Cargo ships play a crucial role in maintaining the global trade system, enabling the transportation of goods across vast oceans. For businesses and investors looking to enter the shipping industry, understanding the cost of a cargo ship is vital. However, calculating the price of a cargo ship is no simple task. It involves considering various factors that influence both the initial investment and the ongoing expenses. From the size and type of vessel to the engine technology and maintenance costs, numerous elements must be taken into account. In this article, we will delve into the factors that determine the cost of a cargo ship, while also exploring the investment considerations that individuals and companies should carefully weigh before entering this complex and dynamic industry.
Types of cargo ships
A. Bulk carriers
Bulk carriers are specifically designed to transport bulk cargo such as coal, iron ore, and grains. They are characterized by their large size, open hatches, and large cargo holds. These ships are equipped with specialized loading and unloading equipment to efficiently handle loose materials.
B. Container ships
Container ships are the most common type of cargo ship and are designed to transport standard-sized shipping containers. They have a large number of stackable containers on their deck, which allows for easy loading and unloading at ports. Container ships are essential for global trade due to their ability to transport a large volume of cargo.
C. Tankers
Tankers are used to transport liquid cargo such as oil, chemicals, and liquefied natural gas (LNG). They have specially designed tanks to safely carry and transport these substances. Tankers come in different sizes and can be classified into different categories based on the type of cargo they carry.
D. Refrigerated cargo ships
Refrigerated cargo ships, also known as reefer ships, are designed to transport perishable goods that require temperature-controlled environments. These ships have refrigerated containers or compartments to maintain the freshness and quality of the cargo, including items such as fruits, vegetables, and pharmaceutical products.
The type of cargo ship required for a specific transport task depends on several factors, including the type of cargo, distance, and port infrastructure. Each type of cargo ship has its own unique design and features to cater to the specific needs of different industries. Understanding the different types of cargo ships is essential when considering the cost and investment considerations associated with each type.
Factors influencing the cost of cargo ships
A. Size and capacity
The size and capacity of a cargo ship are major factors that influence its cost. Larger ships with greater capacity generally have higher price tags. This is due to the higher costs associated with building and maintaining larger vessels. The size and capacity of a cargo ship also determine its operational efficiency and flexibility, which can impact its profitability. For example, a larger ship may be able to transport more cargo in a single trip, reducing the overall cost per unit of cargo.
B. Age and condition
The age and condition of a cargo ship also play a significant role in determining its cost. Newer ships tend to command higher prices due to their improved technology, fuel efficiency, and compliance with current regulations. Additionally, newer ships may have a longer economic life, providing a better return on investment over time. On the other hand, older ships may have a lower purchase price but may require more frequent maintenance and repairs, leading to higher operational costs.
C. Type of propulsion system
The type of propulsion system used in a cargo ship can affect its cost. Traditional propulsion systems such as diesel engines are typically less expensive initially but may have higher fuel consumption and maintenance requirements. Alternatively, more modern and efficient propulsion systems, such as LNG (liquefied natural gas) or hybrid systems, may have higher upfront costs but can offer long-term cost savings through lower fuel consumption and reduced environmental impact.
D. Technological features and innovations
The inclusion of advanced technological features and innovations in a cargo ship can increase its price. These features can enhance the ship’s efficiency, safety, and environmental performance. For example, the incorporation of automated systems, navigation aids, and advanced cargo handling equipment can streamline operations and reduce labor costs. However, the initial investment in these technologies may be higher, requiring careful consideration of the long-term benefits and return on investment.
E. Material composition
The material composition of a cargo ship can affect its cost. Ships constructed from high-quality materials, such as marine-grade steel, may have a higher initial price due to their durability and resistance to corrosion. On the other hand, ships made from alternative materials, such as aluminum or composite materials, may have lower initial costs but may require more frequent inspections and maintenance.
Overall, several factors influence the cost of cargo ships. Size and capacity, age and condition, propulsion system, technological features, and material composition all play a role in determining the price of a cargo ship. Understanding these factors is essential for prospective buyers to make informed decisions and balance cost considerations with investment goals and long-term profitability.
INew vs. used cargo ships
Advantages of buying a new cargo ship
When considering the purchase of a cargo ship, buyers have the option of buying a new vessel or opting for a used one. There are several advantages associated with buying a new cargo ship.
Firstly, one of the main advantages of purchasing a new cargo ship is the assurance of reliability. New ships are built to the latest industry standards and technological advancements, ensuring that they are equipped with the most efficient and advanced systems. This results in improved fuel efficiency, lower operating costs, and reduced maintenance requirements. Additionally, new ships often come with warranties from the shipyard, providing buyers with peace of mind.
Secondly, new cargo ships offer customization options. Buyers have the opportunity to work with ship designers and builders to incorporate specific features and designs that cater to their unique needs. This allows for greater efficiency in terms of cargo handling and transport, as well as the potential to maximize revenue generation.
Cost considerations for buying a used cargo ship
While buying a new cargo ship has its advantages, there are also cost considerations that make purchasing a used ship an attractive option for some buyers. Used ships are generally more affordable than new ones, making them a viable choice for buyers with budget limitations.
However, it is crucial to note that the initial purchase price is not the only cost consideration when buying a used cargo ship. Older ships often require more frequent maintenance and repairs, resulting in higher operating expenses. Additionally, the risk of unforeseen breakdowns and equipment failures is higher with used ships. Buyers must carefully assess the condition and age of the ship to estimate potential future maintenance costs accurately.
Balancing cost and quality
When choosing between a new or used cargo ship, buyers must strike a balance between cost and quality. It is essential to evaluate the specific needs and requirements of the cargo shipping operations and weigh them against the available budget. Conducting a comprehensive cost-benefit analysis that includes not only the purchase price but also the potential long-term expenses is crucial in making an informed decision.
Moreover, buyers should consult with maritime experts, engineers, and ship brokers who possess the knowledge and experience necessary to assess the quality and condition of used ships accurately. These professionals can provide insights into the lifespan of the vessel, potential maintenance costs, and the value it could still offer in the market.
In conclusion, buying a new cargo ship offers the advantages of reliability, the latest technology, and customization options. On the other hand, purchasing a used cargo ship can be a more cost-effective option, but buyers should carefully consider the potential higher operating expenses and maintenance costs associated with older vessels. Striking a balance between cost and quality is crucial, and consulting with experts in the maritime industry can provide valuable guidance in making an informed investment decision.
Pricing Ranges for Cargo Ships
A. Cost variation according to ship type
The cost of cargo ships can vary significantly depending on the type of ship. Bulk carriers, container ships, tankers, and refrigerated cargo ships all have different price ranges due to their unique characteristics and functionalities.
Bulk carriers, which are designed for transporting bulk cargo such as coal, ore, and grains, are typically the most affordable type of cargo ship. Their simpler design and lack of specialized systems contribute to their lower cost compared to other types of ships.
Container ships, on the other hand, are more complex and technologically advanced. They are specifically built to transport standardized containers efficiently and securely. Due to their high demand and the advanced equipment they require, container ships tend to have higher price tags compared to bulk carriers.
Tankers, designed to carry liquid cargo such as oil and petroleum products, are also among the more expensive cargo ships. The cost of tankers is influenced by the specialized systems needed to transport and store the liquid cargo safely.
Refrigerated cargo ships, also known as reefer ships, are designed to transport temperature-sensitive goods such as perishable food products. These ships require sophisticated refrigeration systems, which contribute to their higher cost compared to other types of cargo ships.
B. Price ranges based on ship size and capacity
The size and capacity of a cargo ship are significant factors that determine its price range. Generally, larger ships with greater capacity have higher price tags. This is due to the higher construction and material costs involved in building larger vessels.
For example, a small bulk carrier with a capacity of around 10,000 deadweight tons (DWT) can have a price range of $8 million to $25 million. On the other hand, a larger bulk carrier with a capacity of 200,000 DWT can range anywhere from $40 million to $60 million.
Similarly, the price range for container ships can vary based on their carrying capacity. A small container ship with a capacity of around 2,000 twenty-foot equivalent units (TEUs) may cost between $15 million to $25 million, while a large container ship with a capacity of 14,000 TEUs can have a price range of $100 million to $150 million.
It’s important to note that these price ranges are approximate and can vary depending on various factors such as market conditions, shipyard negotiations, and customization options.
C. Additional costs to consider (e.g., equipment, customization)
In addition to the base price of a cargo ship, there are several additional costs to consider. These costs can significantly impact the overall investment required for purchasing a cargo ship.
One of the significant additional costs is the equipment required for the ship’s operation. This includes navigation and communication systems, cargo handling equipment, cranes, and safety equipment. The cost of these essential components can vary depending on the ship’s type and size.
Customization is another factor that can contribute to the overall cost of a cargo ship. Buyers may choose to customize certain features or systems based on their specific needs and requirements. Customization options can range from interior layout modifications to installing specialized equipment.
Other additional costs to consider include the expenses associated with inspections, surveys, legal fees, registration fees, and taxes. These costs can vary depending on the country of purchase and the specific regulations involved.
When calculating the overall investment required for a cargo ship, it’s crucial to consider these additional costs to ensure an accurate assessment of the total price.
Investment considerations for buying a cargo ship
A. Costs beyond the initial purchase (e.g., maintenance, crew, fuel)
Investing in a cargo ship goes beyond the initial purchase price. There are several ongoing costs that need to be considered when buying a cargo ship. One of the major costs is maintenance. Regular maintenance is crucial to keep the ship in good condition and ensure its longevity. This includes dry-docking, repairing or replacing parts, and painting the hull.
Another significant cost is the crew. A cargo ship requires a skilled crew to operate it. The crew includes various positions such as captain, officers, engineers, and deckhands. The cost associated with the crew’s salaries, accommodations, meals, and training should be included in the investment considerations.
Fuel costs also need to be taken into account. Cargo ships typically run on heavy fuel oil, and the price of fuel can fluctuate significantly. It is important to assess the fuel consumption of the ship and estimate the ongoing fuel expenses based on current and projected fuel prices.
B. Market demand and vessel profitability
Before investing in a cargo ship, it is crucial to evaluate the market demand for the type of cargo the ship will transport. Certain cargo types may have higher demand in specific regions, while others may be more volatile. Understanding the market dynamics and demand forecast is essential to ensure the vessel’s profitability.
Factors such as the ship’s size, capacity, and technological features also play a role in determining its profitability. Ships with higher capacity and advanced features may attract more clients and command higher rates for transportation services. Assessing the potential profitability of the cargo ship is crucial to make an informed investment decision.
C. Financing options and availability of loans
The cost of purchasing a cargo ship can be substantial, and many investors may require financing to acquire a vessel. It is important to explore different financing options and evaluate the availability of loans. Banks and financial institutions specializing in maritime financing may offer loans specifically tailored for the purchase of cargo ships. Understanding the terms, interest rates, and repayment options of the loans is essential to determine the feasibility of financing the investment.
D. Insurance and risk management
Insuring a cargo ship is essential to protect the investment from potential risks and liabilities. Insurance coverage should include protection against accidents, damage to cargo, pollution incidents, and crew injuries. The cost of insurance premiums should be factored into the overall investment considerations. Additionally, assessing the risk management strategies and the safety record of the ship is crucial to minimize potential risks and liabilities.
Investing in a cargo ship can be a complex decision. Thoroughly assessing the costs beyond the initial purchase, evaluating market demand and profitability, exploring financing options, and considering insurance and risk management are imperative before making an investment decision. Conducting comprehensive research and consulting with maritime experts and brokers can provide valuable insights to ensure the selection of the right cargo ship for investment.
Secondary market for cargo ships
A. Sale and purchase of used cargo ships
The secondary market for cargo ships provides an alternative option for buyers who are looking to acquire a ship at a lower cost or specific specifications that may not be available in the new ship market. The sale and purchase of used cargo ships involve transactions between shipowners or shipping companies.
When buying a used cargo ship, it is essential to carefully examine its condition, maintenance history, and any necessary repairs. Buyers may choose to conduct surveys, inspections, and trials to ensure the vessel’s seaworthiness. Additionally, the purchase agreement should include clauses that address potential liabilities or warranties from the seller.
B. Factors affecting the resale value of a cargo ship
Several factors influence the resale value of a cargo ship in the secondary market. The age and condition of the vessel play a significant role, as well as the ship’s maintenance history. Ships that are well-maintained and have a clear maintenance record tend to have higher resale values.
Market demand for specific ship types also affects the resale value. If there is high demand for a particular type of cargo ship, its resale value is likely to be higher. On the other hand, oversupply of certain ship types may result in lower prices in the secondary market.
Additionally, technological advancements can impact the resale value of older ships. As new technologies emerge, older ships may become less competitive in terms of fuel efficiency, environmental compliance, or operational capabilities. Therefore, ships equipped with outdated technologies may have lower resale values.
C. Benefits and disadvantages of acquiring a secondhand ship
Acquiring a secondhand ship has both benefits and disadvantages. One of the significant advantages is the potential cost savings compared to buying a new ship. Used ships are generally available at lower prices, allowing buyers to allocate more funds to other areas of investment or operational expenses.
Secondhand ships may also have a proven track record, making it easier for buyers to assess their performance and profitability. Buyers can analyze historical data to evaluate the average fuel consumption, maintenance costs, and revenue generation of a specific vessel. This information can provide valuable insights for investment decisions.
However, there are also disadvantages to purchasing a secondhand ship. The older the ship, the higher the likelihood of encountering maintenance issues or the need for repairs and upgrades. These additional costs can offset the initial savings made when buying a used ship. Furthermore, older ships may not comply with the latest regulatory requirements, potentially resulting in additional expenses for retrofitting or modifications.
Choosing whether to acquire a new or used cargo ship ultimately depends on the buyer’s specific requirements, budget, and risk appetite. Conducting a thorough analysis of costs, resale value, and market demand is crucial to make an informed decision when entering the secondary market for cargo ships.
In the next section, we will explore the total owning and operating costs associated with owning a cargo ship, providing further insights into the financial considerations of this investment.
Total owning and operating costs
Factors contributing to the long-term costs of a cargo ship
Owning and operating a cargo ship involves various expenses beyond the initial purchase price. Several factors contribute to the long-term costs associated with cargo ships.
One significant factor is fuel expenses. The cost of fuel can significantly impact the operating costs of a cargo ship. As fuel prices fluctuate, shipowners must allocate a substantial portion of their budget towards fuel. Factors such as the ship’s size, propulsion system, and speed affect fuel consumption.
Maintenance costs are another essential consideration. Regular inspections and repairs are necessary to keep the ship in good working order. Maintenance costs include expenses for engine overhauls, hull cleaning, painting, and equipment replacements. The age and condition of the ship can impact the extent and frequency of maintenance required.
Crew costs are a significant ongoing expense. Salaries, benefits, and training for the crew members contribute to the overall operating costs. The number of crew members required depends on the size and complexity of the cargo ship.
Insurance is another expense that shipowners must account for. Cargo ships are exposed to various risks such as accidents, piracy, and natural disasters. Insurance premiums can vary based on factors such as the ship’s age, size, and type of cargo it carries. Risk management strategies should also be considered to mitigate potential losses.
Calculating the total owning and operating costs
To calculate the total owning and operating costs of a cargo ship, shipowners must consider all the aforementioned factors. It is essential to conduct a thorough analysis and estimate the potential expenses accurately.
Shipowners can start by estimating the annual fuel consumption based on the ship’s size and propulsion system. Then, they can multiply the estimated fuel consumption by the current fuel prices to determine the annual fuel costs.
Next, shipowners should assess the ship’s maintenance requirements based on its age and condition. They can consult with marine engineers and ship management companies to estimate the annual maintenance costs.
Crew costs can be determined by considering the number of crew members required and the average salary and benefits for each position. Consulting with maritime recruitment agencies can provide insights into industry standards.
Insurance costs can be obtained by requesting quotes from insurance providers. It is crucial to review the coverage options and consider the potential risks associated with the cargo ship’s operations.
By adding up the estimated fuel costs, maintenance costs, crew costs, and insurance premiums, shipowners can calculate the total owning and operating costs for their cargo ship. This comprehensive understanding of the long-term expenses enables them to make informed decisions about investment and budgeting.
In conclusion, owning and operating a cargo ship involves various costs that go beyond the initial purchase price. Fuel expenses, maintenance costs, crew costs, and insurance premiums contribute to the total owning and operating costs. By conducting a detailed analysis and accurately estimating these expenses, shipowners can make informed decisions and effectively manage their budget.
Factors affecting the depreciation of cargo ships
A. Economic conditions and market trends
The depreciation of cargo ships is influenced by various factors, including economic conditions and market trends. During periods of economic downturn, such as recessions or financial crises, the demand for shipping services may decrease, resulting in lower freight rates and reduced profits for shipowners. This can lead to a decrease in the market value of cargo ships.
Similarly, changes in market trends can impact the depreciation of cargo ships. For example, the increased emphasis on sustainability and environmental regulations may render older ships with outdated technology or inefficient fuel consumption less desirable. This can lead to a faster depreciation rate for these vessels compared to newer, more environmentally friendly ships.
B. Technological advancements and obsolescence
Technological advancements play a significant role in the depreciation of cargo ships. As new technologies and innovations emerge, older ships with outdated features or propulsion systems may become less competitive and face a decrease in value. Newer ships equipped with advanced technology, such as fuel-efficient engines or automation systems, may command higher prices in the market.
Obsolescence is another factor that affects ship depreciation. Given the rapid pace of technological advancements in the maritime industry, ships can quickly become outdated. As newer and more advanced ships enter the market, older vessels may become obsolete and lose value at a faster rate.
C. Regulatory changes and environmental considerations
Regulatory changes and environmental considerations also impact the depreciation of cargo ships. Shifts in international regulations, such as stricter emissions standards or ballast water management requirements, can significantly affect the value of ships that do not comply with these regulations.
Furthermore, environmental considerations have become increasingly important in the shipping industry. An older ship that lacks environmentally friendly features may be subject to additional costs, such as retrofitting to meet new environmental standards. This can significantly decrease the resale value of the vessel and accelerate its depreciation.
In conclusion, the depreciation of cargo ships is influenced by economic conditions, market trends, technological advancements, obsolescence, regulatory changes, and environmental considerations. Shipowners and investors must stay informed about these factors to make informed decisions regarding ship purchases and investments. By considering these factors, stakeholders can mitigate the risk of significant depreciation and maximize their return on investment.
Case studies: Examples of cargo ship costs
A. Recent examples of new cargo ship prices and specifications
In this section, we will examine recent examples of new cargo ship prices and specifications to provide a clearer understanding of the cost factors involved in purchasing a cargo ship.
One notable example is the MV Ever Govern, a new container ship delivered in 2020. The vessel has a capacity of 20,964 twenty-foot equivalent unit (TEUs) and was built by Hyundai Heavy Industries. The total cost for constructing the MV Ever Govern was approximately $150 million. This price includes the shipbuilding costs, equipment installation, and customization according to the buyer’s specifications. The high cost of this vessel can be attributed to its large capacity, advanced technological features, and high-quality construction materials.
Another example is the new bulk carrier, MV Industrial Courage, which was built by Yangzijiang Shipbuilding in 2018. This vessel has a deadweight tonnage (DWT) of 85,000 and a total cost of $38 million. The price of this bulk carrier is comparatively lower than that of a container ship because bulk carriers generally have simpler designs and lower technological requirements.
B. Case studies of used cargo ship purchases and corresponding costs
Now let’s turn our attention to case studies of used cargo ship purchases to understand the cost considerations for buying a pre-owned vessel.
One example is the sale of the MV Neptune, a secondhand tanker built in 2005. The vessel has a DWT of 40,000 and was sold for $10 million in 2021. The lower price of this used tanker reflects its older age and potential maintenance requirements. Buyers of used cargo ships must carefully assess the condition, maintenance history, and potential repair costs of the vessel before making a purchase.
In another case, a used refrigerated cargo ship, the MV Arctic Ice, was purchased in 2019 for $12 million. This vessel, built in 2012, has specialized refrigeration equipment and insulation to transport perishable goods. The price of this used refrigerated cargo ship is influenced by its relatively recent construction date and the demand for specialized vessels in the market.
Conclusion:
The case studies provided demonstrate the wide range of prices for both new and used cargo ships. Factors such as ship type, size, capacity, age, and the presence of specialized features significantly impact the cost of a cargo ship. Additionally, market demand and vessel profitability play a crucial role in determining the value of secondhand ships. It is essential for investors to carefully evaluate the specifications, condition, and potential return on investment before finalizing a purchase decision. Thorough research, consultation with maritime experts, and a comprehensive analysis of market trends are essential steps to guide investors in choosing the right cargo ship for their investment goals.
Choosing the right cargo ship for investment
A. Researching market trends and demands
Investing in a cargo ship requires a thorough understanding of the current market trends and demands. Researching the industry to identify the types of cargo ships that are in high demand can help investors make a more informed decision. For example, if there is a growing demand for container ships due to the increase in international trade, it might be wise to invest in this type of vessel.
Analysing market trends also involves identifying potential risks and challenges that could affect the profitability of the investment. For example, changes in trade policies or geopolitical tensions can impact the demand for cargo shipping services. Keeping track of these factors can help investors make strategic decisions and mitigate potential risks.
B. Consulting with maritime experts and brokers
Seeking advice from maritime experts and brokers can provide valuable insights into the cargo ship market. These professionals have in-depth knowledge of the industry and can offer guidance based on their experience and expertise. They can provide information on market trends, ship specifications, pricing, and other relevant factors that should be considered before making an investment.
Maritime experts and brokers can also assist in identifying reputable shipyards and sellers, negotiating prices, and ensuring that all legal and regulatory requirements are met. Their expertise can be particularly valuable for first-time investors who may not have prior experience in the maritime industry.
C. Evaluating the long-term viability of the investment
Investing in a cargo ship is a long-term commitment, and it is crucial to evaluate the viability of the investment over an extended period. This evaluation should consider factors such as the projected demand for the type of cargo ship being considered, the expected lifespan of the vessel, and potential resale value.
Additionally, the operating costs of the cargo ship must be taken into account. This includes expenses such as maintenance, crew salaries, fuel, insurance, and any regulatory compliance requirements. A detailed cost analysis can help determine the profitability and return on investment of owning and operating a cargo ship.
Ultimately, the viability of the investment will depend on a combination of factors, including market conditions, the specific needs of the shipping company or operator, and the investor’s financial goals and risk tolerance.
Conclusion
In conclusion, investing in a cargo ship requires careful consideration of various factors. Market trends, demands, and potential risks must be thoroughly researched. Consulting with experts and brokers in the industry can provide valuable insights and guidance. Evaluating the long-term viability of the investment, including operating costs and potential resale value, is crucial. Conducting a thorough analysis before investing in a cargo ship is vital to make an informed decision and maximize the chances of a successful investment.
Conclusion
Recap of Key Factors Influencing the Cost of Cargo Ships
In this article, we have explored the various factors that influence the cost of cargo ships. We have discussed the importance of considering factors such as size and capacity, age and condition, type of propulsion system, technological features and innovations, and material composition when determining the cost of a cargo ship. These factors play a crucial role in determining the initial purchase price as well as the long-term operating costs associated with owning a cargo ship.
Importance of Conducting Thorough Analysis before Investing in a Cargo Ship
Investing in a cargo ship is a significant decision that requires thorough analysis and consideration. It is imperative to evaluate the market demand and vessel profitability, as well as the availability of financing options and loans. Additionally, one must consider the costs beyond the initial purchase, such as maintenance, crew, and fuel. Insurance and risk management are also essential aspects to consider when investing in a cargo ship.
Consideration of Total Owning and Operating Costs
When considering the costs of owning and operating a cargo ship, it is crucial to take into account several factors contributing to the long-term expenses. These include maintenance and repair costs, crew expenses, fuel costs, and port fees. By calculating the total owning and operating costs, potential investors can gain a comprehensive understanding of the financial obligations associated with owning a cargo ship.
Factors Affecting the Depreciation of Cargo Ships
Multiple factors can influence the depreciation of cargo ships. Economic conditions and market trends can impact the value of a vessel, as can technological advancements and obsolescence. Regulatory changes and environmental considerations can also affect the depreciation of cargo ships. Being cognizant of these factors is crucial for investors who wish to understand the potential future value of their investment.
Importance of Thorough Research and Evaluation
Choosing the right cargo ship for investment requires diligent research and evaluation. It is essential to stay updated on market trends and demands, consult with maritime experts and brokers, and assess the long-term viability of the investment. By conducting thorough analysis and seeking expert advice, investors can make informed decisions that align with their financial goals and objectives.
In conclusion, the cost of a cargo ship is influenced by various factors such as size, condition, propulsion system, technological features, and material composition. It is essential to weigh the advantages of buying a new cargo ship against the cost considerations of purchasing a used one. Furthermore, considering the total owning and operating costs, factors affecting depreciation, and market demand are crucial for making a sound investment decision. Thorough research and evaluation are key to unlocking the potential of investing in a cargo ship.