Sometimes known as shipping logistics, shipping management refers to the activity of supervising the flow of your items through a supply chain. Its ultimate goal is to guarantee that both inbound and outbound shipments function smoothly. It is a shipping optimization strategy used by all major corporations.
How do ship management companies work?
Ship management companies can be found throughout the world's nautical centres. Many organizations manage big fleets for a large number of ship owners. Several bigger shipping management businesses have their own vessels too. Most ship owners choose to outsource their ship management operations to control the cost.
In most scenarios, outsourcing ship management services implies that the shipowner may do business at a lower cost, owing to fewer in-house employees and resources. Another benefit of outsourcing management to a third-party ship manager is that the manager will be able to bring all fleets under its control to the table to negotiate contracts for maintenance and repair stores, marine insurance, and other services.
Shipping Management Services
The popular ship management services include:
Crew Management
Operational and Technical Management
Insurance
Procurement
Contract Management
Crew Management
Crew management services include the sourcing, recruiting, selection, deployment, scheduling, training/upgrading programmes, and ongoing management of seafarers aboard boats with crew management contracts.
Payroll services, travel arrangements, insurance, aid with health, banking & financial services, career counselling, communication roles, team-building, and family/social programmes are all included.
Operational and Technical Management of Vessels
Technical management, often known as comprehensive ship management, refers to the nautical service of maintaining and operating vessels on behalf of a ship owner. These accountabilities are mostly managed by a third-party ship management company rather than the ship's owner.
Technical ship management includes vessel registration, technical support, day-to-day operations, maintenance, and crew management. It may also encompass a vessel's business and commercial administration, such as chartering and financial supervision.
These management services are provided by a specialised technical department comprised of an expert team of maritime engineers, buying, information technology, safety, quality, environmental protection, insurance, and financial and administrative staff.
Insurance
Shipping insurance or marine insurance services are highly customized offerings by shipping management companies. They intend to meet ship owners’ insurance-related needs and protect their best interests at all times.
Most ship management businesses have strong, long-term links with protection and indemnity clubs, underwriters, and brokers, as well as a tight partnership with top-rated insurers, a trusted reputation, and vast knowledge in the insurance industry. This enables them to provide consumers with the finest solution and competitive terms in all elements of marine insurance.
Procurement
Procurement is an essential component of shipping management that attempts to:
• keep the vessels operational;
• minimise the cost of ownership and management;
• maintain quality; and
• comply with industry, safety, and environmental necessities.
Ship management businesses guarantee that the ship owner's fleet receives spare parts, consumables, supplies, maintenance, and services consistently and clearly at the best possible speed and cost.
Contract Management
Contract management comes under the purview of commercial management services. Shipping companies provide commercial management of the vessels on behalf of ship owners. This includes:
Chartering and regular operation of the vessel, including tender bids and long/medium term contracts, as well as vessel repair on behalf of the owners;
Interactions with ship agents, stevedoring firms, shipchandlers, port authorities, freight brokers, and charterers
The selection of ship agents, shipchandlers, and other partners, as well as the arrangement of port ship services
The Conclusion
Since the shipping industry looks after the heavy cargo movement of the world by transporting consignments across countries, the role of ship management services is paramount in keeping it functional and effective.
To know more about shipping management and the services included in shipping management and ship maintenance, look no further than PT USDA Seroja Jaya.