Page 64: of Maritime Reporter Magazine (November 2018)

Moore Stephens says that

Vessel Ops Costs to Rise

In a report released in mid-October, offshore sector (which is arguably the operating costs for 2018 and 2019 re- spondents ranking it [regulations] in ? rst

International accountant and shipping sector least able to absorb these added spectively compare to an average fall in place. The Ballast Water Management consultant Moore Stephens said total costs), where they averaged 4.1% and actual operating costs in 2017 of 1.3% Convention (BWM) and Sulphur 2020 vessel operating costs in the shipping 4.2% respectively for 2018 and 2019. By across all main ship types recorded in the are the major items on the list of incipi- industry are expected to rise by 2.7% in way of contrast, predicted cost increases recent Moore Stephens OpCost study.” ent shipping legislation, but the industry 2018 and by 3.1% in 2019. Responses to in the bulk carrier sector were 1.8% and Greiner continues, “One year ago, ex- is becoming more tightly regulated gen- the ? rm’s latest annual Future Operating 2.6% for the corresponding years. Oper- pectations of operating cost increases erally in terms of both safety and envi-

Costs Survey revealed that drydocking is ating costs for tankers, meanwhile, are in 2018 averaged 2.4%, so the increase ronmental responsibility, so compliance the cost category likely to increase most expected to rise by 2.4% in 2018, and by now in that expectation to 2.7% must be with evolving national and international signi? cantly in both 2018 and 2019, ac- 2.9% the following year, while the corre- regarded as sobering – if not unexpected regulation is likely to remain a signi? - companied in the latter case by repairs sponding ? gures for container ships are –news. Projected increases in operat- cant item in operating cost analyses and and maintenance. 4.2% and 3.8%. ing expenditure are part and parcel of projections for the foreseeable future.

Moore Stephens contacted key play- Overall, the cost of new regulation was the workings of any industry, and must The fact that drydocking emerged as ers in the shipping market internation- identi? ed as the most in? uential fac- be factored into budget projections. But the cost category likely to increase most ally over a 28 day period in September tor likely to affect operating costs over these latest predicted increases, whilst signi? cantly in both 2018 and 2019 is 2018, asking them to complete a short the next 12 months, at 23%, up from a cause for concern, should not unduly unsurprising, given the need to comply web-based questionnaire, also providing equal third place at 15% last year. 18% surprise or concern shipping, an industry with the existing and emerging regula- information on their business type, head- of respondents identi? ed ? nance costs which has seen – and in many cases en- tory framework within which the indus- quarters’ location and sector most rel- in second place, down from 20% and dured – much larger increases during the try is being obliged to operate. The same evant to their operations to help sharpen ? rst place last year. Competition ranked past decade.” may be said of repairs and maintenance, the analysis. According to Moore Ste- in third place at 15% as it had last year. New regulations were included this where any previous delay in attending to phens, the survey represents a broad Meanwhile crew supply fell to 12% year for only the second time in the life items of a non-critical nature will need to cross section of industry and that their compared to 19% and second place in of the survey among the list of factors be addressed.

analysis is representative of the shipping last year’s survey. which respondents could cite as most Estimates relating to the likely increase industry as a whole. Richard Greiner, Moore Stephens part- likely to in? uence the level of operating in the cost of lubricants over the two-

Signi? cantly, the predicted overall cost ner, Shipping and Transport, says, “The costs over the next 12 months. This has year period, meanwhile, are towards the increases were once again highest in the predicted 2.7% and 3.1% increases in proved to be a timely addition, with re- higher end of the survey scale, which is 64 Maritime Reporter & Engineering News • NOVEMBER 2018

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