future cost of shipping presentation

8/8/2019 Future Cost of Shipping Presentation

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eminar Presentation oneminar Presentation onossible hike in theossible hike in theuture costuture costnd Impact on maritimend Impact on maritimetransportransport

SARATH CHANDRAN PR310210017


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LASSIFICATION OF SHIPPINGCOST perating Cost oyage Cost apital Cost argo Handling Cost


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NIT COST AND ECONOMIES OF SCALE=C tm

ere= ost per DWT per annum= Operating cost per annum= Voyage cost per annum=C Cargo handling cost per annum

= apital cost per annum=T Ship dead weight= year= ship


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PERATING COSTOCtm = Mtm + STtm + MNtm + Itm + ADtmhere as

= Manning=T Stores=N Repairs and

maintenance= Insurance=D Administration


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ANNING COST ,t includes wages and salaries social, ,nsurance pensions victuals and crew travel

.nd repatriation expenses evel of manning cost determined by two

;actors Size of the crew and the variousirect and indirect cost associated with

.mployment dvancement of technology has declined the.rew numbers anning scale is determined by the type and

.ize of ships


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STORES t includes consumable supplies such as

,pare parts deck and engine room equipment.nd lubrication oil

ubricating oil is the most important.ingle item


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EPAIRS AND MAINTENANCE outine maintenance : Engine room and auxiliary

,equipment painting superstructure and dry docking for hull

.maintenance

lassification survey : In order to obtain the certificate of sea worthiness dry dock survey has to be

.conducted Survey of older ships requires considerable

.expense

Breakdowns : Mechanical failure may results inadditional cost outside those covered under routine

.maintainace


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INSURANCE high proportions marine insurance cost is

etermined by the insurance of the hull and& .achinery and P I insurance

&actor determining the H M insurance are .wner s claim records and claimed value of vessel aluation fluctuates according to the freight

.arket and the age and condition of the vessel evel of premium will be determined by claim

, , ,ecords intended trading area cargo carried


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ADMINISTRATION ncludes shore based administrative and

anagement charges .epends upon the type of operation

OperatingCost

EU Flag % Total Others % Total

Manning* 1,010 53 840 46

Stores 195 10 230 12

Repairs 270 14 340 18

Insurance 220 11 230 12

Administration

215 11 200 11

TOC 1,910 100 1,840 100

PERATING COST OF PANAMA BULK CARRIER

* ssuming Crew of 28 :ource Drewry Shipping consultn US000


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OYAGE COSTVoyage cost refers to variables cost incurred in

. ,undertaking a particular voyage It includes fuel cost

, .port dues tugs and pilotage and canal charges

UEL COST .It includes charges for bunker oil and diesel oil

.It is the single most important thing in voyage cost

, .Fuel cost is very volatile in relation to the oil prices , ,Fuel consumption depends on its design type speed and

.hull condition


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ORT CHARGES :Includes two components Port dues and Service charges

.Port dues includes docking and wharfage charges Its

, /calculated on the basis of Volume of cargo GRT NRT of the

.vessel

,Service charges include pilotage towage and cargo

.handling ANAL CHARGESMain canal dues payable are for transiting through

.Suez and Panama canalIts calculated either by SCNT or SDR method in Suez

.canal

In Panama Canal its calculated by Flat rate charge per

.PCNT


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ARGO HANDLING COSTHC tm = tm + IS tm + L tm

=HC Cargo handling cost= Cargo loading charges

=IS Cargo discharging cost=L Cargo claims


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HE IMPACT OF RISING FUEL COST ONSHIPPING -Shipping cost between China US trade had tripled since

2000 and would further escalate with oil prices heading

.towards US$200 per barrel

Increase in cost of Manufactured products which are

%highly sensitive to shipping costs where oil makes up 50.of the freight cost

Imposing ancillary charges in addition to base freight

charge to recover rising or constantly fluctuating costs

.that are beyond carriers control


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RENT CRUDE OIL PRICES AND CONTAINER FREIGHT RATES ON THE-AIN EAST WEST CONTAINER ROUTES

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ifferent rates for specific goods and general.argo .ongestion charges at busy ports ( ),urrency adjustment factor CAF to take account

-f exchange rate changes during the journeyhipping costs are usually calculated and quoted.n US dollars

( ) ,unker adjustment factor BAF to take account.f fuel price fluctuation ( )urcharges like a security surcharge levied by

/orts and or by the shipping company to cover the.osts of particular regulatory regimes

OLLOWING FACTOR CREATE IMPACT ON SHIPPINGINDUSTRY

future cost of shipping presentation

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