Ship Operating Costs
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.
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.
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
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
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
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.
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
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 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
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.
Heerema Marine Contractors has chosen Emerson Automation Solutions to provide a valve remote control (VRC) system for the world’s largest semi-submersible offshore crane vessel, SSCV Sleipnir, currently under construction at Sembcorp Marine’s shipyard in Singapore.
Singapore’s offshore-support vessel provider Vallianz Holdings has ceased operations at its shipyard in Singapore as part of efforts to streamline business operations amidst the severe industry downturn. At the end of 2016
Lerwick Port Authority has detailed a series of objectives to meet its aim of running an efficient, cost-effective harbour, including continuing expansion of the infrastructure. The goals are featured in an interim Update produced ahead of publication of a new style annual report in Spring.
DHT Holdings, Inc. said that during a routine inspection of the DHT Jaguar, a fracture surrounding the inspection window of the rudder was identified. It is DHT's policy to inspect all newbuildings, including underwater areas, during their respective warranty periods.
Korea's Incheon Port is rapidly emerging as a port for government stockpile imports due to a significant increase in imports of US edible soybeans. Incheon Port Authority (IPA) announced that the Korea Agro-Fisheries & Food Trade Corporation (aT) designated Incheon Port as
The cost of transporting containers from ports now shows signs of recovery after the fall of Hanjin Shpiping Co after a period of down play, says a report in Business Korea. It appears that the strategy of Maersk Line, the world’s largest shipping group which cuts down
Since it started publishing in 1939, Maritime Reporter & Engineering News has recognized excellence in ship construction. This year 18 ships in total were honored, including many “world firsts.” NYK Blue Jay - Propulsion “World First”
Marking its 15th Anniversary in 2016, INTTRA, the world's ocean shipping electronic marketplace, looks back on the success of its innovative platform while embracing its future as the digital leader in logistics - growing rapidly and expanding its offering.
The marine industry is becoming increasingly competitive, with many looking to lower transportation costs while demanding the highest environmental and safety standards. Automating vessel operations and systems can significantly improve a vessel owner’s competitive edge in the market
Busan Port Authority (BPA, president WOO Ye-jong) stated that BPA held a meeting for KOR·JPN passenger liners(six companies) and Busan Tourism Organization on the 30th in order to attract more international passengers to the Busan Port.
With more and more ships navigating in polar waters, IMO has moved to address international concern about the protection of the polar environment and the safety of seafarers and passengers with the introduction of new regulations that all ships operating in these harsh and challenging waters
An agreement between two marine terminal companies located at the Port of Miami went into force yesterday, permitting those parties to seek cooperation and commonality in both business and operating matters. The Federal Maritime Commission (FMC) voted today not to prevent the "Miami Marine
Wärtsilä has signed a ten-year maintenance agreement with MOL LNG Transport Europe Ltd., an affiliate of the Japanese MOL Group. The agreement, which covers two LNG carriers, increases the predictability of the vessels' operations, enhances safety and reduces operational costs
With more and more ships navigating in polar waters, IMO has moved to address international concern about the protection of the polar environment and the safety of seafarers and passengers with the introduction of new regulations that all ships operating in these harsh and challenging waters must
A report forecasts the global container fleet market to grow at a CAGR of 3.19% during the period 2017-2021. The report says key vendors in the market are Maersk, CMA CGM & MSC. To calculate the market size, the report by Research and Markets considers volume based on