Ship operating costs: Current and future · PDF fileShip operating costs: Current and future...

PRECISE. PROVEN. PERFORMANCE.

Ship operating costs: Current and future trendsRichard Greiner, Moore Stephens LLPDecember 2013

Shipping

Introduction

• Richard Greiner is a partner in the shipping industry group and has more than 30 years’ experience in providing assurance and advisory services to the shipping industry.

• He is a regular speaker at shipping and ship finance conferences and seminars and has written articles and papers on shipping finance and accounts. Richard leads the Moore Stephens ship operating costs benchmarking report, OpCost.

richard.greiner@moorestephens.com

Overview

• Introduction to OpCost

• OpCost 2013 results

• Future cost trends

• OpCost online

OpCost features

• Vessel operating cost benchmarking tool

• 26 vessel types:

– Including 5 Bulker, 12 Tanker and 3 Container ship types

• 12 cost categories:

– Including crew costs, stores, repairs & maintenance and insurance as well as dry-docking

• Over 2,650 vessels in OpCost 2013 database

• Exclusive to Moore Stephens

OpCost 2013 results

• OpCost indices (by sector)

• Daily running cost rates (by vessel type)

• Analysis of:

– Crew costs

– Stores

– Repairs and maintenance

– Insurance

• Drydock

OpCost indices

Total operating costs 2012:2011

Source: Moore Stephens OpCost 2013

Operating costs – Bulker

OpCost 2013

Daily Rate US$

Year on year

change (%)

Handysize 5,271 -1.3

Handymax 5,831 -3.1

Panamax 6,265 -5.2

Capesize 7,433 -4.2

Weighted average -3.9%

Source: Moore Stephens OpCost 2013

Operating costs – Tanker

OpCost 2013

Daily Rate US$

Year on year

change (%)

Product 7,995 -4.5

Handysize Product 7,747 -1.0

Panamax 8,459 0.5

Aframax 8,172 -4.0

Suezmax 9,262 -4.3

VLCC 10,350 -4.0

Weighted average -2.7%

Source: Moore Stephens OpCost 2013

Operating costs – Container ship

OpCost 2013

Daily Rate US$

Year on year

change (%)

Feedermax (100-1,000 TEU) 4,453 -1.7

Container Ship (1,000-2,000 TEU) 5,310 -0.6

Main Liner (2,000-6,000 TEU) 7,513 -2.8

Weighted average -1.8%

Source: Moore Stephens OpCost 2013

OpCost crew costs indices

Source: Moore Stephens OpCost 2013

For tankers and bulkers 2000 equals 100, for containers 2002 equals 100

80

100

120

140

160

180

200

220

240

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Ind

ex

po

ints

Year

Bulker Tanker Container

Crew wages, provisions and crew other

-1.0%

-0.5%

-2.3%

OpCost stores indices

Source: Moore Stephens OpCost 2013

For tankers and bulkers 2000 equals 100, for containers 2002 equals 100

60

80

100

120

140

160

180

200

220

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Ind

ex

po

ints

Year

Bulker Tanker Container

Lubricants and stores other

-4.5%

-1.4%

-2.9%

OpCost repairs & maintenance indices

Source: Moore Stephens OpCost 2013

For tankers and bulkers 2000 equals 100, for containers 2002 equals 100

70

80

90

100

110

120

130

140

150

160

170

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Ind

ex

po

ints

Year

Bulker Tanker Container

Spares and other repairs

& maintenance-4.6%

-2.0%

-2.9%

OpCost insurance indices

Source: Moore Stephens OpCost 2013

For tankers and bulkers 2000 equals 100, for containers 2002 equals 100

80

100

120

140

160

180

200

220

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Ind

ex

po

ints

Year

Bulker Tanker Container

P&I and H&M

-8.9%

-1.5%

-7.0%

Drydock costs and duration

Source: Moore Stephens OpCost 2013

Drydock days (average)

OpCost 2013: A summary

• OpCost 2013 annual change (%):

– Bulker -3.9

– Tanker -2.7

– Container ship -1.8

• Annual average change (%):

– Bulker 4.8

– Tanker 5.2

– Container ship 5.3

OpCost 2014

• To be published September 2014

• Aiming for increased participation and more vessel types

• Ideas for new features welcome

Future operating costs survey

• Respondents

• Expected cost increases

• Influencing factors

Respondents by type

Source: Moore Stephens, 2013 Future operating costs survey

Respondents by location

Source: Moore Stephens, 2013 Future operating costs survey

Respondents by sector

Source: Moore Stephens, 2013 Future operating costs survey

Expected cost increases

2013

3.0%

2014

3.2%Overall – mean

Source: Moore Stephens, 2013 Future operating costs survey

Expected increases by cost type

2013

2.4%

2.1%

2.2%

1.9%

2.1%

2.3%

2.0%

2.4%

1.4%

2.1%

2014

2.5%

2.2%

2.2%

2.0%

2.3%

2.4%

2.3%

2.5%

1.7%

2.4%

Cost type – mean

Crew wages

Other crew

Lubricants

Stores

Spares

R&M

H&M

P&I

Management fees

Drydock

Source: Moore Stephens, 2013 Future operating costs survey

OpCost vs. Forecast survey

-5,0%

-4,0%

-3,0%

-2,0%

-1,0%

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

2010 2011 2012 2013 2014

Percentage change in overall operating costs (y-o-y)

OpCost vs. Forecast survey

OpCost

Forecast Survey

Factors influencing operating costs

Source: Moore Stephens, 2013 Future operating costs survey

2%

10%

13%

16%

18%

20%

21%

0% 5% 10% 15% 20% 25%

Other

Raw material costs

Labour costs

Demand trends

Competition

Crew supply

Finance costs

Most influential factors on vessel operating costs over next 12 months

OpCost online

• User friendly interface

• Interactive charting and data analysis

• Two licence levels

• More features in 2014

www.opcostonline.com

PRECISE. PROVEN. PERFORMANCE.

Ship operating costs: Current and future trendsRichard Greiner, Moore Stephens LLPDecember 2013

Shipping