Operating Costs of Panamax and Post-panamax Containerships (in USD)

A standard Panamax containership has operational costs of about $9 millions per year. The most significant expenses are related to fuel (46%) and port charges (21%), which are variable costs. This is transcribed in annual operating costs of about $2,314 per TEU. Not shown here are the significant amortization costs related to the ship purchase (principal and interest). The incentive to use larger containerships is quite clear from the maritime shipper's perspective. A new generation of 10,000 TEU containerships are expected to be introduced by 2007-8. In this case, fuel and port charges will account respectively for 50% and 21% of their annual operating costs, while manning costs will remain constant. However, annual operating costs per TEU drop by more than one half to $1,449. The principle of economies of scale is thus a strong factor in containerized maritime shipping.