The not-so-rosy take on lower operating costs

ON the face of it, news that shipowners are paying out less to keep their ships sailing is a positive development at a time when freight rates in most sectors are at rock bottom and supply of shipping generally significantly exceeds demand.

The reality is more complex, and less rosy.

International accountant and shipping consultant Moore Stephens says total annual operating costs in the shipping industry fell by an average of 2.4 per cent in 2015. This compares with the 0.8 per cent average fall in costs recorded for 2014, and is the fourth successive overall year-on-year reduction in such costs. All categories of expenditure were down on those for the previous 12-month period.