By
Guest |
Ship operating costs are set to rise in the next two years with crew wages and P&I insurance showing the greatest expected increase, according to international industry survey responses.
The research – conducted by shipping consultant Moore Stephens – showed a year-on-year cost increase of 3% in 2013 and 3.2% in 2014, based on answers that were supplied mostly from shipowners and managers in Europe and Asia.
Crew wages are expected to increase by 2.4% in 2013 and by 2.5% in 2014, while other crew costs are expected to go up by 2.1% and 2.2% respectively for the same periods.
The cost of P&I insurance is also expected to escalate by 2.4% in 2013 and by 2.5% in 2014, compared to increases of 2% and 2.3% respectively predicted for the cost of hull and machinery insurance.
Moore Stephens shipping partner Richard Greiner said: “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.”
Spending on spares, lubricants cost of stores, repairs and maintenance, and drydocking, are all likely to increase by around 2% respondents believed, while fuel and the costs associated with maintaining older vessels remain of significant concern.
“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,” Greiner said. “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.”
Management fees are forecast to produce the lowest increases in 2013 and 2014, at 1.4% and 1.7% respectively.
Greiner said the levels of increase anticipated for 2013 and 2014 are still way below many of those seen in recent years and he believes the research findings should be viewed against a number of serious challenges facing the owners and operators of vessels in today’s shipping industry.
“Projected increases in vessel operating costs for the next two years will be difficult for owners, operators and managers to absorb. The good news, however, is that the global economic environment is showing continuing signs of recovery. The freight markets should feel the benefit of that, and that is what pays the bills.”