'With major economies staggering to get back on their feet and emerging economies finding theirs, the trading environment for vessel operators has been extremely difficult,' Drewry said in a statement. 'Operating costs have therefore taken on a greater significance in the pursuit of business survival, with repair and maintenance, personnel and administration — the softer targets — taking center stage. If owners and operators timed their contract negotiations well, they will not have been hit by increased lube and steel prices. However, the less forward thinking or plain unlucky will in 2010 have experienced increases in repairs and maintenance and lubes. Without a degree of currency hedging, they may have been hit by a double-whammy.'
The survey covers eight ship sectors (oil tankers, chemical tankers, gas carriers, dry bulk vessels, container vessels, roll-on/roll-off, general cargo and reefer vessels) and 35 vessels sizes.
The report finds that manning costs are likely to increase this year after flattening out in 2008 and 2009 as global economic growth stalled. Lube supply is decreasing 'as the number of refineries producing these products has fallen to a mere handful. The savvy contract negotiators will win out by having secured their supplies; the laggers will have a problem.'
Meanwhile, in terms of maintenance, 'fleet owners have been reducing maintenance schedules as much as they dare, but the rising cost of raw materials — crude oil and therefore paints, coatings, etc., is forcing general maintenance costs up.'
'Last year saw a retrenchment in the costs of running fleets, the signs are pointing to an upsurge in 2010-11,' said Paula Puszet, managing editor of the report. 'The key message being that if owners and managers do not have contracts, particularly for items such fuel and lubes and repairs and maintenance, they could find their budgets blown to the four winds.”
