Answer
The correct commercial and maritime term is Standing Charges (also widely categorized as Fixed Operating Costs or OPEX).
1. What are Standing Charges?
Standing Charges are the fixed, baseline expenses required to maintain a vessel in an operational state. These charges accumulate on a daily basis (24/7/365), completely independent of whether the ship is actively sailing across the ocean, sitting idle at an anchorage, or undergoing repairs in a dry dock.
What is Included in Standing Charges?
Crew Costs: Basic wages, allowances, victualling (provisions), crew travel/repatriation, and P&I crew insurance.
Insurance Premium: Hull and Machinery (H&M) insurance, Protection and Indemnity (P&I) club dues, war risk insurance, and freight, demurrage, and defense (FD&D) insurance.
Stores & Spares: Baseline lube oils, deck/engine stores, tools, and routine consumables required to keep the machinery spaces functioning.
Routine Maintenance & Dry Dock Amortization: Regular running repairs, statutory surveys, and the amortized budget set aside for scheduled dry-docking intervals.
Management Fees: Administrative costs, superintendent shore-support, and vessel registration/flag state fees.
2. Standing Charges vs. Running/Voyage Costs
To give a comprehensive Class 1 answer, immediately contrast Standing Charges with Running Costs (or Voyage Costs), which are highly variable.
| Expense Category | Standing Charges (OPEX) | Running / Voyage Costs (Variable) |
|---|---|---|
| Nature | Fixed, time-dependent (Per Day) | Variable, activity-dependent (Per Voyage) |
| Paid By | Shipowner / Ship Manager | Charterer (in Time Charter) or Shipowner (in Voyage Charter) |
| Primary Examples | Crew wages, P&I insurance, management fees, routine drydock budget. | Bunkers (VLSFO/MGO), port dues, canal transits (Suez/Panama), pilotage, tug hire. |
| Vessel Idle State | Continues fully even if the vessel is waiting for cargo or laid up. | Drops to near zero (except for minimal port dues or auxiliary fuel). |