What are the costs associated with managing ships?

The costs associated with managing ships commonly fall into three (3) categories: 1- Ship Fixed Costs (Ship Capital Costs): Ship Fixed Costs are associated with the purchase of a ship and Ship Fixed Costs are deemed to be entirely within the control of the shipowner.

What are ship fixed costs?

1- Ship Fixed Costs (Ship Capital Costs): Ship Fixed Costs are associated with the purchase of a ship and Ship Fixed Costs are deemed to be entirely within the control of the shipowner. Ship Fixed Costs could include pre-delivery expenses, loan repayments and interest, leasing charges, initial ship registration fees, and in certain cases, taxes.

What are ship voyage costs?

3- Ship Voyage Costs: Ship Voyage Costs are variable costs associated with the particular employment in which the ship is engaged from time to time. Particularly, Ship Voyage Costs include bunkers, port and canal charges, pilotage, harbor tug hire, port agency fees, and any loading and discharging expenses.

What is included in ship operating costs?

Included in Ship Operating Costs are the crewing, storing, maintenance, insurance, and administration of the ship. 3- Ship Voyage Costs: Ship Voyage Costs are variable costs associated with the particular employment in which the ship is engaged from time to time.