BoardMarine Accident Investigators Forum in Asia

SubjectShip Running Costs Up 4% Hit1500
WriterLee Min Jung Date2006.10.20

Wednesday, 18 October 2006 <br /> <br />TOTAL vessel operating costs rose by about 4% compared to the previous year according to shipping accountant<br> Moore Stephens. OpCost 2006, the firm's operating cost benchmark tool, shows that the biggest increases were<br> recorded in respect of insurance and crew costs. <br /> <br />All vessel categories experienced an increase in total operating costs, but the increases were not as marked as in the<br> previous year, when owners were using the cash generated by a period of strong freight rates to upgrade their ships.<br> This year, overall operating costs in the tanker market, for example, were up by 5.4 per cent on a year-on-year basis,<br> while a smaller increase - of 3.7 per cent - was recorded in the bulk carrier sector. <br /> <br />Moore Stephens Shipping Industry Group partner Richard Greiner says, "Although the percentage increases in total<br> operating expenditure, overall, were down on the previous year, the significant increases shown in certain categories<br> emphasise the need for owners and operators to keep a tight rein on costs.”

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