EFFECTIVE SHIP MANAGEMENT
Discuss how ship management could be more effective from technical,
commercial, and crew management perspectives. Support your answer with
the effects of different stakeholders of shipping, such as classification society,
flag state, insurance company, charterer, etc... Feel free to use graphs, tables,
diagrams and examples.
AHMET TEMEL
2019423048
Total words: 2199
In this essay, we will examine what ship management is, the types of ship
management, the actors in shipping, and what the shipping market entails. We will
discuss how ship management can be made more effective from technical,
commercial, and crew management perspectives. We will also investigate how
classification societies, flag states, maritime stakeholders, insurance companies, and
charterers influence ship management.
Firstly, ship management stands as a vital component in the global shipping
industry, encompassing the administration of fleets, whether extensive or singular
vessels. This responsibility is undertaken by companies that operate vessels owned
by either third-party entities or independent owners. Objective of the ship
management is to run ships safely, securily, environmentally friendly and profitably. If
you give up one of them, there is no proper ship management. There are three types
of ship management. These are: In house Ship Management, Hybrid, Third Ship
Management.
In house ship management’s functions are carried out by seperate. Functions
are performed under the auspices of the owning company. This type of organizations
does not manage 3rd party vessels. Operation, chartering, crewing department is run
from one place. Other strong benefit is they can organize quickly. Arkas can be an
example of in house ship management.
In Hybrid Management, some duties are runned by the management and
other are runned by the owner. This is latest development type of management. If
they can work hard and got money to own a vessel than they buy a vessel and keep
continue to tun others vessel. Cheemleet can be an example for hybrid management.
In Third Party Ship management, they do not own a vessel or having an
equity in the vessels. Their functions is to offer the ship management service to their
clients.Thet are professional companşes whjo guides vessel to others. Other means
they have no clue about shipping and they do not know how to run a vessel. Lucent ,
Omikron can be an examle of third part ship management.
Secondly, the shipping industry involves a wide range of actors, each playing a
crucial role in the transportation of goods by sea. Here are some of the key actors in
the shipping industry:
Ship Owners and Operators: These are companies or individuals who own
and/or operate ships. They are responsible for the maintenance, crewing, and
operation of vessels.
Ship Charterers: They are individuals or companies that hire a ship (or part of
it) for a specific voyage or a set period. There are two main types of charters: time
charters (where the charterer hires the vessel for a specific period) and voyage
charters (where the charterer hires the vessel for a specific voyage).
Maritime Insurance Companies: They provide insurance coverage for ships,
cargo, and liabilities associated with maritime activities.
Classification Societies: These organizations set and maintain technical
standards for the construction and maintenance of ships. They ensure that vessels
are safe and seaworthy.
Flag States: The flag state, chosen by commercial ships for registration,
dictates that the vessel must display the flag of that state and adhere to its
regulations. This state is accountable for enforcing international maritime rules and
standards on these vessels.
Maritime Agencies and Brokers: They provide various services to ships and
their owners, including crewing, technical management, and commercial operations.
Brokers facilitate the sale and purchase of ships.
Regulatory Authorities: These are governmental or international bodies that
set and enforce regulations governing the shipping industry. Examples include the
International Maritime Organization (IMO) and various national maritime authorities
So, how the ship management company developed and include what
departments? Firstly, some people, who have money and intend to invest their
money to shipping industry, but they do not know how to run their vessel, so they eed
an organizations to be guided. Ship managements company are built for them.
A ship management company diveded into many departments: technical
management, crew management, commercial management, financial management,
operations management.
Managing Director
DPA
Management
review team
Emergency Crewing Purchase Technical Operation
Response Team Manager Manager Management Manager
Internal Audit
Ship Masters Technical Marine
Team
superint. superint.
How can ship management be improved in terms of technical operations?
A ship management company takes on the responsibility of overseeing the
maintenance of a ship's machinery, aiming for a balance between safety,
environmental considerations, and cost-effectiveness. The technical department,
which handles tasks like drydocking, the acquisition or sale of new vessels,
inspections, and maintenance, plays a pivotal role in achieving these goals.
In today's scenario, accidents are frequently attributed to technical or human errors.
To mitigate these risks, it is crucial to employ top-notch equipment and uphold
meticulous maintenance practices. Maintaining the ship in impeccable condition is
key to ensuring its long-term and secure operations. However, larger companies
overseeing multiple vessels globally encounter challenges in closely monitoring each
vessel. This is where Classification Societies step in.
Classification Societies are entities tasked with establishing and enforcing technical
standards for ship design, construction, and surveys. Their primary objective is to
provide classification and statutory services to the maritime industry, emphasizing
safety and pollution prevention through the application of accumulated maritime
knowledge and technology. Upholding a reputable class involves adhering to high
technical standards and staying abreast of industry trends. A vigilant director with a
focus on safety is more likely to navigate successfully through inspections and
flag/port state controls. The flag state assumes a crucial role in this context.
The flag state bears the responsibility of inspecting and controlling vessels,
supporting shipping quality objectives, ensuring compliance with international and
national rules and standards for registered ships, and verifying the current condition
of hulls, equipment, manning, security systems, safety management, and crew
knowledge. Additionally, various surveys, such as bottom/docking surveys,
intermediate surveys, class renewal surveys, annual surveys, tallshaft surveys, boiler
surveys, non-periodical surveys, and ISM surveys, are conducted to
comprehensively control and inspect vessels.
How can ship management be improved in terms of crewing?
Crewing emerges as the pivotal facet within ship management, constituting a
fundamental service and competency for ship managers on a global scale. Especially
notable are third-party ship managers, as they extensively provide crewing services
to a multitude of shipping companies and internal ship management entities. The
primary objective of crew management is to provide well-trained and experienced
crew members, adhering to the shipowner's nationality requirements, ensuring the
vessel's safe and efficient operation in accordance with international regulations. An
experienced, content, well-informed, and well-trained crew that is hardworking,
energetic, dynamic, team-oriented, and respectful contributes significantly to safety,
environmental protection, and the successful execution of tasks.
Several factors impact the crewing process, including safety considerations and flag
registration. Flag registration holds particular importance concerning crewing, as the
legal regulations of the registering country usually establish the minimum safe
manning levels. Cost considerations may lead some shipowners to favor crews from
specific countries, even if there are potential variations in educational levels. From
my perspective, a ship manager should verify that crew members under their
supervision adhere to the Standards of Training and Certification of Watchkeepers
Convention (STCW). Alternatively, they may contemplate outsourcing crew
management to a third-party company.
The crew management company is the company which responsible for the manning
of vessels under a crew management contract. This contract includes the sourcing,
recruitment, selection, deployment, scheduling, training/upgrading programs, paying
salaries, travel of crew to vessels, drugs and alcohol policy, welfare, manning levels,
certification control, performance appraisal, insurance of crew and reporting.
In my perspective, achieving effectiveness in training and crewing involves strategic
investments across various key areas. Firstly, fostering a positive culture and
promoting teamwork is essential. This entails creating an environment where crew
members feel valued, motivated, and work cohesively towards common goals.
Positive morale and collaboration contribute significantly to the overall effectiveness
of the crew. Investing in crew welfare packages is equally crucial. Providing adequate
facilities, recreational opportunities, and addressing the well-being of crew members
not only enhances job satisfaction but also plays a role in attracting and retaining
skilled professionals. Integrated training and appraisal systems are pivotal in
ensuring that crew members receive continuous development and feedback. These
systems should encompass regular training programs to keep the crew updated on
industry standards, safety protocols, and technological advancements.
A combination of personal and computer-based training is an effective strategy.
While hands-on, practical training remains indispensable, incorporating computer-
based training modules can provide flexibility and accessibility for continuous
learning. This hybrid approach ensures that crew members have access to diverse
learning resources, enhancing their skills and knowledge base. Compliance with the
Maritime Labour Convention (MLC) 2006 and Safety of Life at Sea (SOLAS)
standards is non-negotiable. Adhering to these international regulations ensures that
crew members are afforded decent working conditions, fair treatment, and their rights
are protected. It also reflects positively on the ship management's commitment to
global maritime standards, fostering trust and credibility.
How can ship management be improved in terms of commercial side?
Ship management encompasses various facets, with the commercial side being a
critical component for success in the maritime industry. To improve ship management
from a commercial standpoint, several key strategies can be implemented.
Firstly, a keen understanding of market dynamics is paramount. Conducting
thorough market analyses allows ship managers to identify trends, assess demand,
and understand competition. Armed with this knowledge, they can develop strategic
business plans that align with market needs and maximize commercial opportunities.
Efficient chartering and voyage optimization contribute significantly to commercial
success. Advanced tools for route planning and fuel consumption reduction enhance
operational efficiency. Negotiating favorable chartering terms and building lasting
relationships with charterers are crucial elements of a successful commercial
strategy. Effective risk management is also vital. Identifying and mitigating risks
associated with market fluctuations and operational challenges ensures resilience.
Regular monitoring and assessment of financial and operational risks enable ship
managers to adapt their commercial strategies proactively. Financial management
practices play a central role in commercial success. Implementing efficient financial
strategies, controlling costs, and optimizing revenue contribute to overall financial
health. Regular reviews and adjustments to financial strategies in response to market
changes are crucial for sustained profitability.
In conclusion, improving ship management from a commercial perspective involves
a strategic approach encompassing market intelligence, customer relationship
management, efficient financial practices, and technology integration. By embracing
these strategies, ship managers can navigate the complexities of the maritime
industry successfully, positioning their operations for sustained growth and
profitability.
From class perspective: Class organizations play a vital role in establishing and
enforcing technical standards, ensuring ships adhere to these standards.
Collaborating effectively with classification societies is essential for ship managers to
uphold the seaworthiness of their vessels. The routine inspections, assessments, and
certifications conducted by these organizations verify that ships are operationally
sound, thereby minimizing risks associated with technical failures or accidents.
Moreover, staying informed about the latest technological advancements
recommended by classification societies not only enhances a ship's efficiency but
also contributes to its overall safety.
From charterer perspective: A charterer is an individual or entity that rents a ship to
transport goods or passengers by sea. The process of renting a ship for cargo
transportation at sea is known as chartering, and the agreement governing this
arrangement is called a charter. The detailed terms of the charter contract are
typically outlined in a document known as a charter party. There are three main types
of charterers: Time Charterers, Voyage Charterers, and Bareboat Charterers. Time
Charterers rent a ship for a specific period, Voyage Charterers for a single journey,
and Bareboat Charterers lease the vessel without crew or provisions. When
collaborating with reputable charterers such as BP, Shell, Exxon, MSC, and others,
stringent controls and inspections are often imposed. This necessitates a heightened
focus on safety and security measures. Successfully adhering to these standards not
only ensures operational excellence but also contributes to building a positive
reputation in the industry.
In conclusion, the effectiveness of ship management lies in a comprehensive and
strategic approach. Being affiliated with a reputable classification society and
registering under a respected flag sets the foundation for technical integrity and
regulatory compliance. Diligent attention to ship maintenance, coupled with prudent
decisions regarding ship acquisition and repairs in reputable dry docks, ensures the
vessel's longevity and reliability.
The human element is equally crucial, emphasizing the importance of a well-trained
crew and fostering a positive work culture devoid of blame. Prioritizing safety and
environmental protection, coupled with unwavering compliance with SOLAS,
MARPOL, and MLC rules and standards, underscores a commitment to global
maritime standards. Operational efficiency extends to well-planned ship and port
facility operations, requiring meticulous coordination and strategic foresight.
Collaboration with experienced professionals, including shipbrokers, agencies, and
charterers, adds a layer of expertise that enhances overall management strategies.
In essence, a holistic and conscientious approach to ship management,
encompassing technical excellence, regulatory adherence, meticulous maintenance,
human resource considerations, safety protocols, and strategic collaborations, is key
to navigating the complexities of the maritime industry successfully.
References:
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%20by%20merchant,international%20maritime%20rules%20and%20stipulations.
2) https://marlow-navigation.com/en/what-is-crew-management-services.asp
3) https://www.marineinsight.com/maritime-law/what-is-ship-management/
4) https://www.mitags.org/flag-vs-port-state/
5) https://www.clearwatergroup.nl/technical-ship-management/
6)https://www.maritimeinfo.org/en/Maritime-Directory/ship-management
7)http://
219992f81de85fc7c41d721b2b69168af693ae0d4d9bceaab64b.r19.cf1.rackcdn.com/
Ioannis%20makris.pdf
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