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

STRUCTURE OF A SHIPPING COMPANY UNIT 32 STRUCTURE OF A SHIPPING COMPANY

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

Unit 32

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

Organisation chart Unit 32

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

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

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

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

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

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

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

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

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

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

(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

Unit 32