deck_16993704 Flashcards
What is Ship Management
REV
- functions of taking care of a ship on behalf of
the ship owner - Responsible for manning, maintaining, supplying
and insuring the ship - Ensuring that the ship is seaworthy
- Vessel available to the operators for the
maximum amount of time possible.
Ship management service provided by
i. A dept within a shipping company, eg. NOL
ii. Its subsidiary eg. NSSPL
iii. From a ship management company employed by the ship owner (independent ship managers)
Departments within a
Ship Management Company
ATOMS
Admin., Finance and Human Resource Department
Technical Department
Operation Department
Marine Personnel Department
Safety and Quality Department
Ways to arrange crew for ships
Direct employment of crew by the shipmanagement company.
Employment of crew through a national
organisation.
Employment of crew through a union.
Employment of crew through an agency.
A combination of any of the above.
Direct employment
company employs the sea staff directly
Advantages:
Total loyalty to the company.
Easier to maintain the standard of the sea staff
and they know the company culture better.
Disadvantage:
Extra cost to maintain the crew department
Employment of personnel through a national organization
All tasks formerly performed by the crew dept are done by the
organization.
Ship manager’s task to decide how he wants the ship to be manned and when he wants the crew to be changed.
Ship manager will have to pay for the services rendered
Advantages:
Save expenses on the crew dept.
More efficient manpower planning and distribution
Disadvantage:
Lack of loyalty or interest on the company’s
performance
Employment of personnel
through a Union
The union supplies the whole crew.
The ship manager or owner has little control
over who sails in his ships.
Employment of crew through
an agency
Agencies are usually used by ship
managers to provide crew from countries
other than the country of management or
registration of the ship.
Responsibilities of a crew department
MERAW
The manning onboard a ship
The establishment of the crew in the company
Recruitment
Arrange joining and signing of crew onboard ships
Welfare of the crew
Manning On Board Ships
number, categories and qualifications of crew required to sail depending on country of registry, unions, or additional operational requirement of the ship.
Establishment
total number of sea staff required to crew
all the ships in the company’s fleet and will include crew at sea and ashore.
may be based on 100% on the manning scales of all the ships plus allowance for leave, sickness, study leave, training and overlap when changing crew
Recruitment
incomplete or incompetent crew is unsafe and in the eyes of the law, unseaworthy
Due to intense competition, shipping lines have to operate with the least cost to have the comparative advantage.
Crew cost and flagging out are some of the areas being used by ship managers to maintain their competitiveness.
Choice of Crew
Usually as per the registry of the ship.
To bring down the operating cost, many owners
have opted for open registries which allow foreign
crew.
Foreign crew has its own problems namely:
Communication problem.
Religions and custom may vary widely.
Antipathy between certain races.
Different food, culture
Different quality and standard
Safety maybe compromised if not careful.
Arrange joining and signing of crew on board ships
Must be economical and practical.
Max no. of crew at the same time to enjoy larger
discount and repetition of similar effort.
Done close to where crew are engaged to
minimise cost.
Sufficient experienced staff remaining to guide the
new staff.
Avoid Arriving too early.
Avoid Arriving too late .
Get best deal from airline.
Crew’s Welfare
Crew approach the crew dept for assistance when
they need help.
The spouses/next of kin also approach the crew
dept for assistance when they need to contact the
crew.
Send magazine, newspaper
Send letters on a regular basis
Bank in money on time
Make them feel important
Whitelist
Flag State Party elect not to accept seafarers with certificates issued by non White List countries for service on its ships
If it does accept such seafarers, they will be required by 1 February 2002 also to have an endorsement, issued by the flag State, to show that their certificate is recognized by the flag State.
ships flying flags of countries that are not on the White List will be increasingly targeted by Port State Control inspectors
Functions of a
Technical Department
cberrmms
Co-ordinate with other depts to ensure that the ship is run safely, efficiently and cost effectively with minimum down time
budgets and work plans..
Ensure all ships have appropriate certificates, plans, diagrams and documents
regular inspections to monitor vessel performance
repair, maintenance and supply budegtary control
Maintenance of records for analytical and legal purposes
maintenance and operation of ships and equipment as per government and classification society standard.
adequate spare parts,equipment and services
Four Types of Ship Registries
The traditional or “ closed” registries
The “open” registries.
The “off-shore” or “international” registries (second
registers).
The “dual” or “bareboat” registries
Traditional Registries
Apply to strict maritime countries
Very protective of their vessels being controlled by
state residents and local crew
Only these vessels are allowed to carry cargo
within the country.
Operating cost is high
Receive subsidies from state government
Example: USA, UK, Japan, Europeans countries.
Open Registries
Fastest growing registries
Provide flexibility in legislation,
Flexible financing structure,
Flexible with crew nationality and qualifications,
manning requirements,
Low/no tax on profit
Examples: Cyprus, Honduras, Liberia, Malta,
Panama, St. Vincent and Grenadines and Vanuatu.
Off-Shore or International Registries
(Second Registers)
Set-up by traditional registries
To stem the exodus of ships
Lower operating costs of owners including
employment of foreign seafarers
Examples: Norwegians, Danish and German
International registries
Norwegian International Ship Register
open to foreign shipping companies
Ships registered by Non-Norwegian owner shall be operated by a Norwegian shipping company with its head office in Norway.
Ships are not permitted to carry cargo or passengers between Norwegian ports or to engage in regular scheduled passenger transport between Norwegian and foreign ports.
Dual or Bareboat Registries
Allow vessels which are registered in one state in the name of the owner, to have temporarily the right to fly the flag of a second state.
Flag determines the crew nationality, applicable law
and state responsibility.
Examples : Germany, Australia, Liberia and
Philippines.
What are FOCs?
A flag of convenience ship is one that flies the flag of a country other than the country of ownership AND these flag states do not meet the additional criteria.
Additional criteria:
Ability and willingness of the flag state to enforce
international minimum social standards (mss) on its
vessels on:
Basic human rights
Trade union rights
Freedom of association
Right to collective bargaining
Social record determined by the degree of ratification and enforcement of ILO Conventions and Recommendations.
Safety and environmental record through Port State Control (PSC) inspections
ITF believes there should be a “genuine link” between the real owner of a vessel and the flag the vessel flies.
