Tuesday, November 10, 2015

Survey: Ship Operating Costs to Rise 3 Percent

By Mark Edward Nero

Crew wages, repairs and maintenance, along with dry-docking, are costs most likely to increase most significantly this year and next, according to the latest annual survey of ship operating costs by London-based accounting firm Moore Stephens.

The respondents, mainly vessel owners and managers in Europe and Asia, suggest that vessel operating costs across the board will rise by 2.8 percent this year and 3.1 percent next year. 

A large number of new regulations was a major reason cited, with other reasons for cost increases suggested by respondents to the survey being the high bargaining power of the oil majors, the advent of more sophisticated machinery aboard ship and stricter rules regarding maintenance and repairs carried out in ports, where the ship’s crew, who might be able to do the job cheaper, are forced to give way to more expensive contractors.

It’s also pointed out that in the marine equipment and services sector, the power of the buyers is being somewhat eroded by consolidation of fewer, larger companies, who are able to price accordingly.

Increases in port dues are also mentioned as likely to affect costs in the medium term, and there were several observations about crew cost increases.