Drewry expects draw back strain on working prices to stay in these areas the place vessel homeowners have better management
Vessel working price (OPEX) inflation has accelerated in 2022 on mounting worldwide macroeconomic value pressures, regardless of some receding of COVID-19 associated prices, in accordance with the newest Ship Operating Costs Annual Review and Forecast 2022/23 report revealed by delivery consultancy Drewry
Drewry estimates that common each day working prices throughout the 47 completely different ship varieties and sizes lined within the report rose for the fifth consecutive yr to succeed in $7,474 in 2022, an increase of two.2%. This compares with a a lot smaller 1.3% improve final yr and a pre-pandemic pattern of flatlining or declining prices. While broader pricing pressures stay, vessel OPEX inflation is forecast to reasonable over the medium time period.
“The rise in OPEX was driven mainly by price inflation in goods and services across the shipping sector, as well as supply chain disruption induced by the Covid-19 pandemic,” stated Latifat Igbinosun, head of vessel OPEX analysis at Drewry. “Cost inflation was restrained last year, especially for repair and maintenance, as owners took advantage of the resumption in trade growth and rising vessel earnings to keep ships in service for longer. However, vessels returned to yards this year, pushing up costs.”
A excessive proportion of the 2022 OPEX improve was pushed by lubricating oil prices, which surged 15% as a result of restricted refinery provide and excessive oil costs. Costs additionally elevated for marine insurance coverage cowl which rose 8% on common, following a 7% uplift in 2021, pushed by a hardening insurance coverage market and better vessel values in some sectors which pushed up hull % equipment insurance coverage premiums.
Cost inflation was additionally evident in different key areas. For occasion, drydocking prices rose 6% in 2022 as a result of restricted slots as shipyards opted for worthwhile new orders and retrofitting initiatives. Meanwhile, shops and spares prices elevated 2% apiece, whereas manning prices flatlined as a result of unwinding of some COVID-19-related prices.
The rise in prices was broad-based throughout all the principle cargo carrying sectors. The newest assessments embrace vessels within the container, dry bulk, product, crude, LNG, LPG, normal cargo, reefer, RO/RO, and automotive provider sectors.
Looking forward, over the close to time period, a slowdown in lots of seaborne trades is anticipated except for the energy-related commodity trades equivalent to oil and fuel, which is able to considerably have an effect on accessible budgets for spending on vessel operations over the subsequent few years. Drewry expects draw back strain on prices to stay in these areas the place vessel homeowners have better management, however tightening seafarer availability and ongoing decarbonization rules are anticipated so as to add to homeowners’ price burden over the medium time period.
“The outlook for vessel operating costs remains uncertain, given ongoing geopolitical risks, rising inflationary pressures and deteriorating economic outlook,” stated Igbinosun. “But Drewry forecasts some moderation in OPEX inflation as pressures on certain cost heads such as marine insurance and drydocking recede, despite the risk of rising seafarer wage costs in light of a looming officer shortage.”
