Operating costs continue fall in 2014

All categories of costs – crew, stores, repair and maintenance, insurance and administration – declined, according to the study of 3,300 vessels of 24 different types. Following a 0.3% decline in costs in 2013, the result indicates another year in which ship owners and operators tightly managed their outgoings.

Lower freight rates and the impact of oil prices were evident directly in reduced spend in lubrication, contributing to an average 2.4% decline in spend on stores, and a 0.9% in repair and maintenance costs.

Moore Stephens partner Richard Greiner said: “Expenditure on repairs and maintenance was also marginally down on 2013, possibly attributable in part to weak steel prices and in part to the fact that poor freight rates arguably do not encourage owners and operators to engage in anything but the most essential repairs and maintenance. It is to be hoped that there is not a future price to be paid in this respect in terms of either safety or performance.”

The most significant in repair and maintenance costs were recorded for tankers of between 5,000 and 10,000 dwt (3.3%), and for 1,000-2,000 teu containerships (3.2%). But both very large crude carriers and capesize bulkers saw average costs grow, by 2.5% and 1.8% respectively.

The full findings can be viewed here.