Reducing the Life Cycle Costs of Seagoing Vessels

Put simply, the life-cycle cost is the expected net cost over the lifetime of the vessel. Initial cost and all subsequent expected costs of significance (such as inspection, repair, lay-up, conversion and modification), as well as disposal costs, are included in economic life cycle cost (LCC). Also included, though often more difficult to quantify, are failure costs. Should a component fail mid duty-cycle, and a replacement not be on-hand for immediate replacement, the opportunity cost for lost utility must be accounted for. Should a vessel be stuck in port due to an unexpected mechanical failure, not only should the potential fines for overstay be factored, but also the lost income from operation downtime.

According to joint research done by the Department for Transport, Traffic and Logistics, Faculty of Transport, and the University Politehnica of Bucharest, the average maintenance cost for seagoing vessels under 10 years old is 10% of the total operating expenses (OPEX). Once a vessel crosses this age threshold, it is estimated to increase up to between 20 and 30% of OPEX as systems become tired and require more complex and regular servicing. If we think of a Marine platform as a small independent business, its success depends on the application of a combination of good engineering practices and sound economic decisions. When equipment is in less-than-optimal condition, it has to work a lot harder to do its job and it doesn’t last as long. Therefore, proper maintenance is the key to endurance and cost efficiency.

Ship owners, fleet managers and crews should seek to implement maintenance procedures that exceed the basic requirements, rather than simply meeting them. Well-maintained vessels with operationally-aware crews have been proved to be much safer and more reliable vessels. However, effective maintenance requires foresight and planning: Regular inspections promote better readiness to respond to problems because there is a higher level of predictability, and the problems tend to happen in a more controlled manner. Better maintenance is much like an insurance against emergencies. Seeking to eliminate the number of cases of equipment failure, causing interruptions to operations, means taking action based upon condition analysis rather than simply focusing only on time-based monitoring. Running hours alone do not provide the best guidance for maintenance planning and resources.

Viewing maintenance as a form of insurance can in fact shift priorities in the right direction: It may seem counter-intuitive to exceed the minimum required maintenance in the short term, but when looking at the entire LCC, spending more on maintenance in the short term actually leads to a lower overall cost throughout the total lifecycle of a vessel. But how can maintenance crews make their budget stretch further? As aftermarket spares become almost indistinguishable from their genuine counterparts, the argument for replacement before failure is much easier to make. When an OEM-quality service kit can be sourced for a fifth of the price of the genuine parts, the decision to perform preventative maintenance rather than remedial work after the fact is a very simple on to make. Given that manufacturers warranties often expire within 5 years of purchase, removing the stipulation that genuine parts must be used in order to preserve the warranty, the argument for switching to aftermarket spares earlier in the lifecycle often sells itself.

To learn more about aftermarket compressor, pump and sewage system spares, contact us on sales@mpcc.co.uk