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The dry-dockings Seaspan completed during the year ended December 31, 2012 involved the following vessels:
Vessel Completed ---------------------------------------- Rio de Janeiro Express Q1 CSCL Zeebrugge Q1 COSCO Fuzhou Q1 COSCO Yingkou Q1 CSCL Long Beach Q2 Seaspan Ningbo Q3 Seaspan Dalian (1) Q3 Seaspan Felixstowe (1) Q3------------(1) Dry-dockings for these vessels were completed while these vessels were off-charter, as described above.
Seaspan's cumulative vessel utilization since its initial public offering in August 2005 through December 31, 2012 was 99.1%.
Ship Operating Expense
Prior to Seaspan's acquisition of Seaspan Management Services Limited (the "Manager"), ship operating expense was comprised of fixed, daily, per vessel fees paid to the Manager for technical services. The amount of this technical services fee was established every three years. As a result of the acquisition, Seaspan's consolidated ship operating expense now represents the direct operating costs of the vessels.
Seaspan's ship operating expenses, presented on a basis comparable to 2011, are as follows:
($ impact in millions of USD, except per Quarter Ended Year Ended day amounts) December 31, Change December 31, Change ------------------ -------- -------------------- --------- 2012 2011 % 2012 2011 % -------- -------- -------- --------- --------- ---------Ship operating expense, as reported $ 36.9 $ 35.9 2.9% $ 138.7 $ 135.7 2.2%Add: General and administrative component of technical services fee(1) 2.8 - 100.0% 10.7 - 100.0% ------------------ --------------------Adjusted ship operating expense $ 39.7 $ 35.9 10.8% $ 149.4 $ 135.7 10.1%Ownership days 5,981 5,741 4.2% 23,399 22,106 5.8%Adjusted ship operating expense per day $ 6,651 $ 6,252 6.4% $ 6,386 $ 6,138 4.0%----------------(1) Prior to the acquisition of the Manager, the entire technical services fee was classified as ship operating expense. After the acquisition of the Manager, the Manager's general and administrative expenses that previously would have been included in the technical services fee and reported as ship operating expense are now presented as general and administrative expenses.
Total ship operating expense, as reported, for the year ended December 31, 2012 of $138.7 million consists of $9.3 million of technical services fees paid to the Manager during the pre-acquisition period from January 1 to January 26, 2012, and $129.4 million of direct costs incurred during the post-acquisition period from January 27 to December 31, 2012.
Adjusted ship operating expense for the quarter and year ended December 31, 2012 increased by 10.8% and 10.1% compared to the corresponding periods in the prior year. Of the 10.8% and 10.1% increase, 4.2% and 5.8% was due to an increase in ownership days for the corresponding periods. The remaining increase was due primarily to an increase in ship operating expenses related to the addition of four 13100 TEU vessels during 2012. Larger TEU vessels are more expensive to operate therefore the increased cost of lubes, insurance and other operating costs associated with these vessels contributed to a higher ship operating expense per day.
