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Ship Operating Costs

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. The findings are set out in OpCost 2011, Moore Stephens’ unique ship operating costs benchmarking tool, which reveals that all individual categories of vessel covered by the research, with the exception of handysize product tankers, experienced an increase in total operating costs in 2010, the financial year covered by the survey. Costs for the three main sectors covered – bulkers, tankers and container ships – were all up. The bulker index increased by 5 index points (or 2.9 per cent) on a year-on-year basis, while the tanker index witnessed a two-index-point (1.1 per cent) rise. Meanwhile, the container ship index (with a 2002 base year, as opposed to 2000 for the other two vessel classes) was up three index points, or 1.9 per cent. The corresponding figures in last year’s OpCost report showed falls in the bulker, tanker and container ship indexes of 1, 5 and 13 points respectively.


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


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


Stolt-Nielsen Reports Improved Fourth Quarter

Photo: Stolt Tankers

Stolt-Nielsen Limited has reported unaudited results for the fourth quarter ended November 30, 2013. Net profit attributable to SNL shareholders in the fourth quarter was $36.7 million, with revenue of $524.5 million, compared with $21.8 million, with revenue of $521.8 million, respectively, in the third quarter of 2013. Net profit attributable to shareholders for 2013 was $85.8 million, with revenue of $2,099.5 million, compared with $70.2 million, with revenue of $2,071


Seacor Smit Announces First Quarter Results

Seacor Smit Inc., announced net earnings for the first quarter ended March 31, 2002 of $11,406,000, or $0.55 per fully diluted share, on operating revenues of $103,643,000. In the comparable quarter ended March 31, 2001, SEACOR earned $12,134,000 per fully diluted share, on operating revenues of $93,200,000. Net earnings in the immediately preceding quarter ended December 31, 2001 were $18,679,000 on operating revenues of $109,804,000.


Chiles Offshore Reports 1Q Results

Chiles Offshore Inc. reported that, for the quarter ended March 31, 2002, the company had net income of $4.1 million or $0.20 per diluted share after an extraordinary loss of $0.02 per diluted share, compared to net income of $5.3 million or $0.30 per diluted share reported for the corresponding quarter ended March 31, 2001. Revenue for the quarter ended March 31, 2002, was $19.8 million compared to revenue of $19.2 million for the corresponding quarter ended March 31, 2001.


USS Makin Island Electric Drive Propulsion

Photo courtesy Full Spectrum Communications

The United States Navy commissioned its new LHD 8 ship USS Makin Island on October 24, 2009 in San Diego, California. The USS Makin Island is the first U.S. Navy amphibious assault ship to feature a unique hybrid propulsion system that relies on two LM2500+ gas turbines or two diesel electric motors. According to remarks made by the Honorable Ray Mabus, secretary of the U.S. Navy, during the Naval Energy Forum held in McLean, Virginia on Wednesday, October 14, 2009


New Book: Cost Management in Shipbuilding

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Global competition in the shipbuilding industry, which is continuously intensifying due to the entry of developing countries into the shipbuilding market, leads to decreasing margins and enormous cost pressure in this industry. Many shipyards have already gone bankrupt through the inability to keep to their original budget that the offer was based on. In the naval sector it is not unusual to double the originally estimated costs when building the vessel


Ocean Three Containership Alliance v the Rest: DMR Analysis

Full load: File photo

Last Tuesday’s announcement of the formation of the “Ocean Three” alliance – actually a combination of vessel sharing, slot exchange and slot charter agreements – confirmed one of the worst kept industry secrets


PPG Offers SIGMASHIELD 1200 Coating for Shipping

SIGMASHIELD 1200 coating for shipping in harsh environments -

  PPG Industries' protective and marine coatings business is fulfilling growing demand for "ice class" marine coatings for hull protection with SIGMASHIELD® 1200 coating. Developed from research conducted in PPG’s own facilities


Rickmers' Fleet Equipped with Bluetracker

Photo courtesy of Interschalt

Long-term efficiency gains for the fleet on account of data capture and analysis on board and onshore. Declaration of intent signed at the SMM.   Rickmers Shipmanagement and Interschalt signed a declaration of intent at the SMM for the installation of Bluetracker


MN 100: Thordon Bearings Inc.

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3225 Mainway Burlington, State ON Canada L9C5J8 Tel: (905) 335-1440   Email: craigc@thordonbearings.com  Website: www.thordonbearings.com President & CEO: Terry McGowan The Company: Thordon Bearings Inc. designs and manufactures a complete range of polymer bearing


Damen Building Walk 2 Work Vessel on Speculation

Image: Damen

After making final touches to the Damen Walk 2 Work vessel, a completely new and innovative design for the offshore support vessel market, Dutch shipbuilder Damen decided to start building the vessel on speculation, marked with the start of the basic and consequently detailed engineering of the


Rickmers-Linie Supports Low Sulphur Regime, Expects Cost Hike

Map of the Emission Control Areas (ECA) in the U.S. and Canada as well as North Sea, English Channel and the Baltic Sea

Rickmers-Linie has declared its support for the introduction of stricter sulphur regulations but expects that it will inevitably lead to an increase in the cost of marine fuels. “While shipping is already the most environmentally friendly mode of transport


PGS Completes Fleet Adjustment

The PGS fleet is the most efficient and flexible in the industry, with a clear focus on safety in all environments.

  Petroleum Geo-Services ASA announced today that it has implemented further steps to streamline operations, reduce cost and capital expenditures and improve cash flow. PGS has stacked, and will consider selling or scrapping, the seismic vessels Pacific Explorer and Nordic Explorer


Kvaerner Taking Advice on Strategic Growth Alternatives

Kvaerner rig topside: File photo

Kvaerner says it is exploring new strategic opportunities to further strengthen its business and has retained Greenhill & Co. International LLP to advise on evaluating all strategic alternatives.  Kvaerner has during the first half of 2014 delivered several key oil and gas projects on


DNV GL Presents AIP for ‘LNG Ready’ Mega Box Ships

From right to left: Tor Svensen, CEO of DNV GL Maritime, presents the Approval in Principle for the first “LNG Ready” mega box ships to Oi Hyun Kim, CEO and COO of HHI’s Shipbuilding Division, and Waleed Al Dawood, COO of United Arab Shipping Company, in the presence of His Excellency Sheikh Ali Bin Jassim Al Thani, UASC Board Member.

Wednesday at the SMM trade fair in Hamburg, DNV GL presented Hyundai Heavy Industries (HHI) and United Arab Shipping Company (UASC) with an Approval in Principle (AIP), recognizing the technical feasibility of the LNG fuel system design for the A14 and A18 series of container vessels


Marlink VSATs Chosen for UASC Containerships

United Arab Shipping Company (UASC) has selected WaveCall Plus VSAT (Very Small Aperture Terminal) services from Marlink to provide reliable connectivity for its new build fleet of 17 containerships, first vessel due for delivery by the end of 2014.


Bulk Carriers to Adopt Wärtsilä Dual-Fuel Engine Technology

 A new cement carrier for JT Cement will feature a 6-cylinder Wärtsilä 34DF main engine, making it the first bulk carrier to adopt Wärtsiläs multi fuel capability.

The increasing use of LNG as a marine fuel is further emphasized with the latest order for Wärtsilä's dual-fuel engine technology. A new cement carrier being built at the Scheepswerf Ferus Smit yard in the Netherlands will feature a six-cylinder Wärtsilä 34DF main engine


Look No Hands! Concept Short-sea Trader

Revolt rendering courtesy of DNV GL

DNV GL say that the increasing stress placed on land based logistic networks is driving the search for alternatives, and one of the most promising is short sea shipping. In response their researchers  have developed “ReVolt”, a vessel they claim is greener


Becker Mewis Duct Claims Massive CO2 Reduction

Becker Mewis Duct: Image Becker

Golden Becker Mewis Duct at SMM 2014 claims its top-selling product has already cut CO2 by 900,000 tonnes to date. A golden Becker Mewis Duct with a large '750“ in the middle will be one of SMM 2014’s “head-turners” says the manufacturer.


Vale, Cosco to Cooperate on Iron Ore Shipping

Brazilian miner Vale SA reached a deal with China Ocean Shipping Co (Cosco) for transporting iron ore, a move that could help the Brazilian miner resolve a costly two-year ban on docking its mega-ships at Chinese ports. Vale said in a statement that it would transfer ownership of four very


DNV GL: Beyond Condition Monitoring in the Maritime Industry

Photo: DNV GL

Moving from a regime of scheduled rule-based maintenance to a data-driven risk-based regime can lead to more accurate and timely maintenance resulting in increased safety, lower costs and greater availability of ship systems. A new report “Beyond condition monitoring in the maritime






 
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