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Shipping Costs in Ocean Transport Industry

This chapter presents an analysis of shipping costs in the ocean transport industry. The term "shipping costs" refers to the operating costs of ocean transport companies. For purposes of this analysis, shipping (operating) costs are classified as fuel costs, crew costs, and maintenance and repair costs.

Operating costs represent a significant proportion of the total costs associated with an ocean shipping operation. Vessel operating costs, including fuel and depreciation may approximate 48.8 percent of total costs.

Operating costs tend to vary among vessel types, with the most significant variations between container vessels and bulk carriers. On average, operating costs for bulk carriers are halfagain as high as for container vessels.

Operating costs also vary according to the type of ocean shipping activity. For bulk dry cargo operations, operating costs account for approximately 73 percent of total costs. For combined dry and liquid bulk cargo operations, operating costs account for approximately twothirds of total costs. For cruise ship operations, operating costs account for approximately 51.6 percent of total costs. For integrated ocean shipping operations, operating costs account for approximately 64.3 percent of total costs. Within the fuel costs classification, subclassifications will cover the various types of fuel (oil, coal, and so forth) consumed in the operation of the various vessels in the fleet of an ocean shipping company, engine type, and other factors. Within the crew costs classification of operating costs, subclassifications cover such costs as (1) wages and salaries, (2) food service, (3) health care, (4) employmentrelated benefits, (5) employmentrelated taxes. Crew costs may be further categorized according to the various functions associated with the operation of a vessel at sea. Repair and maintenance costs will, in most instances, be subclassified into the vast array of function...

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Shipping Costs in Ocean Transport Industry. (1969, December 31). In LotsofEssays.com. Retrieved 11:11, April 21, 2019, from https://www.lotsofessays.com/viewpaper/1684544.html