The Middle East shipping trade has once again come under heightened scrutiny due to the conflict in the Strait of Hormuz. Although this conflict has already led to higher shipping rates and war-risk insurance premiums, it could substantially impact ship operating costs as well in the long term.

In this context, Drewry has evaluated the potential implications for ship operating costs across key cost elements, each of which is influenced by distinct factors.

1. Lubricants

Various technical equipment used in ship operations depend heavily on oil-based products, particularly lubricants, which are produced and marketed by global oil majors such as Shell and BP. Therefore, a rise in oil prices could also increase the price of lubricants.

2. Stores

Technical stores such as chemicals, paints, cleaning products and other consumables often rely on petchem feedstock. With increasing oil prices, the production and transportation expenses for these resources are also likely to surge.

3. Spares

Components of marine machinery and engine parts are manufactured using energy-intensive processes including steel production and precision machining, and often transported over long distances.

As a result, rising oil prices can steadily drive-up the prices of spare parts.

However, when oil prices rise, the prices of opex components that depend on oil…