Ship Operating Costs to Rise Over Next Two Years, Drewry Says
The value of working cargo ships is forecast to rise over the following two years after falling barely in 2015, in accordance with the most recent Ship Operating Costs Annual Review and Forecast 2015/16 report revealed by international transport consultancy Drewry.
The common decline in ship working prices throughout the sectors coated within the report in 2015 was 1.0%, however for ships which can be large shoppers of lube oils, the decline in general prices was nearer to 2%, the report exhibits. Drewry says that weak freight markets have compelled ship house owners to trim prices, whereas they’ve additionally been in a position to make the most of falling commodity costs and decrease insurance coverage prices.
“Operating costs are likely to rise in the future, as the scope for further cost cutting is in most cases quite limited. However, the expected increases in 2016 and 2017 are likely to be modest in nature as we anticipate only small rises in the cost of lube oils and other commodities; with a relatively weak global economy inflation is also expected to remain low,” feedback Nigel Gardiner, Managing Director at Drewry.
Modest will increase in manning prices are within the pipeline given the uplifts which have been agreed in International Transport Workers’ Federation (ITF) wage scales for 2016 and 2017, in accordance with Drewry. If freight markets enhance hull values for contemporary vessels will rise and this could result in greater hull and equipment (H&M) premiums, however solely small rises are anticipated in 2016 and 2017, the consultancy stated.
“Over the past few years of low economic growth, expenditure on repairs and maintenance has for many owners been cut back and when markets improve we expect some ‘catching up’ to take place. Hence, the expectation is that expenditure on R&M will rise faster than inflation”, concludes Gardiner.
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