THIS YEAR`s reduction in ship operational costs, as much as seven per cent from, 2-5 per cent increases in 2011, is likely to be short-lived because of expected increases in oil and metal prices, says a new Drewry report.
The London shipping consultancy`s Ship Operating Costs Annual Review and Forecast 2012/2013 said steel and oil prices remain volatile and can prompt price increases for paint and hull treatments and machinery parts.
Operators will "need to resist the temptation to push profits by cutting corners," said Drewry managing editor Paula Puszet as any increases elsewhere is "likely to bite back later" particularly budgetary pressure in new tighter maritime regulations in safety, environment, manning on management and administration costs.
The report advised speedy compliance with SOLAS Chapter V for compulsory fitting of Electronic Chart Display and Information Systems and Bridge Navigational Watch Alarm Systems.
Additionally, all new ships in 2013 will have to be built with an Energy Efficiency Design Index (EEDI), including existing ships in order to control fuel consumption and reduce emissions.
Wages have stayed flat so far allowing manning costs to stay stable into 2013 and any problems of recruitment of officers has narrowed to 16,000 against vessel supply decline and a difficult market.
Insurance remained steady with hull and machinery static and premium hikes avoided by cautious owners. Protection and indemnity insurance had higher levels of free reserves and claims were down increasing investment income.
Drewry advises that shipowners and managers create forward contracts in lubricants in case of any price increases although fears of price disconnection from oil in 2012 were unfounded.