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French frigate escort. Photo: EUNAVFOR

A French frigate participating in operation EUNAVFOR ASPIDES . supports commercial vessels in the Red Sea and in the Gulf of Aden. Photo: EUNAVFOR

Red Sea Crisis Pushes Shipping Stores and Spares Costs Higher

Mike Schuler
Total Views: 1567
January 27, 2025

The maritime industry has experienced mounting cost pressures in the past year as vessels reroute around Africa due to Red Sea security concerns.

Shipping industry analysts at Drewry report that vessels avoiding the Bab-al-Mandab strait in favor of the Cape of Good Hope route not only adds to increased tonne-miles, but the shift in established trade routes has also led to significant procurement challenges for stores and spares items. With the Port of Suez no longer serving as a primary procurement hub, operators must rely on South African ports, where costs are substantially higher.

The maritime research firm’s data shows stores and spares cost increases of 5.4% and 5.5% respectively across the global vessel fleet in 2024. However, Drewry notes these increases cannot be attributed solely to the re-routing situation.

According to Drewry’s research, this cost escalation is also part of a larger pattern following a period of deferred maintenance and procurement. While prices have moderated somewhat from their 2021/22 highs, the ongoing shipbuilding boom continues to exert upward pressure on costs.

The research firm’s analysts caution that current geopolitical tensions and new regulations could worsen supply chain constraints, potentially leading to even higher operating costs.

Drewry’s insights are detailed its Ship Operating Costs 2024/25 report, which provides comprehensive analysis across 47 vessel types, from container ships to bulk carriers and tankers, examining critical cost elements including manning, insurance, stores and spares, and maintenance.

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