World News
Increase in Ship Operating Costs Predicted
Vessel operating costs are expected to rise by more than 3 percent in 2013 and 3.2 percent in 2014, according to a survey by Moore Stephens International.
Respondents, largely shipowners and managers in Europe and Asia, predicted that crew wages and P&I insurance costs will each rise by 2.4 percent in 2013 and 2.5 percent in 2014, while lubricant expenses will increase by 2.2 percent each year.
Some of the survey responses cited bunker costs as a major concern.
"Fuel costs remain the biggest chunk of our operating expenses due to surging price increases," one said.
Another respondent said new regulations on sulfur emissions will force ships to switch to marine gas oil (MGO), resulting in higher costs and potential problems with loss of power.
Last year, the same survey predicted a 3 percent increase in costs in 2012, as well as 2013, but Moore Stephens shipping partner Richard Greiner said costs actually fell by 1.8 percent in 2012.
"[A]t first blush the predicted increase in costs for this year and next might come as something of a disappointment," he said.
"In truth, however, the levels of increase anticipated for 2013 and 2014 are still way below many of those we have seen in recent years.
"Moreover, they have to be viewed against a number of serious challenges facing the owners and operators of vessels in today's shipping industry."
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 504.50 | 2.50 | 620.00 | 3.00 |
| Rotterdam | 456.00 | 1.50 | 621.50 | 2.00 |
| Houston | 476.00 | 7.00 | 624.00 | 1.00 |
| Fujairah | 496.50 | 2.00 | 713.00 | 2.50 |
| Global 20 Ports Average | 526.50 | 0.50 | 712.00 | 0.50 |
| Global 4 Ports Average | 483.00 | 2.00 | 644.50 | 0.50 |
| Global Average Bunker Price | 570.50 | 1.50 | 751.00 | 1.00 |
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