Cost index for domestic sea transport, Q3 2010

Despite the strong growth in fuel costs, total costs increased by a mere 5.8 per cent. The reason being that all other costs rose substantially less than that of fuel.

Steady rise in fuel costs

Costs are divided into seven groups, which are also presented as sub indices. Fuel represents around 20 per cent of total costs, depending on vessel type. Fuel costs rose steadily from the 2nd quarter of 2009 through the 2nd quarter of 2010, and then levelled out in the 3rd quarter of 2010. Annual growth rates in the sub index for fuel were 20.6 and 17.1 per cent in the 2nd and 3rd quarters of 2010 respectively.

Cost from debt going up

The sub index for capital cost of financing was at its lowest level in the 3rd quarter of 2009. Cost of financing is based on 3-month nominal NIBOR (Norwegian Inter Bank Offered Rate) from Norges Bank, which in this quarter was at 1.89 per cent. In the 3rd quarter of 2010, the sub index is at 108.1, compared to 88.9 in the same quarter of the previous year. This is an annual growth in the cost of financing of 21.6 per cent. This increase affects total costs much less than fuel due to its low share of total costs. This share is around 5 per cent depending on vessel type.

Largest cost increase for freight vessels

Sub indices are presented for six different kinds of vessel. These are ferries, passenger boats (small and large), cruise ships, tugs and freight vessels. Total costs for ferries increased by 6.0 per cent from the 3rd quarter of 2009 through the 3rd quarter of 2010. Freight vessels saw an increased cost of 6.2 per cent in the same period.

Tables:

• Table 1 Costindices domestic sea transport, 3rd quarter 2010. 2nd quarter 2009=100