Vessel Operating Costs Expected to Rise 3%

MarineLink.com
Monday, November 04, 2013
File image in public domain

Vessel operating costs are expected to rise by more than 3.0% in both 2013 and 2014, according to a new survey by international accountant and shipping consultant, and Maritime London member, Moore Stephens.

The survey is based on responses from key players in the international shipping industry, predominantly shipowners and managers in Europe and Asia. Those responses revealed that vessel operating costs are expected to rise by 3.0% in 2013, and by 3.2% in 2014, with crew wages and P&I insurance likely to increase most significantly.

Crew wages are expected to increase by 2.4% in 2013 and 2.5% in 2014, with other crew costs likely to go up by 2.1% and 2.2% respectively for the years under review. The cost of P&I insurance is also expected to escalate by 2.4% in 2013 and by 2.5% in 2014, this compared to the increases of 2.0% and 2.3% respectively predicted in respect of the cost of hull & machinery insurance.

Expenditure on spares is expected to increase by 2.1% and 2.3% in 2013 and 2014 respectively, while respondents anticipate a 2.2% increase in the cost of lubricants in both years under review. The cost of stores is expected to increase by 1.9% and 2.0% respectively for 2013 and 2014, while repairs & maintenance expenditure is predicted to increase in those two years by 2.3 per cent and 2.4 per cent respectively.

Drydocking costs over the same period are expected to rise by 2.1% and then 2.4%. Meanwhile, as was the case in the 2012 survey, management fees are deemed likely to produce the lowest level of increase in both 2013 and 2014, at 1.4% and 1.7% respectively.

Moore Stephens shipping partner Richard Greiner says, “Ship operating costs fell by an average of 1.8% across all the main ship types in 2012, so at first blush the predicted increase in costs for this year and next might come as something of a disappointment. In truth, however, the levels of increase anticipated for 2013 and 2014 are still way below many of those we have seen in recent years. Moreover, they have to be viewed against a number of serious challenges facing the owners and operators of vessels in today’s shipping industry.”

He added: “Crew costs, as always, emerged as a major concern for respondents, which is no surprise given the potential budgetary implications of the entry into force of MLC 2006 and the increasing involvement of both international and regional bodies in the oversight of crew competence and its effect on safety. Continuing the theme of previous surveys, fuel costs again featured prominently as a cause for concern, as did the cost of having to comply with increased regulation generally in the shipping industry."

"The latter, unfortunately, cannot be addressed by the expedient of applying new rules and regulations only to new ships, as suggested by one respondent. The regulators want a clean and safe shipping industry, and it is the industry itself, which includes a significant number of older vessels, that will have to underwrite the budget needed to achieve compliance.”



Source: Moore Stephens/Maritime London


 

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

People & Company News

NSRP Risk Management Panel and SCA Joint Meeting

The National Shipbuilding Research Program (NSRP) Risk Management Panel will be meeting jointly with the Shipbuilders Council of America (SCA) November 5-6, 2014 in Virginia Beach, Va.

WEG to Showcase Drive Solutions at SMM

WEG, a global supplier of drive systems, will showcase its range of systems for the shipbuilding and offshore industry at this year’s SMM (Shipbuilding, Machinery & Marine Technology Fair) in Hamburg.

Kirby Reports Record Q2 2014

Record 2014 second quarter earnings per share of $1.31 compared with $1.11 in the 2013 second quarter, which included a $0.07 benefit due to the reduction of the United earnout liability.

Finance

Kurdistan Says Crude Cargo Near Texas Legally Sold

A $100 million cargo of crude oil in a tanker near Texas was legally shipped and sold by Kurdistan, lawyers for the autonomous region in Iraq told a U.S. court in a letter seen on Thursday,

Kirby Reports Record Q2 2014

Record 2014 second quarter earnings per share of $1.31 compared with $1.11 in the 2013 second quarter, which included a $0.07 benefit due to the reduction of the United earnout liability.

UK Oil Imports Exceed Exports for First Time in 30 Years

Britain imported more oil products than it exported last year for the first time in 30 years, an official report shows, and analysts say the country is likely to

News

NSRP Risk Management Panel and SCA Joint Meeting

The National Shipbuilding Research Program (NSRP) Risk Management Panel will be meeting jointly with the Shipbuilders Council of America (SCA) November 5-6, 2014 in Virginia Beach, Va.

US DOE Approves Oregon LNG Export Project

The U.S. Energy Department said on Thursday it has approved Oregon LNG to export liquefied natural gas, as the Obama administration works through applications to

CFOA Schedules Annual Conference

The 2014 Canadian Ferry Operators Association (CFOA) annual AGM & Conference is scheduled to take place September 29-30 in Quebec City. The two-day conference

Vessels

Scottish Sea Farms Takes New Vessel Delivery

Scottish Salmon Farms has taken delivery of its latest vessel – powered by twin Doosan V158TIH main engines supplied by WaterMota.   Designed by consultant naval

Pre-Mooring Safety Inspections at Trieste, Italy

The SIOT/TAL Terminal at Trieste has advised that the TAL Pre-Mooring Safety Inspection program will be modified from 1 September. The checks at road will affect:

Hornbeck Offshore Ride High on Q2 2014 Results

Hornbeck Offshore Services, Inc. has announced its financial results for the second quarter ended June 30, 2014.  Following are highlights for this period and excerpts

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Pipelines Port Authority Ship Electronics Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.2715 sec (4 req/sec)