The Factors to be considered before placing a container ship in trade.

Service Costs

Distance of round trip
Service frequency
Port of calls in round voyage
Average on operating speed ( Knots)
Days at port
Days at Sea
Days per port of call
Total voyage time
Outward voyage cargo capacity utilization
Return voyage cargo capacity utilization
Container shipped outward ( TEU )
Container Shipped Inward ( TEU )
Annual Tansport Capacity ( TEU )

Ship  Costs

Operation costs ( $ per Day )
Capital value of a ship ( Million Dollars )
Depriciation value of the ship over period
Intrest rate of Ship (% per annum )
Fuel consumptions ( Tons per day )
Bunker price $ per ton
Bunker cost ( $ per day )
Unit costs per TEU

Port Charges

Port costs per TEU
Port costs per port of call
Cargo handling charges in port

Container operations

Capacity percentage of twenty ft. container in ship
Capacity percentage of forty ft. container in ship
Capacity percentage of refrigirated container in ship
Number of units on full Vessel
Container turn around time ( Days per voyage )
Empty container repositioning percentage

Container costs

Container costs ( $/TEU/day)
Maintainance and repair ( $/box/voyage)
Terminal costs for container handling ($/Lift)
Refrigiration costs for reefer container ($/TEU)
Trans-shipment ($/TEU)
Inland Intermodal Transport costs ($/TEU)
Interzone repositioning ( $/TEU)
Cargo Claims ( $/container / voyage )

Administration costs

Administrative productivity (TEU / Employee )
Number of employees required
Cost per employee per annum
Cost per TEU

For better yielding over the life of the vessel , each factor should be analysed briefly before placing a container on trade. Many of the cost in will float over period of time. Approximate prediction is the key point of achieving and it requires special knowledge and talent in this field.


One thought on “The Factors to be considered before placing a container ship in trade.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s