Tuesday, October 30, 2012
Survey: Shipping costs to rise in 2012 and 2013
Vessel operating costs are projected to rise by 3 percent in 2012 and 2013, due to an expected boost in the price of marine lubricants used to prevent corrosion on machinery, according to a recent survey conducted by accountancy and advisory company Moore Stephens.
"Ship operating costs increased by an average of 2.1 percent across all the main ship types in 2011, and it is unsurprising that our latest survey anticipates that costs will rise by a greater margin in both 2012 and 2013," Moore Stephens shipping partner Richard Greiner said.
"Although they will be difficult for owners, operators and managers to absorb in a struggling economic environment and a depressed freight market, these increases still represent a continuation of less volatile cost movements than those we saw just a few years ago."
"With crude oil prices hardening, lube costs will go up," one survey participant said in the survey. "Fuel and lube suppliers are very aware that there is an oversupply of tonnage on the market, and take advantage of that in their dealings with owners," said another.
The shipping sector has been hit hard by high bunker fuel prices and overcapacity, and the dry bulk sector has been among those most impacted.
"We expect 2012 (dry bulk) fleet growth to be around 14 percent, which is still well above demand growth; however, we look for 2013 fleet growth to be only around 5 percent to 6 percent," said Natasha Boyden with Global Hunter Securities. "However, we believe that it will still take some time for demand to catch up with the excess capacity delivered in the past few years, so we don't expect any meaningful recovery until toward the end of 2013, or 2014 at the earliest."
Recently, average earnings for a larger capesize dry bulk hauler have reached nearly $17,000 a day, although still less than the highest rate of over $230,000 a day in 2008.
Average earnings for a crude oil supertanker have dropped to a negative rate of less than $2,000 a day, which is below operating costs of $10,000 to $11,000 a day and the highest rate of more than $180,000 a day in 2008.
For more of the Reuters story: reuters.com
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