Ship operating costs set to increase

The survey, based predominantly on responses from shipowners and managers in Europe and Asia, revealed that vessel operating costs are expected to rise by 2.8% in 2015 and 3.1% in 2016.

It also reveals that crew wages, repairs and maintenance, and drydocking are the cost categories likely to increase most significantly over the period.

Richard Greiner, shipping partner Moore Stephens, said: “The level of increases anticipated for 2015 and 2016 are low in comparison with many we have witnessed in recent years. Shipping has seen much worse, and prevailed. For example, many of the companies which endured a 16% rise in operating costs in 2008 are still operating successfully today.”

Crew wages are expected to increase by 2.4% in 2015 and by 2.3% in 2016, with other crew costs thought likely to go up by 2.0% and 1.9% respectively for the years under review.

The cost of repairs and maintenance is expected to escalate by 2.3% in 2015 and by 2.4% in 2016, while drydocking expenditure is predicted to increase by 2.6% and 2.3% in 2015 and 2016 respectively.

The predicted overall cost increases for 2015 were highest in the offshore sector, where they averaged 3.4% against the overall survey increase of 2.8%. For 2016, it was the tanker sector which was predicted to experience the highest level of increases – 3.4% compared to the overall survey average of 3.1%.

‘Staggering’ cost increases due to redundancy in electronic navigation and communication equipment and increased port dues, were among other issues identified by respondents which would likely increase operating costs.