Tradewinds: Berth of a Princess

“US-based Tusiani says the industry has experienced a rapid technological evolution, bringing huge savings for charterers without any extra cost to them. ‘The basic reasons are price stagnation and major improvements in propulsion and fuel efficiency,’ he says, noting that a 174,000-cbm vessel can be ordered today at just over $200m — the same price as a 155,000-cbm ship about five years ago. ‘Amazingly, though, the former can be anywhere between $25,000 and $50,000 per day more efficient.’ “Technological improvements will continue, ‘but today’s environment of low inflation and interest rates will not. Shipyard prices will rise, and — combined with the increased cost of vessel operations to assure quality and safety — so will charter rates.'”