Ship operating costs expected to rise, says Drewry forecast

SHIP operating costs will increase between 1.7 per cent and two per cent this year compared to a decline of 1.5 per cent last year, according to London`s Drewry Shipping Consultants latest forecasts.

In its "Ship Operating Costs 2010/11", Drewry charts the evolution of costs for manning, insurance, stores, supplies, repairs, maintenance, management and administration between 2007 and 2014 for a variety of vessel types and sizes.


Manning remains the chief area of concern, with Drewry`s index for all vessel types forecast to jump from 132 this year to 152 in 2014, compared to 100 in 2000. This is anticipated to raise its total vessel operating cost index from 145 to 162, reports London`s Containerisation International.


"Last year saw a retrenchment in the costs of running fleets, whereas the signs point to an upsurge in 2010/11. The key message is that if owners and managers do not have contracts, particularly, for items such fuel, lube, repairs and maintenance, they could find their budgets blown to the four winds," warned the report`s editor Paula Puszet.


Compared to last year, when exceptionally low charter rates barely covered vessel operating costs (excluding financing), the average daily charter rate of a 4,000-TEU vessel has more than doubled this year, up to US$24,119 (on August 17), according to the Hamburg Index, far greater than the vessel operating costs estimated by Drewry of $8,666.