippi may be easing somewhat…

25 Jan 2021

Why Are Pirates Attacking Ships in the Gulf of Guinea?

© Venera / Adobe Stock

Pirates are stepping up attacks on ships in West Africa’s Gulf of Guinea, defying regional navies. On Saturday, pirates off Nigeria kidnapped 15 sailors from a Turkish container ship and killed one.Pirates in the Gulf of Guinea kidnapped 130 seafarers in 22 separate incidents last year, accounting for all but five of those seized at sea worldwide.Who are the pirates and why are the attacking?The pirates come from Nigeria’s turbulent Niger Delta, experts say. The region produces the bulk of the nation’s petroleum…

14 Feb 2020

Coronavirus Leaves China-bound Tankers Stranded

© Riekelt / Adobe Stock

The coronavirus's effect on energy markets is worsening, as the sharp fall in demand in China, the world's largest importer of crude, is stranding oil cargoes off the country's coast and prompting shippers to seek out other Asian destinations.More than 1,360 people have died from the coronavirus in China, which has disrupted the world's second largest economy and shaken energy markets, with international benchmark Brent crude oil down 15% since the beginning of the year.Major international energy forecasters expect demand to fall in this quarter…

22 Nov 2018

Ship Operating Costs Rise for Second Successive Year: Drewry

As the cost inflation is set to accelerate on higher insurance premiums, average vessel operating costs rose modestly for the second year in succession following two years of marked declines, according to the latest report published by global shipping consultancy Drewry.The report titled 'Ship Operating Costs Annual Review and Forecast 2018/19' said that typical ship operating costs accelerated moderately in 2018 as the uncertain recovery in freight markets across most cargo sectors gained momentum.Opex costs are heavily linked to developments in the wider shipping market as some costs, such as insurance, are connected to asset values…

03 Jul 2018

Hapag-Lloyd AG: Bunker Costs Rise, Earnings Sink

© aomvector/AdobeStock

Maritime companies under market pressure have another negative force with which to deal: Steadily rising bunnker costs in tandem with oil's nearly year-long rise. According to Moody's, Hapag-Lloyd on June 29 revised its outlook for EBIT and EBITDA closer to the actual results for 2017 whereas previously the company expected both of those measures to increase. While Moody's noted that the weaker operating performance is a credit negative, the ratings for Hapag-Lloyd are unaffected.Hapag-Lloyd now expects to generate a full-year EBITDA in the range of €900 - €1…

20 Mar 2018

Corrosion Control and the Autonomous Ship

(Photo Source: ThinkStock)

The remarkable success of autonomous and remotely-controlled vehicles on land and in the air and the interest in this technology being shown within maritime circles suggests that it is only a matter of time before autonomous ships are deployed at sea. Although the fuel costs represent, by far, the majority of shipping costs compared to onboard crews, there are yet substantial benefits to be reaped from autonomous ships. The potential economic benefits are too great to ignore this emerging technology.

27 Oct 2017

Ship Operating Costs to Increase for 2017 and 2018

Vessel operating costs are expected to rise in both 2017 and 2018, according to Moore Stephens' survey. Repairs & maintenance and spares are the cost categories which are likely to increase most significantly in each of the two years. The survey is based on responses from key players in the international shipping industry, predominantly shipowners and managers in Europe and Asia. Those responses revealed that vessel operating costs are likely to rise by 2.1% in 2017 and by 2.4% in 2018. The cost of repairs & maintenance is expected to increase by 2.0% in both 2017 and 2018, while expenditure on spares is predicted to rise by 2.0% in 2017 and by 1.9% in 2018. Drydocking expenditure, meanwhile, is expected to increase by 1.7% and 1.8% in 2017 and 2018 respectively.

26 Oct 2017

Vessel Operating Costs on the Rise -Moore Stephens

© Big Face / Adobe Stock

Vessel operating costs are expected to rise in both 2017 and 2018, according to the latest survey by international account and shipping consultant Moore Stephens. Repairs and maintenance and spares are the cost categories which are likely to increase most significantly in each of the two years. The survey is based on responses from key players in the international shipping industry, predominantly shipowners and managers in Europe and Asia. Those responses revealed that vessel operating costs are likely to rise by 2.1 percent in 2017 and by 2.4 percent in 2018.

26 Aug 2015

The FPSO Cost Discussion

Packed with “optimized technology”: The ENI FPSO at tow-out from its Korean yard.  Credit: Courtesy Eni Norge

At first, the oil-price and project-cancellation forecasts had hushed the audience at FPSO Europe Congress 2015. Speaker No. 1 had delegates looking at each other for signs of fear. Then, rival contractors — veterans of many a bitter tender — piled on the logic of their own methods for cost-cutting in floating production storage and offloading projects. Rather than stamp out competing arguments, a relentless costs discussion had another, unexpected effect. It lifted the gloom and crystallized the opportunity at hand to engineer FPSO demand.

27 Mar 2015

Advanced Drillships a Burden for Owners as Business Slows

Not so long ago, advanced drillships costing more than half a billion dollars each and capable of operating in ever-deeper waters practically guaranteed big profits for oil-rig operators. Now, with oil prices down by half since June, many have become a burden on their owners as drilling activity slows. Drillship operators face a more brutal hit to margins than they did after the oil-price crash of 2008 because of the huge cost of maintaining the more than $10 billion worth of state-of-the-art vessels that have been idled at sea, analysts say. Noble Corp Plc, Ensco Plc and Transocean Ltd are among companies that have invested in advanced rigs which, unlike older jack-up rigs that attach to the ocean floor, rely on dynamic positioning systems using thrusters to keep them in position.

03 Nov 2014

Shipbuilding: COSCO Warns of Struggle if Credit Tightens

COSCO Corp (Singapore) , part of one of China's largest shipbuilding groups, warned that its customers could struggle to pay their bills as funding costs rise, after posting sales on credit at their highest level in 11 years. The Singapore-listed subsidiary of Chinese state-owned maritime conglomerate China Ocean Shipping (Group) Company said trade and other receivables -- sales for which the company has not received cash payment -- rose more than 60 percent so far this year to S$4.7 billion ($3.7 billion). Reporting an almost 70 percent jump in third-quarter profit on Monday, the company said higher receivables reflected a rise in construction contracts in its marine engineering segment. But the company said tougher credit conditions would hurt.

14 May 2014

US Trucks Revved Up, Capacity Crisis Revealed

As a polar vortex snarled North America's railroads and upended freight flows this winter, everyone from agricultural giant Cargill to Dow Chemical rushed to secure the next-best form of hauling goods: trucks. In what trucking executives described as an unprecedented bidding frenzy, spot market rates surged by as much as 20 percent to record highs in the first three months of 2014 as shippers sought to minimize sometimes weeks-long delays in rail service. "We've received letters from CEOs from major chemical companies asking us if we can do more," said Bill Marchbank, vice president of operations at Houston-based Trimac Transportation, a leading bulk shipper of liquid chemicals and industrial minerals.

28 Apr 2014

National Oilwell Expects Offshore Rig Demand to Slow

courtesy of National Oilwell Varco

National Oilwell Varco Inc, the largest U.S. oilfield equipment provider, said orders fell by nearly a quarter in the first quarter and it expects demand for new offshore rigs to slow during the second half of the year. The company's shares fell about 7 percent. Demand for contract drilling is softening as rigs ordered during boom times are being delivered now. Large oil companies are tightening spending after a decade of double-digit increase in budgets as oil prices stagnate and project costs rise.

23 Jan 2014

Ship Operating Costs 2013 Held Steady Despite the Odds ...

Calculator credit Dominic Alves CCL

Judging by the findings of Drewry Maritime Research’s latest 'Ship Operating Costs Annual Review and Forecast' , ship operators were able to keep increases in operating costs in 2013 quite low – with increases in total costs typically ranging between 1.0-2.5% depending on the sector in question – despite 2013 being another difficult year for most. Commenting on the latest findings Nigel Gardiner, Managing Director, stated:

“Poor freight markets have forced ship operators to keep…

26 Sep 2012

Shipping Operating Costs Rise 2.1%

Richard Greiner, partner, Moore Stephens

The findings are set out in OpCost 2012, Moore Stephens’ unique ship operating costs benchmarking tool, which reveals that total operating costs for the three main tonnage sectors covered – bulkers, tankers and container ships – were all up in 2011, the financial year covered by the survey. Both the bulker and tanker indices increased by 3 index points (or 1.7 per cent) on a year-on-year basis, while the container ship index (with a 2002 base year, as opposed to 2000 for the other two vessel classes) was up 5 index points, or 3.1 per cent.

05 Apr 2012

Huntington Risks Losing $194 Million on Carrier’s Overrun

Huntington Ingalls Industries Inc. stands to loss as much as $194.3 million, more than 40 percent of its potential fee, under the Navy’s latest estimate of overruns for the USS Gerald R. Ford aircraft carrier, according to Bloomberg. Construction of the Ford, the Navy’s most expensive warship, is likely to exceed by $884 million the shipbuilder’s target contract cost of about $5.2 billion for detailed design and construction, according to Navy officials and the service’s Selected Acquisition Report, obtained after it was delivered to Congress on March 29. The Ford is intended to be the first in a $40 billion, three-ship class of carriers. Its rising costs have brought questions from Republican Senator John McCain about the Navy program and the shipbuilder’s performance.

12 Jul 2011

Graig Order Launches Generation of "Super Feeders"

The Cardiff-based Graig Group has ordered a series of up to 26 fuel-efficient new generation MARLIN 2000 Blue design container feeders to be built at the major Jin Hai shipyard complex in China. The first two vessels are scheduled for delivery in August and September 2013 with subsequent vessels to be delivered in pairs every two and half months. Discussions on charters for the vessels are advanced with a number of global liner companies. Hugh Williams, CEO, Graig, says, “This series responds to the industry’s needs.

30 Nov 2001

Moore Stephens Focuses on Running Costs

Moore Stephens says shipowners have seen crew costs rise slightly and insurance costs fall dramatically over the past year. shows handysize bulk carrier crew costs up 6.9 percent, while insurance costs for the same ships fell 18 percent. Richard Greiner, director of research for Moore Stephens, says, "This is our second OpCost report, and it gives a very clear picture of how much shipowners and managers are spending, and where their money is going. OpCost is a vessel operating cost benchmarking tool exclusive to Moore Stephens. It allows owners, managers, lawyers and financiers to benchmark vessel-operating costs against a sample of actual vessels operating worldwide. sizes of tanker, dry cargo ships, container vessels, reefers and Ro/Ros. fees and sundries. annual report.

09 Aug 2004

Oil Spill Clean-up Continues in Texas

The Coast Guard established a safety zone on the Neches River from just north of the DuPont plant to the Veteran’s bridge. No recreational boaters will be allowed into the safety zone until more of the oil has been removed. Both the Coast Guard and Texas Parks and Wildlife Department will be patrolling the area to ensure that recreational boaters observe the parameters set by the safety zone. Since the Neches River’s opening at approximately 11:44 a.m. Wednesday, a significant amount of ship and barge traffic has been allowed to move in and out of port. As of 4 p.m. today, ship and barge traffic is largely back to normal with the exception of nine ships and barges that must be washed down before heading into uncontaminated water.

07 Jun 2004

Leaders of the Pack

MarineNews is pleased again this year to showcase the thoughts and opinions of workboat industry luminaries and executives, including: Terry Becker, President, Riverway Co.; Larry Daily, President, Alter Barge Line, Inc.; Cherrie Felder, Vice President, Channel Shipyard Companies; William D. Friedman, Executive Director, Ports of Indiana; Berdon Lawrence, Chairman, Kirby and Peter H. Stephaich, Chairman of Campbell Transportation Company, Inc., and C&C Marine Maintenance, Inc. President Riverway Co. For those who may not be familiar with Riverway Co., we are a "medium" sized barge line that operates approximately 500 barges and eight line haul towboats, moving dry bulk commodities primarily on the Mississippi River and Illinois Waterway.

04 Jan 2008

Port Security Plan Costs Rise by $3.5M

Costs soared by $3.5 million to install security enhancements at the Port of Los Angeles under a revised budget plan approved by the harbor commission. Technological upgrades and expanding the project's scope to include port tenants and public access areas were cited as the primary reasons for the spending hike, causing the project's budget to balloon to more than $9 million. Since then, an additional $555,678 in change orders was approved by the panel, but port officials noted that the most recent hike was not attributed to construction overruns. The new budget sets aside $1.1 million to install security systems at the new offices for Northrop Grumman and Liberty Hill Plaza…

23 Sep 2009

Canadian Committee of GL, Annual Meeting

"How to make ships more efficient?" This was the key question posed at the 15th Canadian Committee meeting of Germanischer Lloyd (GL). More than 20 representatives of the Canada and U.S. Flags, ship owners and operators, yards, consultants, and port authorities attended the event hosted by Executive Vice President Americas Capt. Kevin Coyne and Committee Chairman Peter Cairns from the Shipbuilding Association of Canada. "Reducing the environmental impact of shipping in order to upgrade its image as an environmentally friendly mode of transportation, is one of the most important topics for the maritime industry," he said in his introduction. Apart from fuel efficiency and emissions also statutory delegation and ship recycling was on the agenda.