Vessel running costs are dropping says Frontline CEO

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Vessel running costs are falling and could be as much as 5% lower than they were at the height of the economic crash in 2008, according to Jens Martin Jensen, CEO of  the management arm of leading independent tanker owner Frontline.

While shipowners still have to pay for good and experienced crews, the wage spiral that crippled the shipping industry and led to mass poaching of valuable sea staff one to two years ago has also been put on hold with across the board wage levels “flattening out”, he told SMI.

“Dry dockings and repair are going down, salaries are flattening out and insurance costs are also flattening out and even lub oil costs are dropping a little bit. You could see a small 3%-5% drop in running costs over those seen in 2008. With 85 ships in a fleet, 3%-4% is a lot of money,” he said.