Understanding Cost of Operating a Ship

At Shipfinex, we believe that an educated owner is a confident owner. When you own a Maritime Asset Token (MAT), you are participating in the economics of a ship.

To evaluate an asset's performance, you must understand the costs that go into maintaining its value and longevity. In the maritime industry, these are known as Operating Expenditures (OPEX).

The Five Primary Cost Categories

Whether a ship is actively moving cargo or waiting at anchor, it incurs "Fixed" technical costs that are essential for its safety and compliance:

• Crewing (The Human Element): The largest cost category. This includes wages, benefits, travel, and insurance for 15–25 professional seafarers who operate the vessel 24/7.

• Maintenance & Spares: Continuous upkeep of the hull, engines, and deck machinery. Regular maintenance prevents costly unplanned downtime (known as "Off-Hire" periods).

• Insurance: Institutional-grade protection is mandatory. This includes Hull & Machinery (H&M) for physical damage and Protection & Indemnity (P&I) for third-party liabilities.

• Management Fees: Fees paid to specialized technical managers who oversee safety, regulatory compliance, and day-to-day operations.

• Stores & Lubricants: Consumables like engine oils, spare parts, and provisions that keep the "floating city" running.

Voyage vs. Technical Costs: Who Pays for Fuel?

A common question in our community is: "Who pays for the fuel (Bunkers)?" The answer depends on the chartering strategy we discussed in Newsletter 28:

• In a Time Charter: The client (the Charterer) typically assumes the cost of fuel and port charges. Your exposure as a token holder is primarily to the Fixed Technical OPEX listed above.

• In the Spot Market: The ship owner manages the fuel and port costs. While this adds "Variable" expenses, it often allows for higher revenue potential during market peaks.

Why Transparency is the Shipfinex Standard

Through tokenization, we have introduced a framework built on visibility and accountability:

• Audited Accountability: Every Ship Owning SPV is required to undergo independent maritime audits. This ensures that operating expenses are verified against industry standards.

• Performance Visibility: Through the Shipfinex dashboard, you have access to the vessel’s essential status and performance data, providing a direct link between the physical asset and your MATs.

The Bottom Line

Maintaining a ship to the highest standards is an investment. Efficient OPEX management preserves the residual value of the vessel and ensures it remains a "Blue Chip" asset for its entire 20+ year life.

At Shipfinex, institutional-grade transparency meets fractional ownership of ships.

Until next time,

Team Shipfinex