Task:
Please define the cost allocation keys in sea transport business.
Think about owning a ship, but are not operating it efficiently and effectively so that your costs are always much more than your revenues. What will be your solution? What if you decide to charter your vessel? Please consider chartering types as well.
Costs in sea transport depends on :
1- Kind of carriage ( bulk or container)
2- Size of the ship
3- Size of the fleet
4- Time spent on the sea
5- Time spent at the port
6- Liner or tramp services
7- Shipments ( cargos)
Costs can be classified under three major titles:
1- Costs that caused by owning the ships
a- Capital
b- Insurance
c- Maintenance and repair
d- Survey and inspection
2- Costs that caused by the voyage
a- Crew
b- Fuel and oil
c- Equipments and spare parts
d- Loading/unloading - Terminal handling
e- Port
3- Other
a- Agency commision
b- Cargo insurance etc...