Inflation in ship operating costs accelerated in 2022 due to price pressures, despite the decline in Covid-19-related costs, according to the latest ship operating costs report, Annual Report 2022/23, published by global shipping consultancy Drewry.

“Drewry estimates that average daily operating costs for the 47 different ship types and sizes covered in the report increased for the fifth consecutive year to $7,474 by 2022, a 2.2 percent increase compared to a much larger "smaller increase from 1.3 percent last year and a pre-pandemic trend of flattening or falling costs. While broader price pressures remain, shipping inflation is expected to moderate in the medium term."

Much of the opex surge in 2022 was due to lube oil costs, which rose 15 percent due to limited refinery supply and high oil prices. Costs also rose for marine insurance, which rose an average of 8 percent, after rising 7 percent in 2021, driven by a hardening insurance market and higher ship values ​​in some sectors that pushed up H&M premiums, the report said.

“Opex surge was mainly driven by price inflation in shipping goods and services and supply chain disruption caused by the Covid-19 pandemic,” said Latifat Igbinosun, head of opex ships research, Drewry. “Cost inflation was contained last year, especially for repairs and maintenance, as owners took advantage of the resumption of trade growth and rising ship revenues to keep ships in service longer. However, this year ships returned to yards, driving costs up. went."

Drewry expects downward cost pressures to persist in those areas where shipowners have more control, but tightening seafarers' availability and ongoing decarbonisation regulations are expected to hurt owners' costs in the medium term. increase.

“The outlook for ship operating costs remains uncertain, given ongoing geopolitical risks, rising inflationary pressures and the deteriorating economic outlook,” added Igbinosun. "But Drewry predicts some moderation in opex inflation as pressures on certain cost items, such as marine insurance and dry docks, ease, despite the risk of rising seafarers' wage costs in the face of an looming officer shortage."