Ship Operating Costs Set to Rise

Shipowners and managers expect that vessel operating costs, lead by crewing and repairs, will increase 2.9% in the next two years, according to a Moore Stephens survey. Respondents to the survey indicated that crew wages were expected to increase 2.4% by the end of 2014 and 2.6% in 2015, while repairs and maintenance would go up 2.3% and 2.4%, P&I by 2.0% and 2.2%, drydocking by 2.1% and 2.2%, and management costs by 1.2% and 1.5%, respectively. Expected crew cost increases followed the implementation of the MLC which was “likely to be a significant factor in higher labour and crewing costs”, as well as “the strong presence of labour unions in the shipping industry,” and shortages of officers and engineers, according to responses.