1. 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 Tomislav Skračić, MA Undergraduate English Course for MARITIME MANAGERS 6th Semester

2. Fleet management Unit 32

3. Fleet management  Fleet planning and fleet management are the important tasks of each shipping company.  They involve various criteria but are particularly influenced by ship classification, by the market(s) in which the ships operate and by the commodities carried.  The first objective is for the board of directors to define the business plan. The latter will set out the clear financial objectives of the fleet.  They must be market and budget driven and all participants need to be committed to meeting these objectives. Unit 32

4.  The job of the fleet manager is to respond to the business plan, working at all times within the legal framework of the maritime industry and its associates, with ship safety remaining paramount at all times.  The fleet manager needs to keep in touch with the market environment, especially the strategies adopted by competitors.  He or she has to make sure that fleet capacity resources are matched to the market forecast and are reflected in the budget and sailing programme. Unit 32

5.  Maximum resources must be available at peak periods.  The sailing programme needs special attention with regard to port charges, bunker facilities, shipyard location, port technology, port navigation resources, optimum speed compatible with cost, cargo transhipment cost, port infrastructure, turn-round time.  Bunkering, ship repairs and ship surveys should be undertaken at strategically located ports and shipyards. Unit 32

6.  Pilotage and towage dues can prove to be expensive and the fleet manager needs to explore opportunities to cut such costs through obtaining pilotage exemption and installing transverse propulsion units.  Crew management is one of the critical cost areas in fleet management, and the fleet manager should examine various options, including offshore crews and the outsourcing of management, provided that these options are favourable to ship safety and the ISM Code. Unit 32

7.  The fleet manager must work closely with all the corporate departments, particularly the marketing department, and has to keep in touch with the shipbroker and port agents to ensure that the fleet attains optimum performance at all times. Unit 32

8.  Forward planning is essential and full use should be made of the computer database and on-line access throughout the company and its maritime activities.  In addition to the Internet and e-mail, satellite communication must be maintained with the crew.  Finally, regular meetings must be held to monitor performance against budget. Unit 32

9. Exercises  1. Answer the following questions: a)What are the criteria that particularly affect the fleet planning and management? b)What does a business plan include? c)What are the essential tasks of a fleet manager? d)What does the fleet manager need to pay special attention to when defining the sailing programme? e)How can pilotage and towage dues be decreased or eliminated? f)What is an offshore crew? g)Who works closely with the fleet manager to ensure the optimum performance of the fleet? h)How is the communication carried out? i)Why are regular meetings necessary? Unit 32

10.  2. Fill in the gaps with the following nouns: competition, dry-dock, route, run, scheduling, trade, vessel. OPENING A NEW LINE The decision to open up a new ____________ or line is fundamental and will require a special research team. The shipping company has to consider not only the supply and demand on the new possible routes, but also the strength of the ____________, the conference involved, and whether they will accept, reject or tolerate someone joining the ____________. If it is decided to join the conference, many of the questions concerning ____________ such as sailing dates, ports and frequency of service will be determined by the conference. Once the ____________ is established, the line manager must maintain schedules and combat the problems of delays, breakdowns, strikes, and the annual ____________. For tramp ships, the problem is to charter the ____________ out to obtain a maximum profit to the company. Unit 32

11.  3. Make short sentences using the following structures (verb forms can not be changed):  Group A: has been committed to, will meet the objectives / needs / standards / criteria, implemented by, at peak periods, are cost effective, held a meeting, making sure that, with regard to, turn-round time.  Group B: irrespective of, responsibility is delegated, is headed by, has been in charge of / responsible for, will appoint, dealing with, are engaged / involved in, came into force, set up, was founded.  Group C: of vital importance to / in, for various reasons, increasing in, tends to, beyond the reach, state subsidies, there is a need for, at all levels, could lead to, non- related. Unit 32