If you’re one of the people who want to have a more hands-on approach when it comes to international trade, then buying and maintaining a cargo ship might be a very rewarding experience, although its cost is something you really shouldn’t ignore.
Owning a cargo ship will be a cost-effective and reliable way of shipping and transporting of goods, regardless of whether you are a large company that is looking into diversifying its shipping options or just an entrepreneur considering breaking into the world of international commerce.
But before getting into such a big investment, it will be a great idea to understand exactly how much a cargo ship costs both in terms of buying and maintaining it. There are a lot of factors that come into play when budgeting for a cargo ship, including the purchase costs, crew salaries, and related ongoing maintenance.
This article should give you a good idea about the costs that are associated with owning and maintaining a cargo ship so that you are sure you make an informed decision when you choose to invest in one.
How Much Does A Cargo Ship Cost?
The initial purchase cost of a cargo ship is between $30 million for a smaller container ship and $500 million for a larger bulk carrier, although the exact price tag will depend on the type of ship and its size.
The cargo ship cost is also influenced by the quality and quantity of materials used to have it built. As larger vessels need more steel and other materials, along with more labor hours to be built, they will also cost more than smaller vessels. As for the type of cargo ship, it can also influence its cost quite a lot.
A bulk carrier, for example, will need specialized design features and equipment to carry bulk cargo like ore or grain, while a container ship will carry containers, needing different types of design features and equipment.
Full Expense Of Buying A Cargo Ship
- As said above, the initial purchase of the cargo ship will be quite high, between $30 million and $500 million, depending on the type and size of the ship, but this is just the first expense you should consider.
- There are also additional costs associated with operating and owning a cargo ship. Among the most important ones are insurance premiums, fuel costs, and crew salaries.
- There is also ongoing maintenance which you shouldn’t ignore, and it can get expensive quite fast, especially if you have a larger ship. One example is the regular engine repairs that can easily cost around $1 million each.
- There are also fees and taxes you will have to pay when owning a cargo ship, and they are also an expensive aspect.
- And of course, you can’t ignore the expenses you will face when running the cargo ship, like equipment purchases, replacements, and repairs.
What Are The Benefits Of Owning A Cargo Ship?
Owning a cargo ship comes with a lot of benefits. You can use a cargo ship for several different tasks, as it is a rather versatile type of boat.
When compared to other types of vessels, cargo ships are less expensive to operate, which is why this is one of the more affordable options if you’re not experienced in the shipping industry.
General cargo ships are also faster than most types of big vessels, which is why they are great for transporting all kinds of goods quickly and efficiently between ports.
Newer cargo ships are usually equipped with newer, state-of-the-art technology, which is why they can transport sensitive cargo across oceans easily.
How To Find The Right Container Ship For You?
When looking for a good cargo ship, there are some important things you should consider. Things like the shipping route, the most common port of destination, as well as the type of cargo you’re going to transport, are all things you should have clear in your head before making the acquisition.
When you know for sure what you need, instead of going to a cargo shipping company, it’s better to look for a broker, to make sure you get the best price and find a vessel to best suit your needs.
As buying a cargo ship isn’t cheap, make sure you’re ready for this financial investment and for the expenses to come once you have it.
Final Words on Freight Ships
Cargo ships are very versatile and can be used for multiple tasks, although most people use them to carry goods around. Most of them are priced between $30 million and $500 million, depending on their size, their type, and the materials used to make them.