A Simple Model for Estimating Newbuilding Costs

The models presented here capture the most modern design and construction techniques, and most up-to-date cost information, compared to those previously described in the literature.

Abstract

This paper presents a simple model for estimating newbuilding costs. Regression equations are estimated on a large data set of recent 2003–2007 shipyard deliveries reported in Lloyd's Shipping Economist. The equations developed in this paper can be used in a wide variety of economic analyses involving new ship construction and operating costs. The models presented here capture the most modern design and construction techniques, and most up-to-date cost information, compared to those previously described in the literature.