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Ship Operating Costs

DP World: Low Bunker Prices to Fuel Economic Growth

Photo courtesy of DP World

Falling ship operating costs and low bunker prices will translate into higher profitability fueling economic growth, says Dubai-headquartered DP World.   As bunker fuel prices drop, so too could shipping costs. Dubai-headquartered DP World says falling oil prices are good news for global shipping.  It plans to double investments this year, local media reports.   The Chairman of  DP World Sultan Ahmed bin Sulayem has stated that the fall in oil price may stimulate particular economies such as India and China who are among the most energy-dependent countries, relying on overseas producers for much of their oil needs. Crude oil prices are currently about half their level six months ago.   And world shipping is expected to be a key benefactor of such developments. In anticipation of such growth DP World is said to be planning investment of up to $1.9 billion in 2015 as part of a move to increase capacity by 14 percent.   The move could see DP World's capacity rise to 80 million twenty-foot equivalent units (TEU) throughput across terminals in Dubai, Turkey, Rotterdam, and India in 2015 and 100 million TEU by 2020.

Ship Ops Costs Increase, Insurance Costs Plummet

International accountant and shipping consultant Moore Stephens says total annual operating costs in the shipping industry increased by an average 2.2 per cent in 2010. This compares with the 2.0 per cent average fall in costs recorded for the previous year, which was the first time since 2002 that operating costs had fallen. All cost categories showed an overall increase this time, with the exception of stores and insurance – with the latter falling by 4.7 per cent overall.

Shippers Must Reduce Costs, Boost Efficiency

Michael Wilson

So what’s keeping ship operators awake at night these days?  Plenty, it seems. Sluggish recovery from a lingering worldwide recession, unsustainable debt loads, endemic overcapacity in most shipping trades, punishing freight rates, rising costs of fuel and regulatory compliance and a lingering sense that ships are not running as efficiently as they could.  The last two topics – reducing fuel costs while complying with emission regulations and improving ship operating

Dry Bulk Drought: Asia Rates Fall

(Photo - Vale do Rio Doce)

Rates for capesize bulk carriers on key Asian routes could continue to fall next week in the absence of major charterers although lower freight rates could tempt top iron ore miners back into the market and potentially buoy rates, brokers said. Charterers, including Vale, BHP Billiton and Fortescue Metals, kept out of the market on Thursday, shipbrokers said. "Without the likes of Vale and Rio Tinto in the market, rates are not going to rise

Working Toward a Low Carbon Future

Paul Floren (Photo: GE)

Recently, Pilita Clark, the Environment Correspondent at the Financial Times, wrote a very interesting article about a new report, ‘The New Climate Economy’, which I would highly recommend reading. The New Climate Economy was commissioned in 2013 by the governments of seven countries: Colombia, Ethiopia, Indonesia, Norway, South Korea, Sweden and the United Kingdom. Its reports are completely independent, and this latest one highlights some key recommendations which can help

Ship Operating Costs Down in 2014 -Moore Stephens

Photo: Andrew Aiello

Total annual operating costs in the shipping industry fell by an average of 0.8 percent in 2014, said international accountant and shipping consultant Moore Stephens. This compares with the 0.3 percent average fall in costs recorded for 2013. All categories of expenditure were down on those for the previous 12-month period, confirming that ship owners and operators continued to manage costs sensibly and to watch their cash carefully in 2014.  

Tax Moves Hurt UK Seafarers

Accountant Moore Stephens says changes to National Insurance rules for UK companies employing British seafarers announced last week may threaten British jobs. Shipping tax partner, Philip Parr, says, "From October 6, 2003, shipping companies using British resident seafarers and which operate mainly in UK waters face a payroll cost increase of 13 per cent, and increased costs of administration." On April 23, 2003 the Paymaster General announced that with effect from

Operating Costs Hit by Insurance and Crew Expenditure

Last year, shipowners experienced an average increase of just under four per cent in their total operating costs, compared to the previous year. And OpCost 2006, Moore Stephens' operating cost benchmark tool, confirms that the biggest increases were recorded in respect of insurance and crew costs. All vessel categories experienced an increase in total operating costs, but the increases were not as marked as in the previous year, when

Sino-Global Cost-Cutting Measures

Sino-Global Shipping America, Ltd. (NASDAQ:SINO), a leading, non-state-owned provider of shipping agency services operating primarily in China, announced new cost-cutting measures in response to the weakened global shipping industry. Specifically, some of the key measures include a 33% reduction in annualized office rent expense and reduction of staff from 75 as of September 2008 to 52 as of February 2009, resulting in an expected 27% reduction in annualized personnel expenses

China Shipbuilders may Merge to Stay Afloat

Picture by China COSCO Container Shipping

 The China's four state-run shipping-related companies  are reportedly in the initial phases of combining units in order to beef up the national shipbuilding industry, says local media.   The chances of mergers between China Ocean Shipping, China Shipping Container Lines, Sino Trans & CSC Holdings and China Merchants Group  has improved as they now suffer in a lackluster business climate, the Chinese-language Securities Daily reports.  

New Drones Are Being Developed for the French Navy

Image: DCNS

The future tactical component of France’s Naval Aerial Drone (Système de Drones Aériens de la Marine - SDAM) program is being designed by DCNS and Airbus Helicopters, who have joined forces to pool naval and aerospace skills and expertise.  

Industy Supports EU's Call for Financial Incentive to Enhance Sustainable Recycling

Photo: NGO Shipbreaking Platform

 The European Economic and Social Committee (EESC) adopted an own initiative opinion that calls on the European Commission to introduce an incentive that will “eliminate the abuses of irresponsible ship dismantling through a system which creates added value in an end-of-life ship”

Fuel Data Analysis Improves Performance

(Photo: Royston Diesel Power)

Enginei fuel monitoring systems provide comprehensive fuel data analysis and reporting options to provide vessel owners and operators with detailed engine performance and other mission critical information.   To support workboats, offshore support fleets and inland waterway operators along

UASC Upgrades Sat Connection with Marlink

Photo: Marlink

 United Arab Shipping (UASC) has installed Marlink’s news, entertainment and television solution XChange Media on 44 vessels.   The product provides on-demand multi-lingual content to crew personal devices in an alternative manner to on-board satellite TV.  

Standardized Modules Facilitate Quick Vessel Conversion

Image: Ulstein

High costs in converting existing vessels can efficiently put an end to updating a fleet. But with standardized, predefined modules, a vessel can be mobilized for other types of work within a few days without intervening in the ship structure

Ellicott Tallies Three Custom Dredger Contracts

B2190E (Image: Ellicott Dredges)

Ellicott Dredges, LLC announced contracts for three new custom-designed dredges, all scheduled to be delivered before the end of 2017.   In the first instance a major international chemical company selected Ellicott to build a custom electric bucketwheel dredge to mine salt in a very hard

Caterpillar Propulsion for New LNG Cruise Ships

MaK M 46 DF (Image: Caterpillar Marine)

MaK M 46 DF dual fuel engines to be installed on a new generation of cruise ships    Caterpillar Marine said its dual fuel engines have been selected for a new generation of cruise ships; tThe company’s MaK 16 M 46 DF dual fuel engines

MOL to Launch Biannual Vessel Safety Campaign

Photo: Mitsui O.S.K. Lines, Ltd

 Mitsui O.S.K. Lines, Ltd. (MOL) has announced the launch of its biannual safety campaign to begin on October 15, targeting all MOL group-operated vessels.   MOL views safe operation as a social commitment and gives it the highest of priorities in all of its business activities

UK Chamber of Shipping, MNTB Apprenticeship Seminar

Photo: UK Chamber of Shipping

 The UK Chamber of Shipping and the  Merchant Navy Training Board (MNTB) jointly hosted an Apprenticeship Seminar on the 11th October.    The purpose of the event was to brief attendees from the industry about the Apprenticeship Levy and how apprenticeships can play a role in

ABB Turbocharger PM Model Demonstrates RoI

Approximately 200,000 ABB turbochargers are in operation across the globe on ships, power stations, gen-sets, diesel locomotives and large, off-highway  vehicles. Image ABB

Independent study demonstrates that ABB’s Preventive Maintenance model for turbochargers achieves significant cost and operational benefits ABB announced study results which show a 202% return on investment (ROI) from using ABB Preventive Maintenance

Navis Boosts LATAM Market Share with N4

Photo: Navis

Navis, a part of Cargotec Corporation, has announced that Colombia-based Sociedad Portuaria Regional de Cartagena (SPRC) and Terminal de Contenedores de Cartagena (CONTECAR) will both migrate to the N4 terminal operating system (TOS) following a combined twenty-year run on SPARCS.  

CMA CGM Suspends Terminal Handling Charges in Ghana

Photo: CMA CGM

 CMA CGM informed its customers that the collection of Terminal Handling Charges (THC), which was introduced in Ghana on July 20th, 2016, has been temporarily suspended, effective October 4th, 2016.   CMA CGM will communicate on the resumption in due course.  

Container Shipping Market has Bottomed Out

Photo: CMA CGM

Hanjin’s receivership represents the trough of the container shipping market and despite continuing concerns of weak trade growth and fleet oversupply a gradual market recovery is now expected, according to the latest annual Container Forecaster and Review 2016/17 report published by global

Rolls-Royce Equipped Vessels Enter Service with Qatari CG

Ares 110 Hercules (Photo: Rolls-Royce)

Qatar’s Coast Guard Command has taken delivery of the first in a series of 17 composite hull boats powered and propelled by MTU high-speed engines and Rolls-Royce Kamewa waterjets.   The vessels, two Ares 75 and one Ares 110 Hercules

Moore Stephens: 4th Straight Year of Operating Costs Decline

Richard Greiner (Photo: Moore Stephens)

International accountant and shipping consultant Moore Stephens says total annual operating costs in the shipping industry fell by an average of 2.4% in 2015.   This compares with the 0.8% average fall in costs recorded for 2014, and is the fourth successive overall year-on-year reduction

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