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DUTIES OF FLAG STATES

SHIPS’ COST CLASSIFICATION

The three basic ship cost categories are:

• capital costs;

• voyage costs;

• operating or running costs.

• Capital costs

  1. are fixed costs associated with the ship’s purchase.
  2. include pre-delivery costs, loan repayments, interest, leasing charges, initial registration fees, and taxes (sometimes), and any bareboat charter hire payable.
  3. are the owner’s responsibility.

• Voyage costs

  1. are variable costs associated with the commercial employment of the ship?
  2. include costs of bunkers, port and canal dues, pilotage, tug hire, agency fees and loading/discharge costs.
  3. 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

  1. are semi-variable costs which fall between capital and voyage costs?
  2. include costs of crewing, storing, ship maintenance, insurance and administration.
  3. are the responsibility of the ship owner or manager.

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III CODE 2013

Methods of Anchoring