1. Tomislav Skračić, MA Undergraduate English Course for MARITIME MANAGERS 6th Semester
Essential reading:
T. Skračić, Waypoint – English Textbook for Maritime Students, Pomorski fakultet, Split 2010, Units 29-33
T. Trappe & G. Tullis, Intelligent Business, Longman 2005

2. STRUCTURE OF A SHIPPING COMPANY
UNIT 32
STRUCTURE OF A SHIPPING COMPANY

3. Glossary:
trade, liner company, tramp, delegate responsibility, board of directors, managing director (CEO), senior / junior management, departments, liaison, HR, PR, I&T, R&D, performance against budget, business plan, fleet manager, scheduling, market demand / forecast, fleet capacity resources, peak periods, sailing programme, ports of call, overhauls / surveys, security policy, non-core business, diversification, profit margins, operating costs, state subsidies, merger, acquisition (take over), stake / share in, joint venture, offshore crews, outsourcing of management
Unit 32

4. Unit 32

5. The structure of a shipping company is determined primarily by the nature of the trade in which it operates and by the scale of its activities
The structure of a tramp operator will generally be different from that of a much larger liner company
Irrespective of the size of the company, its structure should be designed to permit swift decision-making
Unit 32

6. Organisation chart
Unit 32

7. The Board often include partners such as law and business consultants
Headed by the chairman or president, the Board of Directors is responsible for policy decisions and strategy
The Board often include partners such as law and business consultants
If the company is fully or partly state-owned, politicians are appointed to the Board
Unit 32

8. The Board usually appoints a Managing Director or Chief Executive Officer (CEO), who has overall responsibility for implementing the corporate policy and strategy, and for the running of the business
The secretary is in charge of legal matters and administration in general
Senior managers head the various departments or functions within the company
Unit 32

9. Finance department
This department controls the money flow and is responsible for annual accounts, audits, credit control...
They are also responsible for producing financial data necessary to make decisions concerning the budget, business plan and other documents
Unit 32

10. Personnel department (Human Resources)
This department is in charge of recruiting shore and marine staff
It advertises the jobs or positions, selects the most suitable candidates, and organises interviews
Unit 32

11. Marketing department
Marketing in shipping as in any other business involves market research, product and service analysis, traffic and market development, promotions, and the like
One of the most important tasks of this department is liaison with port, travel and overseas agents
If PR department has not been set up within the company, marketing department is in charge of public and customer relations
Unit 32

12. Operations department (Fleet management)
Crucial department for a shipping company
The main concern is to maximise the economic employment of the ship
Another specific activity of this department is scheduling – deciding where to send the ships and when
Coordination is essential, not only among the other departments but also with the ship, the shipbroker and the agents
Unit 32

13. If the Insurance department has not been established within the company, the Operations department and the Fleet manager will deal with all insurance formalities and settlement of legal claims
The function of the fleet manager will be discussed in more detail later.
Unit 32

14. Technical department
It is the department which keeps the ships seaworthy
It is in charge of ship overhauls and is engaged in technical repairs, maintenance research and naval architecture
Unit 32

15. Information and Technology department
Activities of this department include:
IT budgets
IT contracts
IT research
IT planning
IT development.
Unit 32

16. DPA & CSO department
This department is in charge of the implementation of the International Ship and Port Facility Security Code (ISPS)
The Code was initiated as part of the US government's response to the September 11th terrorist attacks
It came into force in 2004 as an amendment to the SOLAS Convention
Unit 32

17. (Chief Security Officer)
DPA
(Designated Person)
CSO
(Chief Security Officer)
The responsibility of the DPA is to assure the quality and safety of the operation process
He implements, coordinates, monitors, and evaluates the Quality Management System
The duty of the CSO is to develop a culture of security
He leads staff members who are responsible for promoting and enforcing security policies within an enterprise or division
Unit 32

18. Unit 32