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Ship operating costs are rising faster than many businesses realise due to congestion and shoreside disputes, according to insurance company Strike Club.
The rate of increase in operating costs has more than doubled in the past year. Port congestion is adding directly to expenses and at the same time is creating waterfront tensions that are boiling over into walkouts.
An average increase of 8.5 percent in total operating costs last year was recently identified. The burden on the operation of handymax bulkers rose by 14.8 percent. Shipping operations during recent months had also been plagued by strikes and other triggers for delays.
The infrastructure bottlenecks at many ports and inland terminals are slowing down shipping trade, and uncertainty tends to foment industrial unrest, the insurer said. Increased pressure on dockers and other operators can also lead to costly accidents and delays.
CargonewsAsia
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