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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.  

Container-Shipping Consolidation Key to Survival

Image: Maersk Line

 Maersk Line CEO Soren Skou called for consolidation in the container-shipping industry, citing “extremely weak” demand growth amid steadily increasing capacity, says a report in the Wall Street Journal.   Skou said sharing costs with partners would help keep freight rates

Vroon Laying up 12 OSVs

Image: Vroon Offshore Services

 The Netherlands-based Vroon Offshore Services has decided to pull 12 offshore-support vessels out of operation, saying the move is a “direct result of the ongoing slump in offshore oil and gas activities”.   This consequently means it will also reduce the number of onboard

Value of Fire-damaged Vessel Disputed

Press release - International Transport Intermediaries Club (ITIC) has reported a case in which hull and machinery insurance underwriters instituted proceedings against a marine consultancy firm for alleged negligence in failing to properly review shipyard quotes in respect of the cost of

‘VoyagOR’ Project Seeks Shipping Participants

VoyagOR image.JPG

Shipping companies are being sought to assist the ‘VoyagOR’ project, which aims use route optimization systems to make shipping operations more cost-effective.   The VoyagOR project team is keen to engage with businesses that stand to benefit from improved route Optimization

Rolls-Royce to Cut More Staff of Marine Unit

Warren East (Photo: Rolls-Royce)

Britain's Rolls-Royce said it would cut an additional 400 staff from its marine business by the end of next year, its latest move to make the unit more efficient and cope with a fall in orders sparked by lower oil prices. The marine unit, which depends on oil and gas-related customers for about

Ivory Coast Starts Construction of Abidjan Port Upgrades

Ivory Coast began construction on Tuesday of a four-year, 560 billion CFA franc ($962 million) project to build a second container terminal and widen the canal leading to its main port in the commercial capital Abidjan.   Among the busiest in sub-Saharan Africa, the port serves Ivory Coast

Dry Bulk Shipping Turmoil Set to Extend into 2016

Photo: Star Bulk

Dry bulk shipping faces more earnings pain as a slowdown in commodities demand and a glut of ships are expected to pile on the pressure well into 2016, ship industry players said on Wednesday.   The dry cargo shipping industry has been hit hard this year by the global commodities meltdown

India's Paradip Port Mechanization Project Approved

Paradip Port to get Mechanised

  The Cabinet Committee on Economic Affairs (CCEA), Government of India, chaired by the Prime Minister Narendra Modi, has given its approval to the project of Mechanisation of East Quay (EQ) Berths-1, 2 and 3 at Paradip Port on Build, Operate and Transfer (BOT) basis

Kalmar Forklift Trucks for US Market

Kalmar DCG180-330 heavy forklift truck

  Kalmar, part of Cargotec, has announced the North American launch of its highly acclaimed heavy forklift at the Breakbulk Exhibition in Houston on 7 October 2015. The Kalmar DCG180-330, which competes in the 18-33 tonne capacity sector

MOL Undertakes CMAXS e-GICSX Test on MAYARO

The Methanol carrier MAYARO

  Mitsui O.S.K. Lines, Ltd. today announced that it has started a demonstration test of a next-generation condition-based engine monitoring system called “CMAXS e-GICSX” (electronic Global Internet Customer Support neXt)(*1) aboard the recently delivered methanol carrier MAYARO

Steel Cut on UK Navy’s Newest Warship

Image: BAE Systems

Construction has begun on a new warship for the U.K. Royal Navy as the Minister of State for Defense Procurement, Philip Dunne MP cut the first steel in Glasgow today.   HMS Trent is the third of three River Class Batch 2 Offshore Patrol Vessel (OPV) designed and constructed by BAE Systems

Using Big Data for Engine Preventive Maintenance

The Methanol carrier MAYARO. Photo: Mitsui O.S.K. Lines, Ltd

 Mitsui O.S.K. Lines, Ltd. announced that it has started a demonstration test of a next-generation condition-based engine monitoring system called “CMAXS e-GICSX” (electronic Global Internet Customer Support neXt)  aboard the recently delivered methanol carrier MAYARO. 

Wärtsilä 31 Engine for Aker ARC 124 Icebreaker

Wärtsilä launches the new Wärtsilä 31 engine a breakthrough in efficiency

  The recently introduced Wärtsilä 31 engine, which has been acknowledged by Guinness World Records as being the world's most efficient four-stroke diesel engine, has been selected to power a new generation icebreaker currently under construction at the PJSC Vyborg Shipyard

Newport News Shipbuilding Converts to Natural Gas

Newport News Shipbuilding has converted its steam-generation plant from heavy fuel oil to natural gas. The new system will reduce greenhouse gases by 30 percent and save the shipyard about $8 million per year. (Photo by Chris Oxley/HII)

Huntington Ingalls Industries (HII) announced today that its Newport News Shipbuilding division has converted its steam-generation plant from heavy fuel oil, also known as Bunker C, to natural gas to improve safety and lower operating costs and emissions to the environment.  

Peel Ports Tops 'Track 250' League Table

Peel Ports chief executive Mark Whitworth receiving the Sunday Times Grant Thornton Top Track 250 award from Grant Thornton UK chief executive Sacha Romanovitch

  Leading UK port operator, Peel Ports Group, has been recognised as the UK’s top company in this year’s prestigious Sunday Times Grant Thornton Top Track 250 league table.   Its ambitious development plans and strong financial results were key factors in the

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