Cost of Idle Oil tankers

Shipping vessel are constructed to remain on the move and the cost of idle oil tankers could run in to the tens of thousands per day for a empty vessel and even higher for a oil tanker that is loaded with crude oil and sitting idle due to mechanical failure or technical difficulty.

Shipping companies incur heavy losses in terms of the cost of idle oil tankers that average between US$25,000 to 30000 per day for empty idle oil tankers and the amount could raise rapidly if the vessel were to stop sailing for any mechanical or technical error when loaded with crude oil while on transit. To avoid this from happening ship manufacturers put in place backup systems that assist the vessel to remain on course, so as to deliver the cargo and receive quick repair or maintenance to damaged components.

These huge costs incurred are also responsible for the universal components commonly found on oil tanker and other cargo vessels. Having vessel parts that interchange or are easily available greatly reduces time spent on maintenance thus helping reduce stationary costs a vessel must incur when idle. This rule has been adopted by many commercial vessels where main engines and other major components are regulated so as to ensure easy availability around the world and at all times.

Double backup of the main engine as well as generators and many other accessories found on board a vessel help make the vessel continue sailing even after one of the engines or generators has failed thus no or minimal loss of time is incurred during the voyage. As mentioned above the cost of idle oil tankers loaded with cargo during a voltage could raise substantially, this is due to the following factors:

International market prices: cost of most commodities usually depends on the international market. This market is not fixed and prices fluctuate on a daily basis, which could lead to either to raising or lowering of prices during a voyage. For this reason commodity buyers require to work on a tight time line which would minimize the time spent on voyage thus reducing the waiting period for the cargo to be delivered. In the same way the commodity could depreciate it could also appreciate making it more profitable for the owner of the cargo.

Perishable cargo: this cargo is sensitive to spoilage and some require proper refrigeration facilities or controlled temperature atmospheres. They also carry more risk for the vessel since any mechanical failure could result in spoilage and total loss for the cargo owner. In these cases the cargo owner ensures the cargo where by the insurer inspects the vessel to make sure that it is capable of the task. In case of any mechanical or technical failure the vessel owner must pay for the losses incurred to the damaged cargo.

oil tankers stranded in ice

The above points contribute the most towards the charges placed on a vessel idle at sea but other factors such as age of the vessel, shipping dangers and some more contribute both in favor of the vessel or cargo owner. The cost of idle oil tankers is not always paid by the vessel owner but in some cases the vessel insurer is expected to pick up the tab especially if an insured or guaranteed component fails in which case the insurer must pay the cost of delay of losses to both the cargo owner and vessel owners

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