Daily operating costs include the cost of Crew, Spare Parts, Insurance. The expenses of Drydocking and Special Survey are also operating costs. Always remember to check if daily operating expense quoted is including provision for DD/SS.
For financial analysis and modelling of ship investments, the cost of off-hire should also take into account.
For ships on time-charter, the charterer pays bunkers. For vessels on bareboat charter (ship lease), the shipowner does not pay operating expense.
Great attention is paid to the opex number, sometimes at the expense of what matters most;
- to keep the ship operating to ensure safe and uninterrupted performance of the ship as an earnings-generating asset;
- to preserve the quality of the ship in a cost-efficient way;
- to maximize the value of the vessel when sold.
Opex is not the most critical number in terms of investment performance. The IRR of a ship investment is not highly sensitive to higher / lower ship operating expenses within a small margin.
The overall cash flow is what matters, and in this context, it is vital to keep the ship operating expenses under tight control without impairing the value of the vessel.
Moore Maritime Index provides online data as a benchmarking tool for all major vessels’ operating costs.