Organization of shipping companies Marina Zanne, M. Sc. Marina Organization of shipping companies Marina Zanne, M.Sc. Marina.Zanne@fpp.uni-lj.si

Introduction Development: ship owner = ship operator = trader = captain ship owner = ship operator = trader ship owner is not necessarily a ship operator Ship operator = shipping company = a company that provides maritime transport of goods or passengers = the most important component in seaborne trade provision

Introduction The company is formed to fulfill the needs that are recognized in our living environment. Shipping company faces a challenging environment  market cycles  operational risk, market risk, liquiduty risk, credit risk.

Shipping company Shipping company is an open, dynamic, complex, partially autonomous, goals driven social system that tries to combine the limited resources in a best possible way in order to achieve the most rational production and in this way to use the given possibilities to the max.

Main elements in managing the ships Drewry; Ship management (2006), p. 2

Main elements in managing the ships Drewry; Ship management (2006), p. 26

Shipping company A bigger organization will normally consist of the head office, the ships, offices abroad and a network of business connections such as shipbrokers, agents, stevedores, etc. These companies are usually independent companies with whom the big company has fixed contracts.

Functional organization Such organization is not good for big companies working in a dynamic market, which martime market for sure is. . . .

Functional organization Unstable crews, lack of communication (or too slow communication), poor overall efficiency

Matrix type organization Decentralisation of management  higher motivation and initiative aboard the ships  free and interactive relations, fleet leader on shore-side Better control of expenses

Branch type organization Much better for big companies where profit centers can be organized. Board of managers addresses the issues that are important for the entire company. . . . . . .

Shipping company Smaller companies usually outsource majority of “common” activities (whicha are usually found in big companies), such as crewing, accounting, technical issues or even fleet development  after doing the CBA.

Sources & further reading Stopford M. (2009), Maritime eonomics Bielic - Influence of shipping company organization on ship's team work effectiveness The organisation of a shipping company, Charter parties, General average by Galvagnon/Pearson ENMM Marseille 2002