{"id":1293,"date":"2022-08-09T13:31:34","date_gmt":"2022-08-09T04:31:34","guid":{"rendered":"https:\/\/www.eclsm.co.jp\/article\/preparation-vessels\/"},"modified":"2022-08-09T13:31:34","modified_gmt":"2022-08-09T04:31:34","slug":"preparation-vessels","status":"publish","type":"article","link":"https:\/\/www.eclsm.co.jp\/?article=preparation-vessels","title":{"rendered":"Preparation vessels"},"content":{"rendered":"

Today I am going to talk to you about the preparation <\/span><\/span>of vessels.<\/span><\/span><\/p>\n

\n

\u00a0<\/span><\/span>In the previous episode, we talked about three ways to prepare a vessel.<\/span><\/span><\/p>\n

They are called shipbuilding, purchasing and chartering.<\/span><\/span><\/p>\n

\u00a0<\/p>\n

In this episode, I will go into further details.<\/span><\/span><\/p>\n

I would like to talk about owning and leasing a vessel.<\/span><\/p>\n

\u00a0<\/p>\n

Shipbuilding is to build a new vessel at a shipyard and own it.<\/span><\/p>\n

Purchasing is to buy\u00a0<\/span>an<\/span>\u00a0used vessel from Owner and own it.
<\/span><\/span><\/p>\n

Leasing is to charter a ship from Owner for a contract period.<\/span><\/span><\/p>\n

\u00a0<\/p>\n

\"\"<\/p>\n

\u00a0<\/p>\n

We will talk about the breakdown of costs when owning and Leasing a vessel.<\/span><\/p>\n

Shipbuilding and Purchasing means to own Vessels.<\/span><\/span><\/p>\n

\u00a0<\/p>\n

\"\"<\/p>\n

\u00a0<\/p>\n

When owned, Vessels are appropriated as a depreciable asset and so the cost of<\/span><\/span><\/p>\n

purchasing Vessels are split by the depreciation period and the depreciation<\/span><\/span><\/p>\n

expenses are calculated.<\/span><\/span><\/p>\n


In addition, ship management costs are needed which consist of maintenance,\u00a0<\/span><\/span><\/p>\n

crew, repair and Ship Manager costs. Depreciation expense and <\/span><\/p>\n

Ship management cost determine Vessel cost.<\/span><\/span><\/p>\n


On the other hand, Leasing is to charter Vessels and its cost will be fixed<\/span><\/span><\/p>\n

during the process of negotiation with Owner. The lease fee is a price index<\/span><\/span><\/p>\n

in Chartering Market and the market price determines Vessel cost.<\/span>
<\/span><\/span><\/p>\n

\u00a0<\/p>\n

Today’s summary is;<\/span><\/span><\/p>\n


Preparation of Vessels consists of 3 ways, they are shipbuilding, purchasing,<\/span><\/span><\/span><\/p>\n

and chartering.<\/span><\/span>Shipbuilding and Purchasing means to own a Vessel. The cost of<\/span><\/span><\/span><\/p>\n

an owned vessel is depreciation expense and Ship management costs.\u00a0<\/span><\/span><\/span><\/p>\n

Leasing means to charter Vessel and the Charter Hire is Market Price in Chartering\u00a0<\/span><\/span><\/span>Market.\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

In general, when comparing Vessel cost, Owning is cheaper than Chartering.\u00a0<\/span><\/p>\n

Because the owner’s<\/span>\u00a0profit is always added\u00a0<\/span>to the<\/span>\u00a0leasing fee.\u00a0<\/span><\/span><\/p>\n

\"\"<\/span><\/span><\/p>\n

But in terms of\u00a0<\/span><\/span>risks<\/span><\/span>between Owning and Chartering, Chartering is less risky. <\/span><\/span><\/p>\n

Because if cargo\u00a0<\/span><\/span>volume decreases,\u00a0<\/span>the Charterer<\/span>\u00a0can return the vessel to Owner flexibly.\u00a0<\/span><\/p>\n

\u00a0<\/p>\n

\"\"<\/p>\n<\/div>\n

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\n<\/i>
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