Peter T. Leach | Aug 17, 2011 2:50PM EDT
The costs of operating ships are increasing this year after a relatively static 2010 as operators face higher commodity prices and soaring premiums for piracy insurance, according to a new report by Drewry Shipping Consultants.
The report, “Ship Operating Costs 2011/12,” estimates overall operating costs are rising at a rate of 4 percent to 6 percent this year, depending on the vessel type.
“If it wasn’t bad enough that demand in the shipping markets has not recovered, commodity price rises have put more than a little pressure on ship operating costs,” said Paula Puszet, managing editor of the report. “Fleet owners and managers are certainly feeling the squeeze in 2011.”
The increase in commodity prices is pushing up ship lube, repair and maintenance costs. Ship-owners are also paying much higher premiums to cover the risk of vessel hijacking. Sharply high oil prices are driving up lubricating oil prices.
Manning costs, which have remained low across the globe because of low market demand, are also rising, as the delivery of big new ships raise demand for experienced seamen.
The report covers eight vessel sectors, more than 35 different sizes of vessel and operating budgets for arange of vessel types.
-- Contact Peter T. Leach at pleach@joc.com. Follow him on Twitter @petertleach.
