Ship operating costs 'still in decline'

I SUSPECT most shipowners would raise their eyebrows if they are told it has been getting cheaper to run their ships. That however is what the latest OpCost report from international accountant and shipping consultant BDO says.

It has found that total annual operating costs in the shipping industry fell by an average of 1.8 per cent in 2018, compared to a 1.3 per cent fall for 2017. All categories of expenditure in 2018 were down overall on those for the previous 12-month period, with the exception of repairs and maintenance costs.

According to BDO's ship operating costs benchmarking tool, total operating costs for the tanker, bulker and container-ship sectors were all down in 2018, the financial year covered by the study. On a year-on-year basis, the tanker index was down by 4 points, or 2.4 per cent, compared to the 3 points (1.7 per cent) fall the previous year. The bulker index, meanwhile, fell by 4 points, or 2.6 per cent, compared to the 3 points (1.9 per cent) fall recorded in last year's OpCost. The container ship index was down by 2 points, or 1.3 per cent - identical to the fall recorded for the previous 12 months.