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Ship Operations and Management

The thousands of ships, vessels and craft that are trading in the world today all have to be operated and managed. For some maritime operations, the task is a straightforward one, but it becomes more challenging as the venture increases in size and complexity. Ship management and the operation of ships is a crucial branch of shipbroking.

Anyone planning to study this complex subject with a view to employment with a ship operator or a ship manager should read this book as it covers all areas that are necessary for ship operations. These will include the ship, its registration and classification, insurance, crews and bunkers. The structure of shipowning and management organisations is detailed in the book as well as the ship manager's legal relationship with others. Voyage estimating and accounting are also discussed.

Ship Operations and Management

Key functions in ship management: commercial, operational, technical, crewing, bunkers, finance & administration.
Type of organisational structure: in-house, all or part contracted out.
Shipmanagement contracts (BIMCO Shipman)

Design and construction with particular reference to suitability for cargoes and trades
Dry Trades: Liner Trades – conventional tween decker, multi-purpose vessel, containership, Ro/Ro cargo, barge carriers
Tramp Trades – conventional bulk vessel (handy size, panamax, capesize)
ore carriers; combination carriers (ore/oil, ore/bulk/oil), refrigerated ships.
Wet Trades: Crude (ULCC, VLCC, Suezmax, Aframax) Product
Carrier; chemical carrier; gas carriers; specialist vessels
Ship-borne cargo handling gear including heavy lift and self unloaders
Terminology of measurements including dimensions, tonnages, cubic capacities, TEUs. Content and information available from capacity, general arrangement and stowage plans.

Choice of flag, flag states, offshore registries and flags of convenience.
The role and function of classification societies. Classification societies registers.
Class maintenance programmes and class surveys.
Safety certification. Port State Control.
Other surveys including on/off hire, pre-loading and bunkers
ISM Code – origin, application and audits.
Environmental protection; pollution liability.

Fixed costs – return on capital, amortisation, debt servicing.
Daily operating costs – crew expenses, victualling, stores, lubricants, insurance, P & I calls (including reserve for deductible), repair/ maintenance, dry docking, communication.
Voyage related costs – bunkers, port costs (including tugs, pilots, agency fees), canal dues, loading/discharging costs.
Budgeting and financial results.

Manning levels, recruiting officers and ratings. The Master and his authority. Using crewing agencies.
International regulations: Standards of Training, Certification & Watchkeeping (STCW),
International Labour Organisation (ILO), International Transport Workers Federation (ITF). National trade unions.
Essential elements of crew costs; basic wages, overtime, allowances, leave, social costs. Crew nationalities, mixed crews.

Hull and Machinery. Markets and placements. Institute warranties. Institute Time Clauses.
Additional cover (war risk, ice etc.), Total Loss, Constructive Total Loss (CTL).
P & I – The constitution and cover provided by mutual associations. Strike insurance, pollution insurance.
General Average when and why to declare it. The role and function of average adjusters.
Coping with casualties. Limitations of liability, salvage claims. Lloyds Open Form and salvage arbitrations.
Cargo claims.

Commercial Operations: voyage instructions, loading and discharging, compliance with contract including speed and performance issues. Other post fixture matters.
Technical Operations: Repair & maintenance, stores, dry docking.
Vessel routing: geographical and meteorological considerations, load line zones, canals and waterways.

Stowage factors; Characteristics; Stow plans & stability; compatibility, cleanliness, segregation etc.; IMDG Code, Outturn reports, tallying, sampling & disputes; Cargo damage, survey & reports.

Bunkers: Types of fuel supplied and their characteristics; Main bunker ports. Key players in the bunker market, contracts (use of FuelCon), quantity and quality measurement, sampling and testing.

Freight/hire collection, port disbursements, dealing with port agents.
Demurrage/despatch claims. Dealing with contractors and sub-contractors including Tugs, Pilots, Stevedores, Terminal operators, Riggers, Hold/Tank cleaners, slop disposal services, dry docks, engine builders, lubricant and bunker supplies, repairers, ship chandlers etc.

Route calculations. Maximising cargo lift – load line zones and stability issues.
Bunker planning – choice of bunker ports.
Comparing different employment offers and alternative routes.

The legal position of the ship managers in relation to; cargo claims; arrest in rem; freezing orders and late hire payment.

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