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What are running costs (or vessel operating expenses)?

The costs of keeping the ship in an operable condition, including costs of surveys, repairs and maintenance (including drydocking), hull and machinery and P&I insurance premiums, crewing, provisions, stores, water and lubricating oil. 

Just as a truck owner has to pay the costs of keeping his vehicle roadworthy and ready for hire, a shipowner has to pay his ship’s running costs to keep her seaworthy and ready for a charter or other employment. A shipowner knows the daily vessel operating expenses for each of his ships.

 

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