Executive Briefings

Most Costs to Operate Ocean Vessels Expected to Rise Through 2016, Consultancy Say

Vessel operating costs are expected to rise in both 2015 and 2016, according to the latest survey by international accountant and shipping consultant Moore Stephens. Crew wages, repairs and maintenance, and drydocking are the cost categories likely to increase most significantly over that period.

Most Costs to Operate Ocean Vessels Expected to Rise Through 2016, Consultancy Say

The survey is based on responses from key players in the international shipping industry, predominantly shipowners and managers in Europe and Asia. Those responses revealed that vessel operating costs are expected to rise by 2.8 percent in 2015 and by 3.1 percent in 2016.

Crew wages are expected to increase by 2.4 percent in 2015 and by 2.3 percent in 2016, with other crew costs thought likely to go up by 2.0 percent and 1.9 percent, respectively, for the years under review. The cost of repairs and maintenance is expected to escalate by 2.3 percent in 2015 and by 2.4 percent in 2016, while drydocking expenditure is predicted to increase by 2.6 percent and 2.3 percent in 2015 and 2016, respectively.

The cost of hull and machinery insurance is predicted to rise by 1.8 percent and by 1.9 percent in 2015 and 2016, respectively, while for P&I insurance the projected increases are slightly lower – 1.7 percent and 1.8 percent, respectively.

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The survey is based on responses from key players in the international shipping industry, predominantly shipowners and managers in Europe and Asia. Those responses revealed that vessel operating costs are expected to rise by 2.8 percent in 2015 and by 3.1 percent in 2016.

Crew wages are expected to increase by 2.4 percent in 2015 and by 2.3 percent in 2016, with other crew costs thought likely to go up by 2.0 percent and 1.9 percent, respectively, for the years under review. The cost of repairs and maintenance is expected to escalate by 2.3 percent in 2015 and by 2.4 percent in 2016, while drydocking expenditure is predicted to increase by 2.6 percent and 2.3 percent in 2015 and 2016, respectively.

The cost of hull and machinery insurance is predicted to rise by 1.8 percent and by 1.9 percent in 2015 and 2016, respectively, while for P&I insurance the projected increases are slightly lower – 1.7 percent and 1.8 percent, respectively.

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Most Costs to Operate Ocean Vessels Expected to Rise Through 2016, Consultancy Say