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Smaller Operating Costs In Shipping Industry

Shipping adviser Moore Stephens has reported that the total operating costs for the tanker, bulker and container ship sectors were down in 2016.

The tanker index was down by 1.7%, the bulker index fell by 1.9% and the container ship index saw a decrease of 0.6%. 

“This is the fifth successive year-on-year reduction in overall ship operating costs, although the reduction this time is less than . . . [in] 2015,” Richard Greiner, Shipping & Transport Partner, said.

Although 2016 was a challenging year for shipping, according to the Moore Stephens Shipping Confidence Survey, the owners are more confident in making new investments, which “should logically lead to greater activity, which will mean higher operating costs.”

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According to the European Community Shipowners’ Associations (ECSA), the EU-Canada trade agreement will cut Customs duties and open new markets for shipping companies.

The Comprehensive Economic Trade Agreement (CETA) provisionally entered into force on September 21, after having been approved by EU member states and the European Parliament.

Niels Smedegaard, ECSA President, stated: “Shipping needs global trade to exist and global trade cannot exist without an efficient shipping industry. Around 80% of world trade in goods is carried by the international shipping industry and European shipowners control 40% of the world’s merchant fleet and operate shipping services all over the world. We also support the plan announced last week by President Juncker to set up a Group of Experts on EU Trade Agreements, and we would certainly be ready to provide our expertise on the matter.”