Ship Operating Costs Annual Review and Forecast 2006/07(http://
provides independent operating cost assessments as well as detailed projections
for key ship types. Now in its 6th year, the report delivers an analysis of the
influences and drivers determining future costs of:
Manning and crewing
Insurance – H&M, P&I and others
Repairs and maintenance
Stores, spares and supplies
Management and administration
This analytical report provides facts on the industry plus informed insight
relating to cost levels and the drivers of change.
Sections included within the report:
Executive summary
The structure of ship costs
Manning
Insurance
Repairs and maintenance
Stores, spares and supplies
Management and administration
Essential reading for:
- Shipowners
- Ship managers
- Those involved in preparing and evaluating ship operating cost budgets
- Those requiring informed insight into market forces and their implications
for cost levels in the future - Financiers, insurers and ship repairers
- Government agencies
Key factors:
The report arrives at a time when ship owners are in a relatively fortunate
position – buoyed by unprecedented circumstances, albeit with some concerns on
the horizon
It points to 2006-07 being a period when owners have to look beyond the
‘headline numbers’ and focus on the factors driving cost changes
Main findings
The latest issue of Ship Operating Costs Annual Review and Forecast arrives
at a time when ship owners are in a relatively fortunate position – albeit with
some concerns on the horizon – buoyed by unprecedented circumstances. The report
points to 2006-07 being a period when owners have to look beyond the ‘headline
numbers’ and focus on the factors driving cost changes within the operating cost
budget.
Manning
Manning is the single largest operating cost budget element and cannot be
underestimated in cost planning equations. It reports that, of late, the marine
manning scene has been stable although concerns exist over potential future
shortages of Officers – particularly in a number of specialist berths.
It predicts that 2006 and 2007 will see a hike in the wage equation and
reported that ITF/TCC (“Blue certificate”)
rose by 10.7% in January 2006 under a two-year deal. “Green certificate”
are also up but this deal is phased over two years. Officer remuneration is
determined to a greater degree by market forces, but there are pointers in the
direction of sizeable pay increases, especially for specialist berths.
Insurance
After a five-year run of increases, 2006 was expected to see the insurance
sector marking time in terms of premium hikes. At the January and February H&M
and P&I renewal rounds this may have been the case but early 2006 has yielded a
series of major claims, which may give further momentum to future premium
increases.
Reinsurance risks are becoming more problematical – a factor likely to see
cost increases passed on through insurance premiums. Likewise, ship values have
increased and so too have insured values. It advises that the entire liability
and compensation landscape could be on the brink of significant changes.
