Page 65: of Maritime Reporter Magazine (November 2018)

in line with a predicted rise in oil prices market intelligence and common sense this year and next. suggest that freight rates still need to

Expected increases in the price of improve signi? cantly in order for ship- hull and machinery insurance are up ping to start making the sort of money on estimates made 12 months ago but, it should command in light of the vital due to the highly competitive nature of role it plays in international trade and the market, cannot be regarded as an commerce.

entirely reliable bellwether. Estimates Moore Stephens sums up their analy- of protection and indemnity cost in- sis by saying that the more money that creases are also up, perhaps re? ecting shipping makes, the more comfortably increased management costs and the it can meet its operating expenses. In- possibility that the market’s recent be- creases in operating costs must be ex- nign large-claims experience may not pected, and budgeted for. Those costs be repeated over the next couple of may change in nature, because new years. technology is already helping to reduce

One could argue that the level of outgoings in some areas, while on the predicted operating cost increases for other side of the coin there is the evi- 2018 and 2019 ought to be manageable dent need for technological investment in a competitive, viable industry en- to combat the likes of cyber-crime.

vironment. Nobody doubts shipping’s There are more Ifs involved in the essentially competitive nature, but the shipping industry than there are in issue over viability is less clear-cut. Kipling’s poem. Shipping in the com-

Shipping has held up well during a ing years will require good manage- ten-year economic downturn, and in- ment, good judgment, good research, vestors continue to express con? dence good advice and good luck. And it will in the industry’s potential for pro? t. require good husbandry. The Moore

Sadly, some good companies have Stephens survey adds as cautionary gone to the wall over the past decade footnote: “As Benjamin Franklin said, but, overall, the industry has become “Beware little expenses, a small leak leaner by virtue of having let market will sink a great ship.” www.moorestephens.co.uk forces function as they should. Yet (206) 613-1446

FOR FUEL AND LUBRICANT SERVICES ON THE

US WEST COAST CALL (206) 613-1446 www.marinelink.com 65

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