In Oslo this summer, the head of the Norwegian Shipowners Association noted that if all ships currently on order come into the market, the market will be depressed for years. From where you sit, what can we look for in the coming year regarding the laying up of ships?
It is important to understand that laying up a ship does not completely eliminate all technical expenditure. In fact, laying up in the wrong location or making mistakes in the de-commissioning and re-commissioning phases can be extremely costly. Arguably the most important rule to remember is this: Do not see ongoing lay-up costs in isolation from the expense of re-commissioning a vessel.
Laying-up a ship is never a satisfactory solution to a financial and commercial problem, but as containership owners are finding out right now, it is quite often the only solution available for the time being. Most ships laid up as a result of the current crisis are still in hot lay-up with a minimum safe manning level of crew remaining onboard. These ships can be recommission at relatively short notice after a comparatively short lay-up period, usually between two to six months. Cold or deep lay-up for more than a year is a different proposition altogether.
What considerations are paramount to ship owners/managers to ensure that ships are layed up, and subsequently ready to re-enter the market when
regulations, introduced by the entire spectrum from responsible, intelligent and knowledgeable regulators to eager, well- or not so well-meaning politicians. The future will hold more of the same, regardless of the state of the economy. In fact, it is getting worse � or better, depending on whose point of view one has. We have no choice: compliance is a must. There is no way around it. Shipmanagers have business sections and in some cases entire companies set up to deal with compliance.
What is the most efficient means for shipowners to cut costs today?
needed?
It is important to understand that laying up a ship does not completely eliminate all technical expenditure. In fact, laying up in the wrong location or making mistakes in the de-commissioning and recommissioning phases can be extremely costly. Arguably the most important rule to remember is this: Do not see ongoing lay-up costs in isolation from the expense of re-commissioning a vessel. Both need
to be looked at in combination, otherwise your budget could be way off the mark.
Can you give an overview of how the issue of keeping ships compliant has changed the business of owning and managing ships?
One of the main drivers of operating costs increases in recent years has been the continuous onslaught of international, national, state and local laws, rules and
There are many innovative ways to control operating costs. Here are some that come to mind right away: Critical spares warehousing, streamlined marine spares logistics, and the ability to exploit the cost savings potential buried in the commonality of machinery in a large technically managed fleet are all making enormous contributions.
October 2009
www.marinelink.com
25