The Baltic Exchange has launched a new assessment to track the cost of operating vessels. Initially covering a range of dry bulk vessels, the service will also be expanded to tankers and other sectors.
The Baltic Operating Expense Index (BOI) will be published quarterly and based on assessments from three leading independent third-party ship management companies: Anglo-Eastern, Columbia Shipmanagement and Fleet Management. Collectively they manage a fleet of over 1,800 vessels. Additional companies are expected to join the panel in the future and a residual price calculation added later this year.
Baltic Exchange Chief Executive Mark Jackson said:
“The Baltic Operating Expense Index is intended to provide transparency to the fluctuations in running costs. Daily operating costs are one of the variables used by shipping investors to calculate the profitability and residual value of their assets. We already provide independent freight, sale & purchase and recycling assessments. With the addition of operational expenses assessments, shipping investors now have a complete toolkit to manage their risk and aide their decision process.”
Each panel member will submit four numbers, expressed in USD per day. Three will be combined to produce the BOI:
- Crew (USD per day, including all fees)
- Technical ((USD per day, including all fees)
- Insurance (USD per day, including all fees and rebates)
The fourth, an assessment of a five year Drydock cost, will be amortised over five years to give a USD/day price, but published separately and will not contribute to BOI.
Assessments will be provided quarterly. Q4 2018 and Q1 and Q2 2019 assessments are available following a recent trial. Q3 2019 assessments will be published on 17 October. The assessments will be available on www.balticexchange.com to subscribers to Baltic Exchange market information services.
The vessels initially assessed are:
Capesize: 180,000 mt dwt built in “first class competitive yard”, 199,000cbm grain, LOA 290m, beam 45m, draft 18.2m SSW. Not ice classed, not scrubber fitted, 5 years old & special survey passed.
Panamax: 82,500 mt dwt built in “first class competitive yard”, 97,000cbm grain, LOA 229m, draft 14.43m. Not ice classed, not scrubber fitted, 5 years old & special survey passed.
Supramax: 58,328 mt dwt on 12.80m draft SSW built in “first class competitive yard”. LOA 189.99m, Beam 32.26m, 72,360 cbm grain, 5 holds/hatches, 4 x 30mt cranes with 4 x 12cbm grabs. Not ice classed, not scrubber fitted, 5 years old & special survey passed.
Handysize: 38,200mt dwt at draft 10.538m SSW, built in “first class competitive yard”, 47,125cbm grain, LOA 180m, beam 29.8m, 5 holds, 5 hatches, 4 x 30mt cranes. Not ice classed, not scrubber fitted, 5 years old & special survey passed.
Baltic OpEx Crew:
Value expressed in USD/Day:
Wages fully loaded (national costs, agency, overtime, standby)
Unions, Dues, ITF
Victualling and domestic provisions
Training, STCW requirements, in-lieu-of-cadets training cost (cadets not in standard complements)
All other Manning expenses other than Insurance
Manager’s Fees relating to crewing, or an apportionment
Baltic OpEx Technical:
Value expressed in USD/Day
Stores: Deck, Engine, Stewards’
Repairs: Deck, Electrical, Engine
Surveys, Flag, Class
Spares, transportation, clearances
Superintendent / technician travel and per diem / fees
Owners’ protective Agents, husbandry fees, launches
All other General Expenses and unrecoverables, other than Insurance
Manager’s Fees relating to technical, or an apportionment
Baltic OpEx Insurance:
Value expressed in USD/Day
Governing principle is inclusion of all cover required to present vessel for worldwide trading within IWL and excluding HRA
Hull and Machinery including Disbursements or Freight Interest Insurance
War and Strikes Risks
Protection and Indemnity including cargo, crew, third parties, stowaways, damage caused by vessel/FFO, pollution, wreck removal
Freight, Demurrage and Defence
Cost of Baltic standard deductible incidents per period, Manager’s Fees relating to managing Insurance, or an apportionment
Anglo-Eastern is a leading, independent, global provider of ship management services, with about 650 vessels under full technical management, over 200 under crew management, and a technical services division that has overseen some 450 new buildings and conversions to date.
Its managed fleet comprises all ship sizes and types, including bulk carriers, container ships, tankers (oil, gas and chemical), ice-class OBO, LPG FSO, semi-submersible heavy-lift carriers, pipe-layers and off-shore construction and support vessels.
Anglo-Eastern is headquartered in Hong Kong and conducts its ship management services through a network of more than 25 offices and specialist centres located across Asia, Europe and the Americas.
It has direct control in the recruitment, training and development of its pool of nearly 28,000 seafarers in India, the Philippines, Ukraine and China.
About Columbia Shipmanagement
Columbia Shipmanagement (CSM) was established in Limassol, Cyprus, in 1978. With over four decades of experience in managing all types of vessels, CSM has become a leading force in its field. With more than 380 vessels (approximately 50 of them Bulk Carriers) under full and crew management, Columbia is today one of the largest independent ship managers world-wide.
Columbia’s core ship management offices are located in Cyprus, Germany, Singapore and China, while two affiliated offices are located in Greece and Germany.
Through its strategic network of owned crewing agencies located in Europe, Russia and Asia, Columbia has direct access to highly qualified and experienced sea-going personnel. Our 14,500+ employees, on land and at sea, form the foundation upon which we have built our range of services from technical, crew and commercial management, to new building supervision, consulting and cruise vessel services.
Columbia is committed to providing its customers with competent, safe and environmentally sound and cost efficient services meeting best industry standards. At Columbia we believe in establishing firm long-term relationships with our clients, partners, and employees, treating each individual with proper respect and dignity. With high retention rates among our employees on-board and ashore, we are able to retain valuable accumulated experience for the ultimate benefit of our clients and their assets.
About Fleet Management
With a 25-year history, 500+ vessels, 20,000+ qualified seafarers and 850+ shore employees, Fleet Management Limited is one of the world’s largest independent third-party ship management companies. For the last 25 years, FLEET has pioneered many of the crewing, safety, and technical standards, which have become benchmarks in the industry.
With a strong compliance team internationally, we observe the industry’s highest standards for classification, flag state, and local environmental regulation. Today, all of our vessels under management are assured by the industry’s highest standards, which include ISO 9001, ISO 14001, OHSAS 18001, ISO 50001 and ISM code compliance certificates from DNV.
Headquartered in Hong Kong and supported by 25 offices in 12 countries, Fleet Management is dedicated to maintaining the asset value of our clients’. We ensure the vessels under our management are kept in optimal condition in terms of mechanics, technology and crew management – and in a state of operational readiness and compliance.
Fleet Management Limited is a proud subsidiary of The Caravel Group Limited – together we are dedicated to providing our clients first-class service with a wealth of knowledge and experience, and equally important, to expressing transparency, commitment, and integrity in our services and philosophy.