October 19, 2004
Ship operating costs rise significantly
Even though it does not factor in bunker prices, a report from accountant Moore Stephens shows the cost of operating most ship types has risen significantly in the past year.
Crew costs and insurance were a major factor in the increases in most tonnage categories.
OpCost 2004 is a report extracted from Moore Stephens' database of actual running costs of over 800 ships for the accounting year 2003. Operating costs for seventeen vessel types are shown with twelve cost categories split across five main groups of: crew costs, stores, repairs and maintenance, insurance and administration.
OpCost 2004 shows that the most significant increase in total operating costs came in the VLCC and product tanker sectors. Compared with the 2003 numbers, total operating costs increased by 12.4 percent and 10.4 percent respectively. Bulk carriers also experienced rises across the board, with the 9.8 percent increase for panamax bulkers being the most substantial. Containerships and reefers, meanwhile, showed increases of 9.8 percent and 10.2 percent.
Increases in total crew costs accounted in most tonnage sectors for a large proportion of the increase in total operating costs. Among the most significant were increases of 8.6 percent for VLCCs and 6.4 percent for suezmax tankers.
Insurance costs have increased for most vessel types. All bulk and tanker vessels noted an increase in total insurance contributions, with the most significant being the 29.4 percent increase for capesize bulkers and the 30.1 [ercent increase for reefers.
OpCost data is obtained confidentially from shipping company clients of Moore Stephens, and from shipowners and managers who submit accounts for inclusion. The report is available for sale at US$500 per copy, but clients and voluntary contributors receive free reports. Special reports using details within the database can be tailored to individual needs. For more details email :