Tag: operating cost

Average vessel operating costs increased modestly for the second consecutive year after two years of declines. However, cost inflation will accelerate on higher insurance premiums, according to the the Ship Operating Costs Annual Review and Forecast 2018/19 by Drewry.

Vessel operating costs in the shipping industry are expected to increase by 2.7% in 2018 and by 3.1% in 2019, according to Moore Stephens's latest survey, 'Future Operating Costs Survey'. Drydocking is the cost category likely to increase most significantly in both 2018 and 2019, followed by repairs and maintenance.

Scrubber-fitted dry bulk vessels could be earning a significant premium over those burning more expensive low sulphur fuel and higher asset values will reward those owners that fitted the technology early, according to Maritime Strategies International analyst, Will Fray.

Total ship operating costs fell by 1.3% in 2017, which compares with the 1.1% average fall in costs recorded for 2016, says Moore Stephens. For the third successive year, all categories of expenditure in 2017 were down on those for the previous 12-month period, mostly for insurance costs and stores.

Merchant shipping is constantly seeking to balance safety, cost and efficiency, and crewing strategies are a key part of that equation. Led by Solent University, the 'Effective Crew Project' explores best practice from maritime and other industries, to improve safety, welfare and efficiency at sea.

On the sidelines of SMM trade fair in Hamburg, Thordon Bearings published a study highlighting the commercial and environmental benefits of seawater-lubricated propeller shaft bearing arrangements. The study was carried out in response to the increase in oil EAL lubricated sterntube bearing failures.

ICCT issued a white paper studying Emission Control Areas in China, considering the potential for ships to route around the ECA. The paper reveals that ECAs which are too narrow may actually increase emissions if ship operators divert to save on fuel costs.

Amid the industry's hot debate on how to achieve compliance with the upcoming environmental regulations, and on how these rules are expected to affect companies financially, the world's largest container ship company, Maersk, said that the 2020 sulphur cap will add about USD2 billion to its annual fuel bill. 

Publishing its financial figures for the first half of the year, Norwegian dry bulk shipping company Jinhui announced that it is sees as more beneficial the option of low sulphur fuel oil instead of scrubbers, in order to achieve compliance with the global environmental regulations coming into force from 2020. 

The US Government Accountability Office released a report on the challenges that the US flag deep sea fleet is facing. This includes increasing operating costs and a declining number of qualified American mariners.  According to the report, the US government supports the US-registered fleet, helping it meet national defense needs. However, it has had a negative effect on some non-defense government programs.