Page 396 - Invited Paper Session (IPS) - Volume 1

IPS173 Athanasios Petralias et al.
These fees typically depend on Gross/Net Tonnage or Length and duration of
stay. Duration of stay can be calculated either on basis of the commercial
databases (on basis of last arrival day and last sailed date by vessel), or use
average time in port, provided by the port.
To calculate Manning costs we attribute to each vessel, the expected
manning cost, depending on their type, deadweight and age, on basis of
Drewry data that have been cross-checked with International Transport
Workers’ federation “TCC” collective agreements. Commercial databases
provide for the majority of vessels total number of crew by nationality, as well
as number of officers and ratings. On basis of these data we calculate the
distribution of number of ratings and officers by ethnicity and vessel type. In
the final step we allocate the manning cost of each vessel to the respective
ethnicity, weighted by the ratio of the rates received by officers with respect
to rest of crew.
Drewry reports average vessels’ Insurance costs, Repair & Maintenance
costs, Dry docking costs, Stores, spares and lubricant oils costs, Flag state
expenses and Administrative costs by vessel type, deadweight and age. Thus,
the respective costs are attributed to the respective vessels in the registry.
Note that with respect to repairs, commercial databases indicate whether a
vessel is "In Casualty or Repairing" or "Converting/Rebuilding" and thus we
assign the respective Dry Docking costs to the port dry docking and repair
takes place.
Turning to the transactions between the Commercial Operator and the
Legal owner, management fees by type, size and age of vessel are obtained
from Drewry. Net freight earnings are paid by the Commercial Operator to the
legal owner (see Figure 1). We calculate net freight earnings, by subtracting
from the total freight revenues all the vessel’s expenses that are paid by the
commercial operator both inside the country and outside the country, i.e.
manning, insurance, stores, spares and oils, maintenance and drydocking
costs, flag and voluntary tax, administrative expenses (except management
fees that are considered as income to the operator), bunker costs and port
expenses:

Net freight earnings = Freight revenues - Vessel’s voyage and operating
expenses.

Then, on basis of the commercial databases we find the country of
registration of the legal owner (SPC/SPV) that receives the net freight earnings
from the commercial operator. Net freight earnings enter the Balance of
Payments as imports of sea transport services.

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