2. Ship operating costs
Technological advances have led to a continuous reduction in vessel operating costs over the decades.
Improved fuel efficiency, economies of scale, and automation in port operations all help to reduce
environmental and financial costs (see chapter 2).
However, the drive to invest in lower operating costs may have some negative repercussion on freight rates. For
example, as carriers invest in larger and more energyefficient vessels in the current market situation – to
achieve economies of scale or to improve fuel efficiency – they inadvertently also contribute to a further oversupply
of capacity. While the individual carrier may benefit from
cost savings from deploying bigger vessels, all carriers
bear the burden of the resulting oversupply and lower
freight levels – to the benefit of importers and exporters.