Global cargo fleet’s OPEX hits $100billion mark

Global ship operating expenses (OPEX) for the world’s cargo fleet have breached $100 billion mark for the first time in history.

The maritime intelligence provider, Clarksons Research, in its latest report said the OPEX rose from $98 billion last year, and $83 billion in 2008.

According to Clarksons, crew wages remained the largest constituent in the total expenses reaching $43 billion, which were distributed to 1.4 million crewmembers across the fleet.

Management fees are in the second place claiming a $9.2 billion portion of the OPEX total, followed by repairs with $7.7 billion, spares $7 billion, stores and lubricants about $5 billion respectively.

Furthermore, $4.6 billion went to insurance, while $3.4 billion on protection and indemnity (P&I) , and provisions of $3.2 billion. A total of $4.3 billion was allotted for sundries, and $6.9 billion for other crew costs.

Shipping industry players are under a lot of pressure to reduce costs across the board in order to remain competitive, especially after the past couple of years that saw losses in offshore sector, container and dry bulk, and now spreading into the tanker sector.

“Getting smarter, collecting and using ‘big data’ and technolog, and automation are all gaining traction. The industry’s fuel bill (accounted for outside of OPEX) is clearly a big target,” Clarksons said.

“These will all require new technology, skills and perhaps new accounting approaches,” it noted.