NEWS & ANALYSISSHIP OP COSTSCarnival Corp. Ship Operating Costs Clearing the Air; Saving BillionsDecline SlightlyWhile fuel costs are enjoying a mod-While conventional wisdom suggests erate break at the moment, overwhelm-that costs rise in step with time, it ap-ing consensus regarding future energy pears that ship owners and manager, cost trends is nowhere but up, particu-faced with historically tight markets, larly as increasingly stringent emission continue to defy conventional wisdom as total annual operating costs in the rules kick-in globally over the next shipping industry fell by an average of seven years. To that end, industry lead-0.3% in 2013, on the heels of a 1.8% ers such a as Carnival Corp. are making decline the previous year. Crew costs strategic plans now, such as its recently was the only category this time to show announced multiyear Fuel Conserva-an increase over the 12 month period, tion Program that the company said is indicating that ship owners continued to expected to save more than one billion focus on managing costs and conserving gallons of fuel and $2.5 billion in fuel cash in 2013.costs, while reducing carbon emissions itineraries, sig- ef? cient ways to The ? ndings published in OpCost by 12 billion kilograms by the end of ni? cantly re- produce water, in-2014, Moore Stephens’ ship operating 2014; it ? eet of more than 100 ships ducing energy cluding better use costs benchmarking tool, which reveals will see 24 percent improvement in fuel and fuel con- of engine heat to that total operating costs for the tanker ef? ciency from 2007 through 2014. sumption. convert sea wa-sector were up in 2013, the ? nancial Carnival Corporation & plc released ter to fresh water year covered by the study, but down in the results of its multiyear Fleet Fuel • Hull coat- and installation the bulker and container ship sectors. Conservation Program that states by ings: Using of reverse osmo-The tanker index was up by 2 points, or the end of 2014 the cruise company new hull coat- sis systems.1.1%, while both the bulker index and will have saved more than one billion ings and clean-the container ship index were down by 2 gallons of fuel and reduced ? eet carbon ing technologies to • Education & Train-points, or 1.2%, on a year-on-year basis. emissions by 12 billion kg over a seven minimize the growth ing: Increasing onboard In addition:year period. of marine organisms that energy use awareness among • There was a 0.2% overall average rise create drag on the hull, which of? cers, crew and guests.in 2013 crew costs compared to the How Carnival Did It ... reduces the amount of fuel needed to New ship builds also drive signi? -2012 ? gure, which itself was 0.2% down Carnival Corporation’s Fleet Fuel move the ship through water. cant improvements in ? eet fuel ef? -on 2011. (By way of comparison, the 2008 report revealed a 21% increase in Conservation Program combines en- ciency through energy-saving innova-this category.) ergy-saving programs onboard current • Air conditioning: Installing new, en- tions that are designed directly into the • Tankers overall experienced an in-ships with new energy-ef? cient ship ergy-ef? cient A/C systems to help re- new vessels. crease in crew costs of 1.8% on average, designs to reduce energy consumption duce the energy used to cool the ships, By adding more than 30 new ships compared to the 2.3% fall recorded in and boost fuel ef? ciency across its ? eet which is the second largest consumer to its ? eet since 2007, Carnival Cor-2012. Within the tanker sector, Handy-of more than 100 ships. of onboard energy after propulsion. poration has capitalized on the latest size product tankers reported an overall Since cruise ships generate their advances in energy ef? ciency, includ-increase of 3.3% in crew costs. own electricity from fuel, Carnival • Lighting: Replacing traditional light- ing building larger ships with highly • For bulkers, the overall average fall in set out to uncover every feasible way ing with more ef? cient LED bulbs is ef? cient propulsion systems that in-crew costs was 0.5%, the same as in the to reduce onboard energy usage and an ongoing opportunity to save energy, corporate new computer-modeled hull previous year. The operators of Panamax launched several key conserva- as the company continues the designs and the latest in fuel-ef? cient bulkers paid 2.3% less in crew costs than tion initiatives since 2007 process of replacing four propeller and engine combinations.in 2012, but there was a 1.2% increase that have driven the million lights across Driven largely by its energy and fuel in this respect for Handysize bulkers, success of the Fleet the ? eet. conservation efforts, Carnival is now this following a 4.8% reduction for 2012. Fuel Conservation in a position to exceed its goal of a 20 Expenditure on crew costs remained un-Program. These • Water pro- percent reduction in carbon emissions changed over the 12 month period in the efforts include: duction: by 2015. Carnival Corporation is in-container ship sector.While pro- vesting as much as $400 million to de-• Expenditure on stores was down this • Propulsion: ducing 73% sign, build and install an industry-? rst time by 1.9% overall, compared to the Improving of water exhaust gas cleaning technology, called fall of 2.1% in 2012. how the ship used on- ECO-EGC, to more than 70 percent • There was an overall fall in repair and moves through board its of its ? eet. The system uses ? lters and maintenance costs of 0.4%, compared the water by ships, Carni- seawater to remove pollutants from to the 1.9% reduction recorded for 2012.• The overall drop in costs of 0.3% re-optimizing ship val is reduc- exhaust gases, signi? cantly advancing corded in respect of insurance compares speeds and cruise ing the rate of cleaner air quality for oceangoing ves-to the 6.2% fall recorded for 2012.distances to design onboard water us- sels.more fuel-ef? cient age and ? nding more 10 Maritime Reporter & Engineering News • NOVEMBER 2014MR #11 (10-17).indd 10 11/4/2014 10:01:34 AM