Ship Operating Costs 2013 Held Steady Despite the Odds ...

MarineLink.com
Wednesday, January 22, 2014
Calculator credit Dominic Alves CCL

Judging by the findings of Drewry Maritime Research’s latest 'Ship Operating Costs Annual Review and Forecast' , ship operators were able to keep increases in operating costs in 2013 quite low – with increases in total costs typically ranging between 1.0-2.5% depending on the sector in question – despite 2013 being another difficult year for most.

Commenting on the latest findings Nigel Gardiner, Managing Director, stated:

“Poor freight markets have forced ship operators to keep any increases in ship operating costs to a minimum and our provisional data for 2013 suggests some success in this area.  But looking ahead and given the expected outlook for the world economy and international shipping markets we expect to see operating costs rise by 2-3% per annum in the next couple of years”.



Overview of the main findings

1.

Manning

With the exception of LNG, manning costs increased by 1-2% in 2013, as overall fleet growth moderated and pressure was eased on officer supply. Looking ahead as the world comes out of recession and shipping markets improve, upward pressure on manning costs is expected to return with increases being of a higher nature than seen in 2013.



2. Insurance

Shipowners and operators have certainly made a concerted effort to resist any increase in insurance premiums and they have been helped in this respect by weak assets values. But with some markets showing signs of revival in late 2013, and with a general recovery in asset values underway we expect insurance costs to rise in 2014. 



3.Stores, Spares & Lubricating Oils
Expenditure on items such as lubricating oils has been held in check by weak or static commodity prices, but if the world economy picks up in 2014 and commodity prices rise, we expect costs in this sector to rise as well. 



4.Repairs & Maintenance

Four years of weak freight markets and in many cases minimum maintenance regimes point to rises in repair and maintenance expenditure.  In 2013 weak steel prices helped to keep increases low, but with new regulations and an element of catch-up in repair due, we expect repair and maintenance expenditure to rise by at least 2.5 to 3% per annum over the next couple of years.



5.Management & Administration
Increases in this element of expenditure appear to have been quite low in 2013 – typically less than 1.0% on 2013 and we are of the opinion that operators will do they best to keep increases to a similar figure in the short term.

Source: Drewry Maritime Research’s latest 'Ship Operating Costs Annual Review and Forecast'

 

Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

Canadian Icebreaker Refit Contracts Awarded

The Canadian Government informs it has awarded a $6.5 million contract to Babcock Canada Inc. for critical refit work for Canadian Coast Guard ship 'CCGS Louis S.

Atkins Gain Maersk Oil Engineering Contract

Design, engineering and project management consultancy Atkins, says it has been awarded an engineering support contract covering three of Maersk Oil’s UK assets in the North Sea.

Newport News, ODU Partner for Bachelor's Degree Program

Huntington Ingalls Industries (HII) announced today that apprentices at Newport News Shipbuilding will now have the opportunity to earn a bachelor of science degree

Ship Repair & Conversion

DP World in Talks With Banks for $3b Loan

Dubai-owned port operator DP World is in talks with lenders to triple the size of an existing $1 billion loan, as well as extend the lifespan and reduce the interest rate,

Canadian Icebreaker Refit Contracts Awarded

The Canadian Government informs it has awarded a $6.5 million contract to Babcock Canada Inc. for critical refit work for Canadian Coast Guard ship 'CCGS Louis S.

Atkins Gain Maersk Oil Engineering Contract

Design, engineering and project management consultancy Atkins, says it has been awarded an engineering support contract covering three of Maersk Oil’s UK assets in the North Sea.

Finance

Petroecuador Tenders to Buy High Octane Naphtha

State-run Petroecuador has launched two tenders to buy a total of 22 cargoes, 240,000 barrels each, of high octane naphtha RON 87 and 93 for delivery starting on May 21-23,

DP World in Talks With Banks for $3b Loan

Dubai-owned port operator DP World is in talks with lenders to triple the size of an existing $1 billion loan, as well as extend the lifespan and reduce the interest rate,

Norway's Oil Sector May Face More Project Cuts, Delays

More oil and gas projects in Norway could be put on hold because of rising costs, adding to a growing list of developments that have been delayed or called off,

News

Petroecuador Tenders to Buy High Octane Naphtha

State-run Petroecuador has launched two tenders to buy a total of 22 cargoes, 240,000 barrels each, of high octane naphtha RON 87 and 93 for delivery starting on May 21-23,

DP World in Talks With Banks for $3b Loan

Dubai-owned port operator DP World is in talks with lenders to triple the size of an existing $1 billion loan, as well as extend the lifespan and reduce the interest rate,

Norway's Oil Sector May Face More Project Cuts, Delays

More oil and gas projects in Norway could be put on hold because of rising costs, adding to a growing list of developments that have been delayed or called off,

Logistics

No Lift for Konecranes as Q1 2014 Profit Slips

Finnish crane maker Konecranes on Thursday reported a 32-percent fall in its core quarterly operating profit amid slow demand and tight competition. January-March 2014 operating profit,

GAO: Limited Commercial Arctic Development Foreseen

Decreasing seasonal sea ice has opened up Arctic waters for longer periods with resulting potential economic opportunities in commercial shipping, cruises, commercial fishing, oil, and mining.

Brokers Marcon Conclude Ocean Deck Barge Sale

Marcon International, Inc. of Coupeville, Washington says that Pacific Coast Maritime, Inc., Seattle, Washington, a subsidiary of Harley Marine Services, Seattle,

 
 
Maritime Security Naval Architecture Navigation Pipelines Port Authority Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1476 sec (7 req/sec)