The ship industry includes all forms of shipping, particularly larger ships such as oil tankers, bulk, chemical and cryogenic ships. Such ships:
- Are technically simple, although liquid natural gas (LNG) tankers require specialist metallurgy and refrigeration systems
- Contain significant equipment and material which may need to be imported
- Generate revenues from time charters or the spot market.
- Are relatively easy to finance if the ships are dedicated to a project on a long-term time charter, not otherwise
- Are subject to operating costs mainly consisting of the fuel (usually marine diesel).
- Are dry docked at regular intervals, usually every two to three years during which time the ships incur the costs of dry docking and do not generate any revenues. The length and cost of the dry docking may increase over the life of the ship.
- Are registered in a country where taxes are low or non-existent and where regulations allow ships to be manned by foreign and usually cheaper labour (flags of convenience such as Panama or Liberia).
- Are subject to little or no taxation calculations.
How Promoter handles Shipping Projects
Promoter handles the following type of ships:
- LNG (liquefied natural gas)
- Crude Oil (ULCC, VLCC, SuezMax, Aframax)
- Product Tankers (including Methanol)
It takes into account the dry docking costs and loss of earnings.
The user places key coordinates so that Promoter can illustrate the shipping route.
Typical Project Cash Flows
A ship typically has to be dry docked every two to three years for major maintenance. This reduces the revenues for the appropriate period and increases the costs. The cash flows are typically as above. the length and cost of the dry docking may increase over the life of the ship. The main operating cost is typically the fuel (usually marine diesel).