SHIPS’ COST CLASSIFICATION
The three basic ship cost categories are:
• capital costs;
• voyage costs;
• operating or running costs.
• Capital costs
- are fixed costs associated with the ship’s purchase.
- include pre-delivery costs, loan repayments, interest, leasing charges, initial registration fees, and taxes (sometimes), and any bareboat charter hire payable.
- are the owner’s responsibility.
• Voyage costs
- are variable costs associated with the commercial employment of the ship?
- include costs of bunkers, port and canal dues, pilotage, tug hire, agency fees and loading/discharge costs.
- are the responsibility of the ship’s commercial operator. If the ship is let on a time charter, the charterer is liable for the voyage costs.
• Operating or running costs
- are semi-variable costs which fall between capital and voyage costs?
- include costs of crewing, storing, ship maintenance, insurance and administration.
- are the responsibility of the ship owner or manager.