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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.  


IOCs Stress on OSV Fuel Management Performance

Enginei screen Photo Royston

Growing insistence by international oil companies (IOCs) that oilfield contract vessels (OSVs) are fitted with fuel monitoring systems has prompted an upsurge in interest in marine engine monitoring systems. Diesel power specialist Royston reports that it is equipping a growing number of


Great Lakes Shippers Set Top Priorities

North America’s largest mining, manufacturing and agricultural companies have helped identify four top priorities to improve the competitiveness of Great Lakes shipping, and as a result, the prosperity of the entire region.   These priorities will be the Chamber of Marine


Amazon Expands Logistics Reach in China

Amazon.com Inc is aggressively expanding its logistics operations in China as part of a broader effort to control the rising cost of shipping billions of packages.   Its plans in China, outlined in filings there, include handling cargo and customs for goods headed to ports in Japan


Sydney Deep Water Port Project Named NOVAPORTE

The Harbor Port Development Partners (HPDP) and the Port of Sydney announce the new brand for Sydney’s new container terminal: NOVAPORTE and its adjacent logistics park NOVAZONE.   “The name reflects the international nature of our project”, said Albert Barbusci


Driving the Inland Waterways

Eastern Thunderbolt  Towboat Proposal Profile

Propulsion evolves, improves and powers forward in the inland markets. And, Z-Drive propulsion is the future. In a white paper released late in 2014 by The Shearer Group, Ed Shearer and Greg Beers outlined The Next Generation of inland vessels


Microsoft Sinking Data Center in the Pacific

Photo:  Microsoft

 Microsoft swims to ocean’s depth to test underwater data center as environmentally friendly cloud computing alternative. The software giant has dropped a data center into the Pacific Ocean off California.    Microsoft  gave details of its rationale for going underwater


Subsea 7 to Exit Singapore for Kuala Lumpur

Photo: Subsea 7

 Rising costs of doing business in Singapore has forced Subsea7 to switch its regional headquarters from the city to Kuala Lumpur (KL), says a report in Business Times.   Against a backdrop of persistently low oil prices, fresh concerns have emerged over Singapore's competitiveness as


BAE Systems Supports Thai Navy Patrol Boat Build

Danela McFadyen, Head of Commercial, International with Captain Pichayane Tanprasert, Managing Director of Bangkok Dock (Photo: BAE Systems)

BAE Systems announced it has signed a contract with Bangkok Dock to assist in the licensed construction of a second 90-meter Offshore Patrol Vessel for the Royal Thai Navy. Under the agreement, BAE Systems will provide engineering support and advice during construction of the vessel in Thailand.


Dramatic Turnaround for Hanjin Shipping in 2015

Photo: Hanjin Shipping

 The Korean shipping giant Hanjin Shipping  improved its financial result in 2015 and came back to profit trajectory.    It reported a $6m net profit in 2015 from a $396m loss the previous year and said it expects cost-saving measures to help it weather a tough 2016.  


Asia Dry Bulk-Capesize Rates Should Remain Flat

Western Australia-China rates hit near 17-year low; owners explore laying-up ships. Freight rates for capesize bulk carriers on key Asian routes should remain flat next week as the Lunar New Year holiday in China will curtail chartering activity, shipbrokers said on Thursday.


Baltic Index Slips Below 300 Points

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying industrial commodities, slipped below 300 points on Thursday, to an all-time low.   The overall index, which gauges the cost of shipping dry bulk including iron ore, cement, grain, coal and fertiliser


Damen Builds Cable Installer For Maersk Supply Service

Photo: Damen

New Damen-built vessel for Maersk Supply Service to undertake long-term charter with DeepOcean   A newbuild DP2 cable installation vessel, Maersk Connector, was handed over from Damen Shipyards Group to Maersk Supply Service on February 4, 2016


Shipping Line Consolidation: What Did the Airlines Do?

Image: Freshfields Bruckhaus Deringer

 The container shipping industry is faced with the challenge of ever-decreasing freight rates that can only be served viably with larger, more efficient vessels. However, market growth does not allow each individual line to increase the size of its ships to the larger


R&M Group Merges with Sea Level Marine

l.t.r.: Thomas Grunwald (R&M USA), Darelynn Prejean, Barry Lee (Sea Level Marine)

R&M Ship Technologies USA, Inc. has merged Sea Level Marine, LLC. in efforts to increase the range of services offered to the company’s global client base. By aligning resources, customers will benefit from the ships’ lifecycle services and enhanced portfolio


Elbit Systems Introduces Seagull

Seagull USV (Image: Elbit Systems)

Israel’s Elbit Systems unveiled a prototype of what it claims is the world’s first unmanned system for anti-submarine warfare (ASW) missions.   Developed in less than three years with technical and performance input from the Israeli Navy and Israel’s Ministry of Defense






 
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