This document discusses a study on cost optimization in ship management. The study aims to identify the dominant factors that affect costs in ship management and propose solutions to reduce costs. It does this through three phases - investigating cost factors, using fuzzy logic to identify controllable factors that significantly impact costs, and developing proposals based on these dominant factors. The findings help understand key cost drivers in the industry and provide data for organizational changes to reduce ship management expenses. Commercial management focuses on securing vessel income while technical management focuses on maintaining ship operations and functions, with both impacting operating costs which are the main expenditures for ship owners.
Discussion should 250 wordsDiscuss the transporters role, th.docxpetehbailey729071
Discussion should 250 words:
Discuss the transporters role, the port’s role and the government’s role in controlling invasive species and other hazards inherent in the movement of goods, goods themselves, and their packaging, specifically addressing the management of wastes at port activities as part of the total solution.
·
Economic Model and Environmental Considerations of a Port
Introduction
The lesson this week explores additional metrics involving port performance. In this lesson, we will:
Distinguish major drivers on port costs, prices and revenue, and
Examine and evaluate ecological and environmental issues that arise from port operations and related ocean going movement of goods
Discuss controlling invasive species
Readings include the assigned Chapters from the text; Environmental Regulatory Process: Does it Work Dredging U.S. Ports, linked
here
; and, and a video entitled 12 Days of Xmas Countdown Day 7 - Solar Vessel-1, linked
here
.
Port Throughput Considerations
Assessing the economic vitality of a port is a complex effort. According to Talley (2007), a port will want to increase its “profit” by maximizing its throughput while minimizing its costs and resources utilized. Port throughput is influenced by the price a port charges for its services. As a result, what motivation does a port have for meeting environmental regulations?
Economics in the shipping industry are affected by service attributes such as reliability, transit times, and trip frequency. But, the most important criterion in this industry almost always bears on pricing. Shipping price influences modal and/or carrier choice. Decision makers constantly seek accurate real-time and future as fundamental and prerequisite elements of their economic formulas that drive their decisions. This analysis is performed to specifically mitigate known and unknown risks involving the variability of freight rates.
Planners faced with making these shipping decisions seek to maximize their available capital, and are often faced with investment alternatives with widely different risk/reward returns. The decisions are magnified by the sheer size of the investments in the shipping business, by investments that are often volatile. These decisions are shaped by the shipper’s risk profile and quite often expose a company’s aversion to or acceptance of operational risk. From my experience, cash flow also is a major factor in operational decisions, particularly when funds are limited, or at the Federal fiscal year end when funds must be spent or lost (for Federally-funded projects).
According to Cullinanea, Notteboomb, Sanchezc, & Wilmsmeierd (2012), shipping decisions may relate to staying out of the business at a given point in time or making a disinvestment, such is the existential nature of the capital-intensive decisions. More often, however, concern more about the selection mix of vessels such that investmenst are diversified not unlike the working of a m.
This document discusses a strategic investment decision model for maximizing financial performance in dry bulk shipping businesses. It proposes that managers should time their purchases of ships to low points in the market and their sales to high points to benefit from capital gains. The model is tested using a case study comparing investing in 2003 during a market low versus 2005 during a recovery. The 2003 investment earned $68.4 million compared to $14.8 million for the 2005 investment by benefiting from a large capital gain through well-timed asset plays. The analysis shows the importance of investment timing for financial performance in the volatile dry bulk shipping market.
The document discusses factors that influence customer retention towards room services by analyzing the case of Swiss Inn Sungai Petani hotel in Malaysia. It describes the various departments and facilities at Swiss Inn Sungai Petani, including 101 rooms, 21 suite rooms, a health spa with sauna, tennis courts, a gym, and 12 function rooms. The quality of services delivered and ability to meet customer expectations are identified as critical for customer satisfaction and retention in the hotel services industry.
Improving Sales In Freight Forwarding by Capt Onur Y Uranli MSOnur Uranli
This document is a thesis that investigates how modern technology can help freight forwarders and logistics companies improve sales while promoting accuracy and competence. It examines how information technology systems like EDI, bar code scanning, and website tracking can help freight forwarders save importers and exporters time and money, thereby improving sales and revenues. The thesis will analyze specific case studies of how freight forwarders, logistics companies, and retailers have successfully implemented information technology systems to achieve positive results.
This document appears to be a student project report on a comparative study of two low-cost airlines: Air Asia and Norwegian Air Shuttle. It includes an introduction to the airline industry and low-cost carriers. The objective is to analyze and compare the two airlines' strategies, pricing, marketing, CSR and achievements. Secondary research methods are used, gathering data from the airlines' websites and other online sources. The report also provides profiles of each airline, covering their history, management, vision and goals. It then compares the airlines using SWOT analysis, STP analysis and other metrics.
The Australian Textile, Clothing And Footwear EssayHeidi Owens
Here are the key advantages and disadvantages of airplanes:
Advantages:
- Very fast mode of transportation. Airplanes can transport people and goods over long distances much faster than boats or trains. This saves a significant amount of travel time.
- Convenient for passengers. Flying avoids the hassle of long road or sea journeys, reducing travel time and fatigue. Air travel allows people to reach their destinations much more quickly and conveniently.
- Reliable for time-sensitive cargo. Perishable goods and other time-sensitive cargo such as documents can be transported reliably by air in a matter of hours rather than days. This makes air transport well-suited for these types of goods.
Disadvantages:
This document proposes a comprehensive framework for assessing port performance using multiple perspectives. It discusses limitations of prior research in focusing only on economic indicators and measurable data. The framework uses Quality Function Deployment (QFD) to consider expectations of various stakeholders from social, economic, political, and ethical dimensions. A literature review found most studies focus on container terminals and throughput volumes. The document argues port assessment needs a broader, more strategic approach beyond static data on efficiency. It aims to address gaps and develop a holistic method for evaluating ports as complex business units.
Marine and Energy Pricing Paper - FINALDarren Farr
This document discusses methods for pricing marine and energy risks such as hull insurance. For hull insurance, factors like vessel size, type, age, and flag are used to rate risks on an exposure basis using experience data. Qualitative risk management factors are also considered. Ancillary covers like increased value and loss of hire are typically priced on an exposure basis due to low frequency. Catastrophe losses must be accounted for. The document provides sources for marine insurance data and details pricing approaches for various marine classes.
Discussion should 250 wordsDiscuss the transporters role, th.docxpetehbailey729071
Discussion should 250 words:
Discuss the transporters role, the port’s role and the government’s role in controlling invasive species and other hazards inherent in the movement of goods, goods themselves, and their packaging, specifically addressing the management of wastes at port activities as part of the total solution.
·
Economic Model and Environmental Considerations of a Port
Introduction
The lesson this week explores additional metrics involving port performance. In this lesson, we will:
Distinguish major drivers on port costs, prices and revenue, and
Examine and evaluate ecological and environmental issues that arise from port operations and related ocean going movement of goods
Discuss controlling invasive species
Readings include the assigned Chapters from the text; Environmental Regulatory Process: Does it Work Dredging U.S. Ports, linked
here
; and, and a video entitled 12 Days of Xmas Countdown Day 7 - Solar Vessel-1, linked
here
.
Port Throughput Considerations
Assessing the economic vitality of a port is a complex effort. According to Talley (2007), a port will want to increase its “profit” by maximizing its throughput while minimizing its costs and resources utilized. Port throughput is influenced by the price a port charges for its services. As a result, what motivation does a port have for meeting environmental regulations?
Economics in the shipping industry are affected by service attributes such as reliability, transit times, and trip frequency. But, the most important criterion in this industry almost always bears on pricing. Shipping price influences modal and/or carrier choice. Decision makers constantly seek accurate real-time and future as fundamental and prerequisite elements of their economic formulas that drive their decisions. This analysis is performed to specifically mitigate known and unknown risks involving the variability of freight rates.
Planners faced with making these shipping decisions seek to maximize their available capital, and are often faced with investment alternatives with widely different risk/reward returns. The decisions are magnified by the sheer size of the investments in the shipping business, by investments that are often volatile. These decisions are shaped by the shipper’s risk profile and quite often expose a company’s aversion to or acceptance of operational risk. From my experience, cash flow also is a major factor in operational decisions, particularly when funds are limited, or at the Federal fiscal year end when funds must be spent or lost (for Federally-funded projects).
According to Cullinanea, Notteboomb, Sanchezc, & Wilmsmeierd (2012), shipping decisions may relate to staying out of the business at a given point in time or making a disinvestment, such is the existential nature of the capital-intensive decisions. More often, however, concern more about the selection mix of vessels such that investmenst are diversified not unlike the working of a m.
This document discusses a strategic investment decision model for maximizing financial performance in dry bulk shipping businesses. It proposes that managers should time their purchases of ships to low points in the market and their sales to high points to benefit from capital gains. The model is tested using a case study comparing investing in 2003 during a market low versus 2005 during a recovery. The 2003 investment earned $68.4 million compared to $14.8 million for the 2005 investment by benefiting from a large capital gain through well-timed asset plays. The analysis shows the importance of investment timing for financial performance in the volatile dry bulk shipping market.
The document discusses factors that influence customer retention towards room services by analyzing the case of Swiss Inn Sungai Petani hotel in Malaysia. It describes the various departments and facilities at Swiss Inn Sungai Petani, including 101 rooms, 21 suite rooms, a health spa with sauna, tennis courts, a gym, and 12 function rooms. The quality of services delivered and ability to meet customer expectations are identified as critical for customer satisfaction and retention in the hotel services industry.
Improving Sales In Freight Forwarding by Capt Onur Y Uranli MSOnur Uranli
This document is a thesis that investigates how modern technology can help freight forwarders and logistics companies improve sales while promoting accuracy and competence. It examines how information technology systems like EDI, bar code scanning, and website tracking can help freight forwarders save importers and exporters time and money, thereby improving sales and revenues. The thesis will analyze specific case studies of how freight forwarders, logistics companies, and retailers have successfully implemented information technology systems to achieve positive results.
This document appears to be a student project report on a comparative study of two low-cost airlines: Air Asia and Norwegian Air Shuttle. It includes an introduction to the airline industry and low-cost carriers. The objective is to analyze and compare the two airlines' strategies, pricing, marketing, CSR and achievements. Secondary research methods are used, gathering data from the airlines' websites and other online sources. The report also provides profiles of each airline, covering their history, management, vision and goals. It then compares the airlines using SWOT analysis, STP analysis and other metrics.
The Australian Textile, Clothing And Footwear EssayHeidi Owens
Here are the key advantages and disadvantages of airplanes:
Advantages:
- Very fast mode of transportation. Airplanes can transport people and goods over long distances much faster than boats or trains. This saves a significant amount of travel time.
- Convenient for passengers. Flying avoids the hassle of long road or sea journeys, reducing travel time and fatigue. Air travel allows people to reach their destinations much more quickly and conveniently.
- Reliable for time-sensitive cargo. Perishable goods and other time-sensitive cargo such as documents can be transported reliably by air in a matter of hours rather than days. This makes air transport well-suited for these types of goods.
Disadvantages:
This document proposes a comprehensive framework for assessing port performance using multiple perspectives. It discusses limitations of prior research in focusing only on economic indicators and measurable data. The framework uses Quality Function Deployment (QFD) to consider expectations of various stakeholders from social, economic, political, and ethical dimensions. A literature review found most studies focus on container terminals and throughput volumes. The document argues port assessment needs a broader, more strategic approach beyond static data on efficiency. It aims to address gaps and develop a holistic method for evaluating ports as complex business units.
Marine and Energy Pricing Paper - FINALDarren Farr
This document discusses methods for pricing marine and energy risks such as hull insurance. For hull insurance, factors like vessel size, type, age, and flag are used to rate risks on an exposure basis using experience data. Qualitative risk management factors are also considered. Ancillary covers like increased value and loss of hire are typically priced on an exposure basis due to low frequency. Catastrophe losses must be accounted for. The document provides sources for marine insurance data and details pricing approaches for various marine classes.
The document analyzes the performance of major and minor ports in India. It finds that while average turnaround time and output per ship have improved, efficiency is impacted by outdated infrastructure, overstaffing, and bureaucratic red tape. The document recommends increasing private sector participation, boosting capacity, strengthening supply chain connectivity, and providing ports more autonomy to improve competitiveness.
Running head TRANSPORTATION LOGISTICS MANAGEMENT 1T.docxtodd521
Running head: TRANSPORTATION LOGISTICS MANAGEMENT 1
TRANSPORTATION LOGISTICS MANAGEMENT 7
Transportation Logistics Management
Transportation Logistics Management
New Challenges within Transportation and Logistics Management
1. Introduction
In a world that has fully embraced globalization and regional trade, transportation has become one of the most important businesses processes which enable effective carriage of raw materials to the manufacturers and manufactured goods to the end user. Currently, all the means of transportation are effectively used depending on the preference of the client. This crucial business process has led to the emergence of the transport logistics managers whose main role is to ensure that goods being transported reach their destination safely and on time. Over the years, transportation logistics has become one the most important process in the supply chain of any business as the key to satisfying customer demands and gaining a competitive advantage. However, the growth of the transportation and logistics industry has led to the development of new challenges over the years which continue to affect logistics management. The main challenge within the transportation and logistics management results from planning and risk management which has been caused by the changing environments within the industry. This paper seeks to investigate some of the planning and risk management challenges by answering the question; “what are the new challenges facing logistics managers and how can they be tackled?” It will outline three major challenges within transportation and logistics management and discuss probable solutions to each.
2. Literature Review
To research the challenges within transportation and logistics management, this paper will investigate the relationship between logistics management and supply chain management so as to specifically focus on the former throughout the research. This is because there is a strong relationship between transportation logistics management and the supply chains in that the former has become a critical element in supply chain management (Wang et al. 2016). The use of these terms in different resources has further expounded on this relationships forming the definition of these terms as follows: Logistics management is the act of organizing for the commercial transportation of goods or raw materials by ensuring that the transportation systems maintain an effective flow whereby the products being transported can reach the receiver safely and on time (Christopher, 2016). This activity incorporates different procedures such as recording data and information about the flow of goods, warehousing, and transportation.
According to Wang et al. (2016), it is the role of transportation and logistics managers to ensure quality handling of all the data and figures which account for daily operations and ensure that there is smooth coordination of tasks within a tran.
The document discusses various modal options for transportation in global supply chain management, including their advantages and disadvantages. It examines sea routes, air transportation, and land transportation via road and railways. While sea transportation is the cheapest option, it is also the slowest. Air transport is very fast but the most expensive. Rail and road transport provide efficient land-based options, but require appropriate infrastructure between locations. There are many trade-offs to consider in establishing an effective global supply chain.
1) The strategic analysis provides an overview of the global container shipping market, which was valued at $8.7 billion in 2020 and is expected to reach $12.3 billion by 2027.
2) The top five companies control over 50% of the market, with AP Moller-Maersk being the largest player at around 16% market share.
3) Future growth is expected to be driven by increasing global trade, though the COVID-19 pandemic may continue impacting supply chains in the short term. Technological advances and sustainability efforts will also shape the industry going forward.
This document discusses key concepts in logistics and supply chain management. It covers topics like demand planning, sourcing, production planning, distribution, developing logistics as a core competency, life cycle planning framework, basic service capabilities like availability and on-time delivery, transport functionality and principles, regulations, transport economics and pricing strategies, warehousing functionality and operating principles. The overall document provides an overview of the different components and considerations involved in effective logistics and supply chain management.
EasyJet is a low-cost airline that focuses on operational efficiency through standardization, online booking, and point-to-point routes to keep costs low. It prioritizes low fares, on-time performance, and convenience through primary airports to attract price-sensitive customers. An important operational decision is fleet commonality, where EasyJet operates an all-Airbus fleet to reduce training and maintenance costs.
Next Generation Integrated Treasury and Trading for Energy and Commodity Comp...CTRM Center
Energy producers, traders and consumers today face a challenging trading environment with more regulatory oversight, lower prices, increasing costs and almost constant volatility. As a result forward thinking energy companies are already adopting a more closely integrated treasury and trading approach, a potentially overlooked opportunity by many. Typically, trading and treasury are separate areas of business with limited or no integration between them. The traders work to sell commodities at the best price or to profit from trading, while the treasury function with its concern over available cash, navigating future investments and doing so in the right currency and at the right location, has a range of responsibilities, including FX and IR hedging, broader credit management, debt and capital management and more. Usually, the treasury department gets a fixed time view of trading positions to work with and can miss opportunities to protect profits or control costs as a result as these exposures change rapidly. Even large oil and gas majors have experienced the situation where trading has a good month but FX rates moved against them to give an entirely different result. Despite believing that they were hedged, FX markets went against the company leaving it with significantly eroded traded profits.
Aviation Case Study presentation project
objective
1. To promote learning about the air transportation system.
2. To practice analytical thinking and presentation skills
3. To exchange knowledge and experiences between students.
Target group
• First year students, Air Transport System subject.
• Last period of the Air Transport System course (December 2023)
• Activity: Study interesting Aviation Case Study examples.
Operation
1. Divide into groups to present their work.
2. Present work in groups for 10-12 minutes.
Judging criteria
accuracy of information
Creativity in presentation
Presentation skills
This document provides a summary of a dissertation analyzing the practical application of modeling within the marine excess of loss business. It begins with an introduction noting the perceived limitations of modeling in marine due to lack of standardized solutions and data. It then reviews the history of marine excess of loss modeling and key loss characteristics. Several modeling techniques are explored including the Maxwell-Boltzmann, Bose-Einstein and Fermi-Dirac distributions to model cargo, hull and energy exposures. The document concludes that while modeling has limitations in marine, it provides value when used appropriately and with an understanding of its weaknesses. Further research on other marine classes and how to model "clashing interests" is recommended.
The document discusses various factors to consider in port investment and financing decisions. It identifies key objectives such as economic efficiency, equity, and environmental quality. It also outlines approaches to evaluate investments, factors that influence decisions, and financial metrics to assess alternatives like internal rate of return, net present value, and payback period.
This document summarizes an empirical research study on the key stages of marketing implementation in the largest tanker and liner shipping companies in the world. The research identifies 5 key stages: 1) diagnosis, 2) planning, 3) organization, 4) implementation, and 5) control. Under diagnosis, it details the processes of developing a marketing information system, analyzing opportunities/threats, segmenting the shipping market, evaluating segments, and choosing target markets. It then describes the planning stage of developing marketing strategies and programs. Finally, it provides examples of how some large shipping companies have implemented selective strategies to target different market segments.
Measuring the performance of your fleet by clearly defining strategy and tacticsTristan Wiggill
A presentation by Christopher Hill, fleet operations specialist, Altech Netstar, at the 1st annual Fleet Management Conference held at the Indaba Hotel in Johannesburg, South Africa.
Ryanair was founded in 1985 with two aircraft flying one route. By 2010 it had transformed into Europe's largest low-cost airline with 232 aircraft flying 153 routes. Ryanair's strategy has been to offer the lowest fares possible to become Europe's No. 1 low-cost carrier. This paper analyzes Ryanair's competitive position, strategic capabilities, and sustainability of its strategies using Porter's Five Forces framework and a SWOT analysis. Ryanair's strengths include its leadership in the low-cost airline industry, but its emphasis on low costs has come at the expense of customer service, which it should seek to improve to build loyalty.
(ReflectionHighlights the need for further research, based onVannaJoy20
(
Reflection
Highlights the need for further research, based on the economic impacts of renewable energy developments on the Welsh tourism industry
(particularly industry based research)
This
Report
contributes to raising awareness regarding
the economic impacts that onshore wind energy has on the tourism sector in Wales
.
Further research into economically focused case studies is on going
Further Development of Supporting Theory is ongoing
Porter’s Diamond was taken out of V2 due to a difficulty in linking to the other models and relevance to the objectives.
) (
Contribution
Will show a clear understanding of the size, growth, trends and success factors of the tourism industry in the 7 Strategic Search Areas
by using market analysis to determine
the size and future trends of the sector, using desk research from industry and government data and also using survey to capture survey from local stakeholders
.
To determine the economic impact of proposed developments on the tourism industry; by using number of analytical tools to look at the benefits and
dis
-benefits
, such as a PEST analysis focusing on economic trends to measure potential economic impacts. Also using a Cost Benefit Analysis to see whether the potential benefits outweigh the potential
dis
benefits (particularly at an economic level)
T
o determine how Wind Farm developments could enable tourist activity in Wales
, by using an input-output analysis to measure the relationship between wind farm development and the tourism industry and also by looking at the economic effects of this relationship in terms of multipliers.
Shall provide complimentary support to the achievement of the key project aims, including; potential for positive economic impact in the Welsh tourism sector
) (
Supporting Theory
Objective Based:
Stakeholder Mapping
Mendelow
(1991)
–
to identify key stakeholders and to identify interests of stakeholders in relation to economic impacts of tourism in Wales.
Also identifies possible conflict of interests and can be used to look deeply at the relationships between these stakeholders.
Market Analysis
Kress et al (1994)
–
mainly used to assess the size, growth and future trends of the tourism sector. Size will focus on volumes (turnover, visitors, GVA). Trends focuses on potential changes in sector (opportunities + threats
)(
could change market size). Also uses desk research for industry figures (Govt, trade etc) as well as attitude surveys.
PEST Analysis
Used
to look at the political, economic, socio cultural, technological changes in the business environment
.
Helps to identify potential opportunities and threats (particular focus on economical side).
Cost Benefit Analysis
Depuit
(1844)
– used to measure the positive and negative consequences of a project
over a period of time
, while including s
ocial and environmental impacts.
Used to see if it is economically beneficial to the regions in terms of tourist activity.
Can be a quantifiab ...
The expansion of the Panama Canal has positively impacted trucking transportation in the Dallas area. The expansion allows for larger ships and more goods to be transported through the canal at a lower cost. This has increased trucking capacity and the efficiency of logistics distribution in Dallas. As a central location between major cities, Dallas has benefited from increased infrastructure and facilities to support the growing volume of goods transported by truck both nationally and internationally due to the Panama Canal expansion.
This document provides an introduction to a book collecting two master's dissertations on risk management in shipping. The first thesis from 2005 examines risk management systems of three developing Turkish chemical tanker companies. It used interviews and documentation to analyze commercial and operational management practices. The second thesis from 2016 compares regulation and inspection regimes in tanker and container shipping, collecting primary data through surveys and secondary data research. Key findings noted differences in safety cultures and regulatory oversight between the sectors. The introduction aims to make the research accessible and provide lessons for companies looking to expand fleets.
Role and Challenges Related to Inland Container Depot (ICD).
This case focuses on highlighting the pivotal role of Inland Container Depots (ICDs) in trade from India to the globe. ICDs function as vital bridges connecting various logistics activities like freight forwarding, cargo handling and distribution. These hubs offer seamless intermodal transportation, optimizing supply chains and trade logistics. The essence of ICDs revolves around strategic centralized cargo handling facilities, bridging major seaports and airports to inland distribution/storage areas. As against these. The conventional systems grapple with bottlenecks, causing escalated costs, delays, and inefficiencies. ICDs counter these issues by streamlining
cargo consolidation, deconsolidation, and storage, interlinking various modes of transportation. However, multifaceted challenges require comprehensive solutions. Challenges encompass infrastructure constraints, customs intricacies, internal congestion, and lack of specialized facilities. A comprehensive strategy necessitates infrastructure development, regulatory streamlining, technological integration, and strategic planning. Lasco Shipping's proactive approach in understanding these intricate operations positions them to navigate the evolving global trade landscape efficiently. Insights garnered from ICD visits promise to streamline their operations, fortify customer service, and adeptly navigate international trade complexities.
The key elements of the Christian worldview are faith, love, forgiveness, and living in Christ. These elements are fundamental to Christ's teachings and reflect the author's own worldview. Living in Christ incorporates aspects like praise, prayer, and witnessing. However, the Christian worldview should focus more on redemption than reconciling the Bible with science. The overarching themes of the Bible can be summarized as creation, humanity, sin/fall, and redemption.
The document provides instructions for requesting writing assistance from HelpWriting.net. It outlines a 5-step process: 1) Create an account with a password and email. 2) Complete a 10-minute order form providing instructions, sources, and deadline. 3) Review bids from writers and choose one based on qualifications. 4) Review the completed paper and authorize payment if satisfied. 5) Request revisions until needs are fully met, with a refund option for plagiarized content.
Argumentative Essay Topics Dealing With Children - 10Heather Strinden
The document provides instructions for using the writing assistance website HelpWriting.net in 5 steps:
1) Create an account with a password and email.
2) Complete a 10-minute order form with instructions, sources, and deadline.
3) Review bids from writers and choose one based on qualifications.
4) Review the completed paper and authorize payment if satisfied.
5) Request revisions until fully satisfied, with a refund option for plagiarism.
1. The document discusses John Dickson Carr's extensive biography on Sir Arthur Conan Doyle. It analyzes Doyle's life and personality through the lens of Alfred Adler's Individual Psychology theory.
2. Sir Arthur Conan Doyle was born in 1859 in England to Irish Catholic parents. He excelled at school but found the classes uninspiring. He loved history but in a more romantic style.
3. Adler's personality theory emphasizes how culture and society influence personality development and behaviors. Analyzing Doyle's life through this lens provides insights into his stubbornness and rebellious acts as a youth.
More Related Content
Similar to A STUDY ON COST OPTIMIZATION IN THE SHIP MANAGEMENT
The document analyzes the performance of major and minor ports in India. It finds that while average turnaround time and output per ship have improved, efficiency is impacted by outdated infrastructure, overstaffing, and bureaucratic red tape. The document recommends increasing private sector participation, boosting capacity, strengthening supply chain connectivity, and providing ports more autonomy to improve competitiveness.
Running head TRANSPORTATION LOGISTICS MANAGEMENT 1T.docxtodd521
Running head: TRANSPORTATION LOGISTICS MANAGEMENT 1
TRANSPORTATION LOGISTICS MANAGEMENT 7
Transportation Logistics Management
Transportation Logistics Management
New Challenges within Transportation and Logistics Management
1. Introduction
In a world that has fully embraced globalization and regional trade, transportation has become one of the most important businesses processes which enable effective carriage of raw materials to the manufacturers and manufactured goods to the end user. Currently, all the means of transportation are effectively used depending on the preference of the client. This crucial business process has led to the emergence of the transport logistics managers whose main role is to ensure that goods being transported reach their destination safely and on time. Over the years, transportation logistics has become one the most important process in the supply chain of any business as the key to satisfying customer demands and gaining a competitive advantage. However, the growth of the transportation and logistics industry has led to the development of new challenges over the years which continue to affect logistics management. The main challenge within the transportation and logistics management results from planning and risk management which has been caused by the changing environments within the industry. This paper seeks to investigate some of the planning and risk management challenges by answering the question; “what are the new challenges facing logistics managers and how can they be tackled?” It will outline three major challenges within transportation and logistics management and discuss probable solutions to each.
2. Literature Review
To research the challenges within transportation and logistics management, this paper will investigate the relationship between logistics management and supply chain management so as to specifically focus on the former throughout the research. This is because there is a strong relationship between transportation logistics management and the supply chains in that the former has become a critical element in supply chain management (Wang et al. 2016). The use of these terms in different resources has further expounded on this relationships forming the definition of these terms as follows: Logistics management is the act of organizing for the commercial transportation of goods or raw materials by ensuring that the transportation systems maintain an effective flow whereby the products being transported can reach the receiver safely and on time (Christopher, 2016). This activity incorporates different procedures such as recording data and information about the flow of goods, warehousing, and transportation.
According to Wang et al. (2016), it is the role of transportation and logistics managers to ensure quality handling of all the data and figures which account for daily operations and ensure that there is smooth coordination of tasks within a tran.
The document discusses various modal options for transportation in global supply chain management, including their advantages and disadvantages. It examines sea routes, air transportation, and land transportation via road and railways. While sea transportation is the cheapest option, it is also the slowest. Air transport is very fast but the most expensive. Rail and road transport provide efficient land-based options, but require appropriate infrastructure between locations. There are many trade-offs to consider in establishing an effective global supply chain.
1) The strategic analysis provides an overview of the global container shipping market, which was valued at $8.7 billion in 2020 and is expected to reach $12.3 billion by 2027.
2) The top five companies control over 50% of the market, with AP Moller-Maersk being the largest player at around 16% market share.
3) Future growth is expected to be driven by increasing global trade, though the COVID-19 pandemic may continue impacting supply chains in the short term. Technological advances and sustainability efforts will also shape the industry going forward.
This document discusses key concepts in logistics and supply chain management. It covers topics like demand planning, sourcing, production planning, distribution, developing logistics as a core competency, life cycle planning framework, basic service capabilities like availability and on-time delivery, transport functionality and principles, regulations, transport economics and pricing strategies, warehousing functionality and operating principles. The overall document provides an overview of the different components and considerations involved in effective logistics and supply chain management.
EasyJet is a low-cost airline that focuses on operational efficiency through standardization, online booking, and point-to-point routes to keep costs low. It prioritizes low fares, on-time performance, and convenience through primary airports to attract price-sensitive customers. An important operational decision is fleet commonality, where EasyJet operates an all-Airbus fleet to reduce training and maintenance costs.
Next Generation Integrated Treasury and Trading for Energy and Commodity Comp...CTRM Center
Energy producers, traders and consumers today face a challenging trading environment with more regulatory oversight, lower prices, increasing costs and almost constant volatility. As a result forward thinking energy companies are already adopting a more closely integrated treasury and trading approach, a potentially overlooked opportunity by many. Typically, trading and treasury are separate areas of business with limited or no integration between them. The traders work to sell commodities at the best price or to profit from trading, while the treasury function with its concern over available cash, navigating future investments and doing so in the right currency and at the right location, has a range of responsibilities, including FX and IR hedging, broader credit management, debt and capital management and more. Usually, the treasury department gets a fixed time view of trading positions to work with and can miss opportunities to protect profits or control costs as a result as these exposures change rapidly. Even large oil and gas majors have experienced the situation where trading has a good month but FX rates moved against them to give an entirely different result. Despite believing that they were hedged, FX markets went against the company leaving it with significantly eroded traded profits.
Aviation Case Study presentation project
objective
1. To promote learning about the air transportation system.
2. To practice analytical thinking and presentation skills
3. To exchange knowledge and experiences between students.
Target group
• First year students, Air Transport System subject.
• Last period of the Air Transport System course (December 2023)
• Activity: Study interesting Aviation Case Study examples.
Operation
1. Divide into groups to present their work.
2. Present work in groups for 10-12 minutes.
Judging criteria
accuracy of information
Creativity in presentation
Presentation skills
This document provides a summary of a dissertation analyzing the practical application of modeling within the marine excess of loss business. It begins with an introduction noting the perceived limitations of modeling in marine due to lack of standardized solutions and data. It then reviews the history of marine excess of loss modeling and key loss characteristics. Several modeling techniques are explored including the Maxwell-Boltzmann, Bose-Einstein and Fermi-Dirac distributions to model cargo, hull and energy exposures. The document concludes that while modeling has limitations in marine, it provides value when used appropriately and with an understanding of its weaknesses. Further research on other marine classes and how to model "clashing interests" is recommended.
The document discusses various factors to consider in port investment and financing decisions. It identifies key objectives such as economic efficiency, equity, and environmental quality. It also outlines approaches to evaluate investments, factors that influence decisions, and financial metrics to assess alternatives like internal rate of return, net present value, and payback period.
This document summarizes an empirical research study on the key stages of marketing implementation in the largest tanker and liner shipping companies in the world. The research identifies 5 key stages: 1) diagnosis, 2) planning, 3) organization, 4) implementation, and 5) control. Under diagnosis, it details the processes of developing a marketing information system, analyzing opportunities/threats, segmenting the shipping market, evaluating segments, and choosing target markets. It then describes the planning stage of developing marketing strategies and programs. Finally, it provides examples of how some large shipping companies have implemented selective strategies to target different market segments.
Measuring the performance of your fleet by clearly defining strategy and tacticsTristan Wiggill
A presentation by Christopher Hill, fleet operations specialist, Altech Netstar, at the 1st annual Fleet Management Conference held at the Indaba Hotel in Johannesburg, South Africa.
Ryanair was founded in 1985 with two aircraft flying one route. By 2010 it had transformed into Europe's largest low-cost airline with 232 aircraft flying 153 routes. Ryanair's strategy has been to offer the lowest fares possible to become Europe's No. 1 low-cost carrier. This paper analyzes Ryanair's competitive position, strategic capabilities, and sustainability of its strategies using Porter's Five Forces framework and a SWOT analysis. Ryanair's strengths include its leadership in the low-cost airline industry, but its emphasis on low costs has come at the expense of customer service, which it should seek to improve to build loyalty.
(ReflectionHighlights the need for further research, based onVannaJoy20
(
Reflection
Highlights the need for further research, based on the economic impacts of renewable energy developments on the Welsh tourism industry
(particularly industry based research)
This
Report
contributes to raising awareness regarding
the economic impacts that onshore wind energy has on the tourism sector in Wales
.
Further research into economically focused case studies is on going
Further Development of Supporting Theory is ongoing
Porter’s Diamond was taken out of V2 due to a difficulty in linking to the other models and relevance to the objectives.
) (
Contribution
Will show a clear understanding of the size, growth, trends and success factors of the tourism industry in the 7 Strategic Search Areas
by using market analysis to determine
the size and future trends of the sector, using desk research from industry and government data and also using survey to capture survey from local stakeholders
.
To determine the economic impact of proposed developments on the tourism industry; by using number of analytical tools to look at the benefits and
dis
-benefits
, such as a PEST analysis focusing on economic trends to measure potential economic impacts. Also using a Cost Benefit Analysis to see whether the potential benefits outweigh the potential
dis
benefits (particularly at an economic level)
T
o determine how Wind Farm developments could enable tourist activity in Wales
, by using an input-output analysis to measure the relationship between wind farm development and the tourism industry and also by looking at the economic effects of this relationship in terms of multipliers.
Shall provide complimentary support to the achievement of the key project aims, including; potential for positive economic impact in the Welsh tourism sector
) (
Supporting Theory
Objective Based:
Stakeholder Mapping
Mendelow
(1991)
–
to identify key stakeholders and to identify interests of stakeholders in relation to economic impacts of tourism in Wales.
Also identifies possible conflict of interests and can be used to look deeply at the relationships between these stakeholders.
Market Analysis
Kress et al (1994)
–
mainly used to assess the size, growth and future trends of the tourism sector. Size will focus on volumes (turnover, visitors, GVA). Trends focuses on potential changes in sector (opportunities + threats
)(
could change market size). Also uses desk research for industry figures (Govt, trade etc) as well as attitude surveys.
PEST Analysis
Used
to look at the political, economic, socio cultural, technological changes in the business environment
.
Helps to identify potential opportunities and threats (particular focus on economical side).
Cost Benefit Analysis
Depuit
(1844)
– used to measure the positive and negative consequences of a project
over a period of time
, while including s
ocial and environmental impacts.
Used to see if it is economically beneficial to the regions in terms of tourist activity.
Can be a quantifiab ...
The expansion of the Panama Canal has positively impacted trucking transportation in the Dallas area. The expansion allows for larger ships and more goods to be transported through the canal at a lower cost. This has increased trucking capacity and the efficiency of logistics distribution in Dallas. As a central location between major cities, Dallas has benefited from increased infrastructure and facilities to support the growing volume of goods transported by truck both nationally and internationally due to the Panama Canal expansion.
This document provides an introduction to a book collecting two master's dissertations on risk management in shipping. The first thesis from 2005 examines risk management systems of three developing Turkish chemical tanker companies. It used interviews and documentation to analyze commercial and operational management practices. The second thesis from 2016 compares regulation and inspection regimes in tanker and container shipping, collecting primary data through surveys and secondary data research. Key findings noted differences in safety cultures and regulatory oversight between the sectors. The introduction aims to make the research accessible and provide lessons for companies looking to expand fleets.
Role and Challenges Related to Inland Container Depot (ICD).
This case focuses on highlighting the pivotal role of Inland Container Depots (ICDs) in trade from India to the globe. ICDs function as vital bridges connecting various logistics activities like freight forwarding, cargo handling and distribution. These hubs offer seamless intermodal transportation, optimizing supply chains and trade logistics. The essence of ICDs revolves around strategic centralized cargo handling facilities, bridging major seaports and airports to inland distribution/storage areas. As against these. The conventional systems grapple with bottlenecks, causing escalated costs, delays, and inefficiencies. ICDs counter these issues by streamlining
cargo consolidation, deconsolidation, and storage, interlinking various modes of transportation. However, multifaceted challenges require comprehensive solutions. Challenges encompass infrastructure constraints, customs intricacies, internal congestion, and lack of specialized facilities. A comprehensive strategy necessitates infrastructure development, regulatory streamlining, technological integration, and strategic planning. Lasco Shipping's proactive approach in understanding these intricate operations positions them to navigate the evolving global trade landscape efficiently. Insights garnered from ICD visits promise to streamline their operations, fortify customer service, and adeptly navigate international trade complexities.
Similar to A STUDY ON COST OPTIMIZATION IN THE SHIP MANAGEMENT (18)
The key elements of the Christian worldview are faith, love, forgiveness, and living in Christ. These elements are fundamental to Christ's teachings and reflect the author's own worldview. Living in Christ incorporates aspects like praise, prayer, and witnessing. However, the Christian worldview should focus more on redemption than reconciling the Bible with science. The overarching themes of the Bible can be summarized as creation, humanity, sin/fall, and redemption.
The document provides instructions for requesting writing assistance from HelpWriting.net. It outlines a 5-step process: 1) Create an account with a password and email. 2) Complete a 10-minute order form providing instructions, sources, and deadline. 3) Review bids from writers and choose one based on qualifications. 4) Review the completed paper and authorize payment if satisfied. 5) Request revisions until needs are fully met, with a refund option for plagiarized content.
Argumentative Essay Topics Dealing With Children - 10Heather Strinden
The document provides instructions for using the writing assistance website HelpWriting.net in 5 steps:
1) Create an account with a password and email.
2) Complete a 10-minute order form with instructions, sources, and deadline.
3) Review bids from writers and choose one based on qualifications.
4) Review the completed paper and authorize payment if satisfied.
5) Request revisions until fully satisfied, with a refund option for plagiarism.
1. The document discusses John Dickson Carr's extensive biography on Sir Arthur Conan Doyle. It analyzes Doyle's life and personality through the lens of Alfred Adler's Individual Psychology theory.
2. Sir Arthur Conan Doyle was born in 1859 in England to Irish Catholic parents. He excelled at school but found the classes uninspiring. He loved history but in a more romantic style.
3. Adler's personality theory emphasizes how culture and society influence personality development and behaviors. Analyzing Doyle's life through this lens provides insights into his stubbornness and rebellious acts as a youth.
Can Money Buy Happiness Essay - The Writing Center.Heather Strinden
The document discusses developing an effective human resource strategy for job performance. It outlines a conceptual framework involving 6 steps: 1) setting strategic direction, 2) designing the HR management system, 3) workforce planning, 4) generating required human resources, 5) investing in HR development and performance, and 6) assessing and sustaining organizational competence. The framework is applied to developing a strategy for the National Commission for Civic Education.
College Essay Essentials A Step-By-Step Guide To WritHeather Strinden
The passage discusses Jackie Robinson's impact on breaking racial barriers in professional sports. It notes that Robinson was the first African American to play in Major League Baseball, integrating professional sports. The passage states that many of the greatest athletes may never have had an opportunity if not for Robinson paving the way by being the first to break baseball's color barrier.
How To Write A Presentation Us. Online assignment writing service.Heather Strinden
This document provides instructions for creating an account and submitting a request for writing assistance on the HelpWriting.net website. It explains that users must first create an account by providing a password and email address. They can then complete a 10-minute order form with instructions, sources, and deadline. Writers will bid on the request and the user can choose a writer based on qualifications and reviews. The user can request revisions until satisfied and receive a refund if the content is plagiarized.
The document provides instructions for requesting and completing an assignment writing request through the HelpWriting.net website. It outlines a 5-step process: 1) Create an account with a password and email. 2) Complete a form with assignment details and optionally attach a sample. 3) Review bids from writers and select one. 4) Review the completed paper and authorize payment. 5) Request revisions to ensure satisfaction, with a refund option for plagiarized content.
Expository Story. Exposition In A Story Why Background InforHeather Strinden
The document discusses Oedipus' efforts to uncover the murderer of the previous king Laius in order to end the plague afflicting Thebes. It describes Oedipus as a man of action but also quick temper who bullies the prophet Tiresias into revealing that Oedipus himself killed King Laius. The story examines Oedipus' refusal to accept this revelation due to his earlier accusations of Tiresias as being disloyal and responsible for the kingdom's troubles.
How To Make Fun Cursive N. Online assignment writing service.Heather Strinden
The document provides instructions for creating an account and submitting a paper writing request on the HelpWriting.net website. It outlines a 5-step process: 1) Create an account with an email and password. 2) Complete a form with paper details, sources, and deadline. 3) Review bids from writers and choose one. 4) Receive the paper and approve payment if satisfied. 5) Request revisions until fully satisfied, with a refund option for plagiarized content. The purpose is to guide users through obtaining writing help services from the site.
All You Need To Know About Sociology Essay Writing SerHeather Strinden
1. The document provides instructions for writing a sociology essay through an online service called HelpWriting.net.
2. It outlines a 5-step process: register an account, submit a request with instructions and deadline, writers will bid on the request, choose a writer and provide a deposit, and review and approve the completed paper for payment.
3. The service promises original, high-quality papers and free revisions to ensure customer satisfaction. Plagiarized papers will result in a full refund.
Annotating Musical Theatre Plots On Narrative Structure And Emotional ContentHeather Strinden
This document describes an effort to annotate musical theatre plots to understand their narrative structure and emotional content. Researchers developed a vocabulary and annotation procedure to label elements in a corpus of musical theatre pieces. They aimed to gain insights into common patterns in musical theatre plots, as existing narrative analysis focused on other domains like folk tales. The researchers selected musicals to annotate and carried out the annotation process. They then analyzed the annotated corpus to identify trends in the narrative structure of musical theatre plots.
This document summarizes Joseph Novak's paper on Aristotle's Topics and informal reasoning. Novak examines Aristotle's topoi dealing with opposition and contrariety. He discusses how Aristotle analyzed arguments using a subject-predicate format and ontological principles. Novak also analyzes how contemporary arguments can employ Aristotelian topoi. The paper aims to provide insight into what Aristotle meant by a topos and how particular topoi function in ordinary argumentation.
Activity-Based Rail Freight Costing A Model For Calculating Transport Costs I...Heather Strinden
- The thesis develops an activity-based cost model called EvaRail to calculate rail freight transportation costs. The model aims to illustrate the complex production systems in the railway sector and satisfy different actors' needs for cost information.
- EvaRail models costs at the level of individual freight flows, allowing calculation of costs for larger transport systems. It can illustrate various production methods without being limited to a specific traffic type.
- The cost model takes the perspective of a train operating company, calculating business economic costs and not external costs. The model provides a basis for determining transportation prices, with costs being an important factor alongside market prices.
The answer is D. The 1994 revised code of ethics provides principles based on "moral obligations and virtues" rather than practice-specific guidelines, unlike earlier codes from 1848, 1922, and 1981.
A LITERATURE REVIEW ON PHISHING EMAIL DETECTION USING DATA MININGHeather Strinden
This document reviews literature on detecting phishing emails using data mining. It discusses how hybrid features that include both content and header information can be used to effectively classify emails as phishing or legitimate. Various techniques currently used for phishing email detection are examined, including network-level protections, authentication, client-side tools, user education, and server-side filters. Feature selection is important, as phishing emails often resemble legitimate emails, making detection complex. The review finds that server-side filters using machine learning classifiers on selected email features show promise as a solution.
5 Important Deep Learning Research Papers You Must Read In 2020Heather Strinden
The document summarizes 5 important deep learning research papers from 2020. It discusses a paper on using deep reinforcement learning to achieve human-level control. It also mentions papers on deep learning applications for clothing image analysis, semi-supervised learning, graph representation learning with PyTorch, and high-fidelity image generation with fewer labels.
Arabic Writing Challenges Faced By Students In Collegiate 1 Of AlHeather Strinden
This document summarizes a study that aimed to identify challenges faced by students in writing Arabic compositions at Al Jamea Tus Saifiyah campus in Nairobi, Kenya. The study surveyed 100 students to understand their difficulties in adhering to Arabic grammar rules and developing cohesive writing. The results found that most students struggled with syntactic knowledge and producing well-structured essays. The document recommends that teachers receive workshops on effective writing instruction and integrate various teaching methods proven to improve student writing abilities and address their challenges.
An Inquiry-Based Case Study For Conservation BiologyHeather Strinden
The document presents a case study for using Stroubles Creek, Virginia to teach students about the Clean Water Act and conservation biology. It provides background on the Act, describes how the creek was deemed impaired, and outlines the total maximum daily load study conducted. It then provides the case materials and teaching notes to structure classroom activities around discussing key concepts like the scientific and normative aspects of the Act, and recognizing uncertainties in its implementation. The goal is for students to actively engage with the real-world example to further their understanding of these topics.
Environmental auditing originated in the 1970s in the US and was later adopted in the UK and other countries. It has become more proactive as organizations recognize potential benefits like market advantages, efficiency gains, and financial savings. Environmental auditing involves systematically collecting and analyzing information to assess performance against requirements, evaluate compliance with laws and policies, and measure performance against management system standards. It is an important tool that helps companies and public organizations improve their environmental management and performance over time.
The simplified electron and muon model, Oscillating Spacetime: The Foundation...RitikBhardwaj56
Discover the Simplified Electron and Muon Model: A New Wave-Based Approach to Understanding Particles delves into a groundbreaking theory that presents electrons and muons as rotating soliton waves within oscillating spacetime. Geared towards students, researchers, and science buffs, this book breaks down complex ideas into simple explanations. It covers topics such as electron waves, temporal dynamics, and the implications of this model on particle physics. With clear illustrations and easy-to-follow explanations, readers will gain a new outlook on the universe's fundamental nature.
How to Make a Field Mandatory in Odoo 17Celine George
In Odoo, making a field required can be done through both Python code and XML views. When you set the required attribute to True in Python code, it makes the field required across all views where it's used. Conversely, when you set the required attribute in XML views, it makes the field required only in the context of that particular view.
How to Build a Module in Odoo 17 Using the Scaffold MethodCeline George
Odoo provides an option for creating a module by using a single line command. By using this command the user can make a whole structure of a module. It is very easy for a beginner to make a module. There is no need to make each file manually. This slide will show how to create a module using the scaffold method.
This presentation was provided by Steph Pollock of The American Psychological Association’s Journals Program, and Damita Snow, of The American Society of Civil Engineers (ASCE), for the initial session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session One: 'Setting Expectations: a DEIA Primer,' was held June 6, 2024.
How to Setup Warehouse & Location in Odoo 17 InventoryCeline George
In this slide, we'll explore how to set up warehouses and locations in Odoo 17 Inventory. This will help us manage our stock effectively, track inventory levels, and streamline warehouse operations.
Strategies for Effective Upskilling is a presentation by Chinwendu Peace in a Your Skill Boost Masterclass organisation by the Excellence Foundation for South Sudan on 08th and 09th June 2024 from 1 PM to 3 PM on each day.
This presentation includes basic of PCOS their pathology and treatment and also Ayurveda correlation of PCOS and Ayurvedic line of treatment mentioned in classics.
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
Main Java[All of the Base Concepts}.docxadhitya5119
This is part 1 of my Java Learning Journey. This Contains Custom methods, classes, constructors, packages, multithreading , try- catch block, finally block and more.
How to Add Chatter in the odoo 17 ERP ModuleCeline George
In Odoo, the chatter is like a chat tool that helps you work together on records. You can leave notes and track things, making it easier to talk with your team and partners. Inside chatter, all communication history, activity, and changes will be displayed.
A STUDY ON COST OPTIMIZATION IN THE SHIP MANAGEMENT
1. The Second Global Conference on Innovation in Marine Technology and the Future of Maritime Transportation,
24-25 October 2016, Bodrum, Muğla, TURKIYE
A STUDY ON COST OPTIMIZATION IN THE SHIP MANAGEMENT
Asst. Prof. Dr. Ergün DEMİREL, Asst. Prof. Dr. Dinçer BAYER
Piri Reis University, Istanbul/Turkey, edemirel@pirireis.edu.tr
Piri Reis University, Istanbul/Turkey, dbayer@pirireis.edu.tr
ABSTRACT
Shipping is a risky business by its very nature that runs within a complex and ever changing market set up
having variables in both income and expenditure. Ship management is a highly competitive and a cost-
conscious arena of which one of the most prominent objectives is the cost optimization. The aim of this study is
to conduct a research on the cost optimization in the ship management, to define the dominant factors that
seriously affect the cost and to propose solutions which reduce the cost. Primary intention is to make an
investigation on the factors which affects the costs in the ship management and to evaluate the effects of these
factors on the costs. Then the fuzzy logic method is applied to find dominant factor(s) which are controllable
and could seriously reduce the cost. The findings on the dominant factors are used to produce proposals to
optimize the ship management costs for the shipping companies. This study not only helps to understand the
dominant cost factors in the industry, but also provides essential data for the organizational changes which
ensure the cost reduction in the ship management.
Key Words- Ship Management; Cost Optimization; Shipping; Procurement and Maintenance; Procurement and
Repair.
1. INTRODUCTION
Shipping business runs within a complex and ever changing market which leads to variables in both
income and expenditure. Accordingly, being an international business, the shipping activity should
follow both national and international law and regulations. The shipping operates under the supervision
of not only national authorities but also global actors such as classification societies, finance providers,
marine insurance companies, shipping related non-governmental organizations which regulate
commercial management.
Shipping is a high level risky business which is very sensitive to many risks which may jeopardize
survival of the shipping company. Sea transportation is full of hazards which may cause serious
damages on human lives and the ship to a degree of even total loss. Normally ships are owned by
credits and a financial risk is always possible. Shipping is also very sensitive for changes of the national
and international policy. Those alterations and risks require all ship management companies to handle
a continuous risk assessment and management process.
Additionally, shipping is a complex business – with a substantial exposure to financial, commercial,
political and physical risks – that requires skilled management. Ship management – again
unsurprisingly in a cost-conscious business such as ship ownership – is a highly competitive business
sector, especially in respect of management fee levels (Drewry, 2006).
Ship owners are always looking for securing their revenue to survive in a challenging business. To
control revenue flow, they need reduce the cost and increase the income. Increasing the income is not
possible whereas reducing the cost is much more available in general. Reduction of the capital,
operation and voyage costs is generally not applied due to the economic considerations. For that
reason, to secure cost savings, the ship owners are looking for instruments to control expenses of
additional crew travels, stores, spares, repairs, shipyard, port agency bills and extra insurance fees.
2. The Second Global Conference on Innovation in Marine Technology and the Future of Maritime Transportation,
24-25 October 2016, Bodrum, Muğla, TURKIYE
Technical management is at the core of successful ship operation. A ship’s ability to earn revenue will
be hampered if it is unable to operate optimally. This introduces the need, among others, to attain the
appropriate standards for crewing, repairs and maintenance, procurement and inventory systems and
management itself (Drewry, 2006).
2. RESEARCH METHOD
The aim of this study is to conduct a research on the cost optimization in the ship management, to
define the dominant factors which seriously affect the cost and to propose solutions which reduce the
cost. To reach the aim, data is collected and processed by using literature review techniques. Problem
of the study is defined such as “to reduce the cost for shipping companies. “Accordingly, research is
conducted in three phases. In the first phase, it is intended to make an investigation on the factors
which affects the costs in the ship management and evaluate the effects of these factors on the cost.
Then the fuzzy logic method is applied to find dominant factor(s) which are controllable and seriously
reduce the cost. In the last phase, the findings on the dominant factors are used to produce proposals
to optimize the ship management costs for the shipping companies.
Figure 1: The research method applied
This study not only will help to understand the dominant cost factors in the industry but also will
provide essential data for the organizational changes which ensure the cost reduction in the ship
management.
3. ANALYSIS OF REVENUE AND COSTS
3.1. Main Elements of Shipping Management
Main elements of the ship management are introduced in Figure 2. The commercial ship management
is “getting the income in’’ and the technical ship management is ‘‘keeping the hardware/seagoing
operation going’’. Administration is a set of activities in support of commercial and technical
managements.
Figure 2: The Main Elements of Ship Management (Source: Drewry, 2006)
1 LITERATURE
RESEARCH
2
APPLICATION
OF FUZZY
LOGIC
3 DISCUSSION
ON FINDINGS
4 PROPOSALS &
CONCLUSION
Commercial management Technical management Administration
Securing vessel income
Organising and managing
various operating and
voyage
cost streams
Crew management
(including recruitment,
training and retention)
Organising and managing ship
operations/functions
Supervision of R&M regime
Supervision of procurement
Maintaining vessel in class and
in seaworthy condition
Preserve owner's asset
Policy / planning /
strategy
Financial, legal,
accounting
Taxation
Office overheads
Advertising /
marketing
Training programmes
Relationships with agents, brokers, other third parties
3. The Second Global Conference on Innovation in Marine Technology and the Future of Maritime Transportation,
24-25 October 2016, Bodrum, Muğla, TURKIYE
According to Drewry (Drewry, 2006), the inevitable principal in commerce is “securing the revenue
stream”. In shipping there are two factors to provide earning income; freight rates secured for the
carriage of cargo and hire earned from chartering out the ship. In some extraordinary cases, the revenue
may be secured from selling ships.
Whoever has responsibility for commercial management, the success or otherwise of the venture will
hinge on two key factors; (i) an ability to ‘read the market’ and (ii) an element of luck. The latter may
sound disconcerting to those not closely involved with shipping markets but the truth is that shipping
markets are some way from being transparent. Hence, interpretations have to be made based on
incomplete or imperfect information. This creates a mix of speculation and sentiment to go with the
underlying ‘realities’. Sentiment is not something suited to ‘mathematical models’ (Drewry, 2006). As
it has been mentioned before, mostly the ship managers are lack the ability of reading the market and
that makes them play their games on luck in which success is not always possible. So it is clear that
they should work on “cost reduction” rather than” gaining or increasing income” which is very variable
and hard to forecast.
From an economic standpoint, the entrepreneur will try to maximize his profits and therefore expand
his output, so long as the increase in his total costs is less than the increase in his total revenue. He will
therefore continue to expand to the point where his marginal additional cost is equal to his marginal
additional revenue (Archer, 2008).
The following issues are key issues in ship management;
- Commercial Management:
- Freight development-negotiating and securing charters
- Cargo booking and ship scheduling
- Technical Management (Cost side based on the Voyage Estimation)
- Crew cost
- Bunkers & lubricators consumption and cost
- Hull and engine maintenance costs
- Insurance costs
- Capital costs
- Administration costs (Distribution of overhead for each voyage)
- Voyage costs for ports, agency, pilotage, cargo handling, canal transits, etc.)
- Administration;
- Financial control and accounting
3.2. Cost Factors in Ship Management
The share of the cost for each type of charter is shown in the Figure 3. Operating cost which is main
part of spending for all charter modes is under the ship owner responsibility except bareboat chartering.
4. The Second Global Conference on Innovation in Marine Technology and the Future of Maritime Transportation,
24-25 October 2016, Bodrum, Muğla, TURKIYE
Charter Type-Cost Relations
The most crucial factor in management terms between the two charter modes
(voyages and time) concerns their variation in cost responsibilities between the ship
owner and the charterer.
Deposit
Repayment of loan principal
Interest
Manning
Insurance
Repairs and maintenance
Stores, spares and supplies
Administration and management
Bunkers
Port Disbursement ˖
Canal and seaway transit coasts
Bareboat Time Voyage
Cost:
Capital
Operating
Voyage
Cost for shipowner’s account Cost for charterer’s account
˖ FIO basis- all costs on charterer’s account
Liner terms-all costs on shipowner’s account
Gross load/discharge free-loading costs on owner’s account, discharge costs on charterer’s account
Figure 3: Charter Type Cost Relations (Source: Drewry, 2006)
It is not possible to negotiate for capital cost except initial stage which is related the financial markets’
fluctuation. Most part of the voyage costs (port disbursements, canal and seaway transit costs) are
dependant to tariffs and not negotiable. Bunker prices follows the fixture of the market and provides a
little opportunity to bargain. Some elements of operating cost (manning and insurance) are not
negotiable. But the others (Repairs and maintenance; stores, spares and supplies, administration and
management) are more flexible to negotiate for cost reduction. The quality of purchase/procurement
staff and technical staff and support of ship crew is important to make cost optimisation in these areas.
Marfin Management Company made a study on Operational Cost and Daily Overall expenses for ships
(Albertini, 2011). The following tables show these figures;
Table 1: Operational Expenses Proportion
The biggest portion is the crew cost and it is not flexible for bargain. Insurance also has a very limited
chance to negotiate for cost. Except company staff salaries, all other administration aspects (office
rent, transportation, and communication, stationary) are in the procurement and purchase. The stores
and Spare & Repair cost are almost 19% of the operational expenses.
These are all related maintenance and repair policy and finally procurement/purchasing activities. If
we separate non-flexible factors (crew cost and insurance), the remaining cost factors are directly
related to maintenance, repair and procurement/purchasing.
Crew costs 48%
Administration 18%
Stores 16%
Insurance 13%
Spare &Repairs 5%
5. The Second Global Conference on Innovation in Marine Technology and the Future of Maritime Transportation,
24-25 October 2016, Bodrum, Muğla, TURKIYE
Table 2: Proportion of Daily Overall Expenses
Financing 51%
Crew Cost 19%
Dry Docking 9%
Administration 7%
Stores 7%
Insurance 5%
Spares & Repairs 2%
As far as concerning Daily Overall expenses, except non-negotiable factors (financing, crew cost, and
insurance) all other aspects are also directly related to maintenance, repair and procurement &
purchasing.
3.2. Effectiveness of purchasing/procurement
The three areas which in the core of ship operations are important to evaluate cost optimization;
Maintenance, Repair and Procurement.
Maintenance is an activity should be based on a plan namely Planned Maintenance System (PMS).
Being a planned activity planners foreseen the cost and may prepare a budget which has a little
fluctuation in general. If company and ship masters are keen to follow application of PMS on board
there would not be an unexpected change in maintenance cost. The equipment and external manpower
for PMS is crystal clear and if company finds suitable material and organize suitable external
manpower with reasonable price there will be no surprise affecting cost seriously. The company should
make an applicable plan for maintenance, conduct it fully and establish a full control, the cost will be
reduced.
Repair requirements rise in case of malfunction of equipment which is mainly due to lack of
maintenance. Although it is not fully approved, many maritime management experts assume that the
cost of the maintenance (Cm) causes square of Cm ��2
value of repair and missing opportunities
cost. The age of the ships is a critical factor which increases the probability of incidents.
Procurement is made for supplying for all types of expenditure for ship and company. The procurement
policy and the stores and supplies budget play a significant role in the expenses of the company. The
stores and supplies budget and account has the potential to be one or the more irksome aspects of ship
management. This is to do with the large number of transactions that it is capable of generating but,
allied to this; many of these purchases – on an individual basis – may be of relatively little cost. The
other key consideration is the manner in which these are purchased (i.e. the process adopted by the
managers, including the degree of autonomy delegated to the vessel) and the locations around the
world where deliveries to the vessel are affected. Clearly, it is vital that a cost-effective store, supplies
and inventory policy is established and operated. The ‘art’ is to see that this process is not ‘over
managed’.
That is, it is vital that an owner or manager does not fall into the trap of ‘knowing the price of
everything, but the value of nothing’. This is not to suggest that price is unimportant – but buyers have
to be aware of the potential of substitution of inferior products, reliability of delivery, etc. It is unlikely
that a 5% saving on a stores and supplies order will seem to be a bargain if late delivery means the
vessel is delayed for a day – or the vessel has to sail without its order (Drewry, 2006).
The purchase and procurement is a complex subject and requires a systematic approach to fulfil the
requirements. The fundamental of procurement is related to the following issues;
6. The Second Global Conference on Innovation in Marine Technology and the Future of Maritime Transportation,
24-25 October 2016, Bodrum, Muğla, TURKIYE
- The purchase staff should be well experienced and qualified
- The company staff and ship crew should be capable of providing exact information for purchase
staff
- There should be a reliable system to monitor supply follow ensuring that the right thing is
arrived to right place in right time as well as correct invoice and payment
- Geography plays a critical role on the price
- The actual product mix is highly diverse
- Purchase staff deals with a wide range of suppliers.
- Purchase requires a selection to meet both quality and price
- Supplier reliability is important for an uninterrupted supply flow
Traditionally, the picture of the ship stores and supplies market held by most has been one focused
solely on the negotiations and transactions between the ship owner or manager (as the marine
purchaser) and some category of ship supplier. Hence, purchasing has tended to become an ‘exclusive’
niche within the shipping company set up. However, this picture is changing. Purchasing becomes
‘less isolated’ as it moves within the wider considerations of procurement. Purchasing is self-
explanatory. Procurement, naturally, is about acquiring items needed by the vessel but it brings other
‘management’ and ‘analytical’ aspects beyond the pure purchasing process into the equation.
4. DISCUSSION
A study made by Fraunhofer CML and GL (Germanischer Lloyd) (2013), covering 100 shipping
company on the “best management of ship management showed that the followings are assumed as
the core tasks of ship managers by shipping companies;
- Technical management
- Quality and safety management
- Crewing
- Financial management
- Procurement
The financial management is an essential to survive and it is mainly dependent to the initial credit
agreements. Technical management including Crewing and Quality & Safety management is an
inevitable function to continue commercial operations and the cost of all this functions are
approximately fix exempt some minor changes. The only area which manager can make arrangements
related to the cost is procurement
In the Fraunhofer study it is also defined that “procurement of spares, supplies and services” is another
elementary task of every ship manager to keep the vessel ready to sail. He does that on the account of
the owner. Although low operational costs are a key differentiator for ship managers, there is no
immediate effect of good purchasing in their pockets. This might be a reason why this function often
gets less attention compared to Technical Management. However, the budgets {assigned for
procurement} handled are still significant with a steady trend to rise. Tighter regulations and new
international maritime conventions on safety, manning and the environment will continue to exert
pressure on budgets post-2013.
With the emerging changes in world patterns of manufacturing—with much of it now being relocated
to so-called low cost countries, of which China is perhaps the premier example—the issue of trading
also becoming even more important. To develop trading capabilities to be able to make long or short
positions when it comes to “procurement and supply” is becoming increasingly vital (Lorange, 2005).
7. The Second Global Conference on Innovation in Marine Technology and the Future of Maritime Transportation,
24-25 October 2016, Bodrum, Muğla, TURKIYE
All these studies prove that means procurement will be rather important in the future and should be
carefully investigated for the survivability of the companies.
In a study on cost optimization “Services and Operations” of the shipping companies is analysed at a
second level as shown in the Figure 4. One of the core processes of the product (Door to Door and
Port to Port) is namely “Sea Voyage and Berthing”. The ship management is also analysed at a second
level in the Figure 5. This is a very important entity for the availability of the fleet vessels and hence
for the schedule keeping of a line (Lyridis et al, 2005).
Figure 4: The Services and Operations of the Shipping Company
Figure 5: Ship Management Operations
If we examine the impact of successful commercial strategy and how it can deliver lower costs through
effective procurement, primarily the managers should;
Understand the role strategic procurement plays in an effective commercial operation
Find the balance between cost, quality and innovation in procurement
Examine total costs and the opportunity costs in relation to pricing strategies
Apply project management techniques to procurement and commercial projects
Evaluate and mitigate the risks in commercial strategy
Build your understanding of the tendering and bid processes from both buyers and sellers
perspective
Realise how an effective negotiation strategy can achieve commercial success
Discover the benefits of effective contract management
Technical
Management
Purchasing
Crewing
Insurance and
Claims
Port arrangements
Sea Voyage &
Berthing
Bill of lading
handling
Bunkers purchasing
Service performance
follow-up
8. The Second Global Conference on Innovation in Marine Technology and the Future of Maritime Transportation,
24-25 October 2016, Bodrum, Muğla, TURKIYE
Actually main parts of procurement is related to the maintenance and repair cost. To make a full
coverage study the regression analysis should be made between procurement and maintenance and
repair costs. But the maintenance and repair costs are variables pending upon the type, ages, operation
hours of the ship, maintenance policy of the company, quality of repair etc. So it is very difficult to
make a regression analysis between these factors. Such a regression analysis may be conducted for a
specific company but not for general survey. Another issue preventing such an analysis is the non-
transparent structure of the shipping business and this hampers the collection of essential data for
analysis.
4.1. Fuzzy Logic Application
This study is supported with a Fuzzy Logic Application supported with an expert team. Fuzzy logic
provides a method for representing analog processes in a digital framework. Processes that are
implemented through fuzzy logic are often not easily separated into discrete segments and may be
difficult to model with conventional mathematical or rule-based paradigms that require hard
boundaries or decisions, i.e., binary logic where elements are a member of a given set or they are not.
Consequently, fuzzy logic is valuable where the boundaries between sets of values are not sharply
defined or there is partial occurrence of an event (Klein, 2004).
A group of 6 doctorate students (1 ship master and 1 chief engineer working in the shipping companies,
1 ship master and 1 chief engineer working as maritime lecturer, in maritime transportation engineering
programme and a civil engineer who wants to work offshore structures) made a research study under
the supervision of a lecturer holding PhD on the maritime management as a part of their fleet
management course. Detailed information has been delivered the group to understand the main
elements of the cost in the ship management including a discussion period. They have investigated the
main activities affecting the cost reduction in the ship management. Considering main areas affecting
the cost in the ship management, they have decided that these factors are the procurement, maintenance
and repair. The followings are defined as the main areas that will be evaluated:
M= Maintenance
P= Procurement
R= Repair
The group has also evaluated factors which directly affect the success of the procurement, maintenance
and repair. The followings are defined as the factors (criteria) which will be weighted:
A: The experienced and qualified company staff is important to reduce the cost.
B: The well-organized outsourcing is important to reduce the cost
C: The geographic factor is important to reduce the cost.
D: The attitude of the ship crew is important to reduce the cost.
The group has studied on the weight of the each factor for each areas which are important in the cost
reduction. The scale used is between 1 and 5 and 5 is the most important weightiness. The weights of
each criterion for the areas which will be evaluated are defined in the Table 3.
Table 3: Weight of Importance of each factor
Factor A Factor B Factor C Factor D Sum
Importance Level 4 3 2 2 11
Importance Weight 36% 27% 18% 18% 100.0%
9. The Second Global Conference on Innovation in Marine Technology and the Future of Maritime Transportation,
24-25 October 2016, Bodrum, Muğla, TURKIYE
The importance of the each factors for each area (Choice) to be investigated is discussed in the group
and group decision is reflected to Table 4. The scale used is between 0 and 1. The normalized score is
found used the formula below.
Normalized score= ½ (1-Sum/Total Sum)
Table 4: Normalized Scores based on Range
Sum for choices is M=29.5%, P=32% and R: 34.5%.
Having the normalized weight of each factor, now we can multiply the converted score of Table 4 with
the normalized weight and get the new weighted score as show in Table 5.
Table 5: Weighted Scores
Criteria | Alternatives Weight Choice M
(Maintenance)
Choice P
(Procurement)
Choice R (Repair)
Factor A 36% 0.8 0.9 0.8
Factor B 27% 0.9 0.6 0.9
Factor C 18% 0.3 0.9 0.5
Factor D 18% 0.4 0.4 0.3
Sum (Initial) 100.0% 0.180 0.722 0.808
Criteria | Alternatives Weight Choice M
(Maintenance)
Choice P
(Procurement)
Choice R (Repair)
Factor A 36% 0.29 0.32 0.29
Factor B 27% 0.24 0.16 0.24
Factor C 18% 0.05 0.16 0.09
Factor D 18% 0.07 0.07 0.05
Sum 100.0% 0.65 0.71 0.67
NORMALIZED SCORE 32% 35% 33%
Comparing the normalized score of Table 4 and Table 5 we can observed some shift on the choice. In
Table 5, choice R (Repair) is preferable than M (Maintenance) and P (Procurement). However, after
we include the weight of importance of each factor, we conclude that choice P (Procurement) is the
most preferable alternative.
4.2. Organizational Issues
As we progress through the early years of the twenty-first century, the size and the scope of the
shipping companies continue to change. The change is based on the company business plan formulated
by the directors. Archer (2008) draws attention the following factors which is going to be very
important issues in the near future;
Criteria | Alternatives Choice M (Maintenance) Choice P (Procurement) Choice R (Repair)
Factor A (Staff) 0.8 0.9 0.8
Factor B (Outsourcing) 0.9 0.6 0.9
Factor C (Geography) 0.3 0.9 0.5
Factor D Ship Crew) 0.4 0.4 0.3
Sum 2.4 2.8 2.5
Normalized Score 29.5% 32% 34.5%
10. The Second Global Conference on Innovation in Marine Technology and the Future of Maritime Transportation,
24-25 October 2016, Bodrum, Muğla, TURKIYE
(a) The IMO codes introduced in the past decade include the ISM, STCW and ISPS codes
which influence the company structure primarily in the marine sectors of the business in particular, the
chain of command between the ship and shore with emphasis on ship management and security.
(b) A further factor is the impact of information technology which continues to become more
sophisticated and quickens the pace of the decision-making process. It extends all parts of the shipping
company organization and in many companies has resulted in layers of management structure -
especially in the middle management range - being eliminated. The application of information
technology has shortened the decision management procedures and resulted in quicker decisions
thereby making the company more competitive.
(c) At the same time the headquarters structure tends to be much smaller with authority
devolved to encourage more accountability of personnel at all management levels. The profit centre
concept has been developed through strong budgeting management techniques. The devolution of
executive authority has involved cross border structures and in so doing yielded tax benefits and lower
wage scales. The development of computerized technology has greatly facilitated this devolution and
change.
(d) The development of third party ship management outsourcing is a growth section
especially in the area of crew, insurance, ship survey and bunker management.
If we make evaluation on the above mentioned facts related to the procurement, the following findings
may be listed;
(a) Improvement in the maritime regulations and respective strict applications will naturally
increase the cost. So, more measures should be taken to optimize the cost.
(b) A significant change in the organization of the companies is expected. In particular more
importance should be devoted to the branches which play crucial role to reduce cost.
(c)The close connection and information between company and ships will be rather important.
This will provide better control of maintenance and repair activities and cost. The close relations of
the company and the ships will also improve the decision making processes.
(d) Application of the third party management is expected to increase. This will require
establishment of a new branch which controls the operations of the third parties in particular cost.
It is not possible to say that all shipping companies are ready to apply or have intention to take measures
on the above mentioned facts. But they will take steps on the requirements mentioned e above to
survive.
Ship management companies fall into two main categories, one being a ship-owning company that
manages its own ships and offers the same services to the other ship owners. The other types are
companies that have no ships of their own and solely provide ship management services to the ship-
owners: Whichever type it is, the function of shipping management is the same and it falls under five
main headings (ICS, 2006);
- Crewing
- Technical
- Storage
- Insurance
- Operations
11. The Second Global Conference on Innovation in Marine Technology and the Future of Maritime Transportation,
24-25 October 2016, Bodrum, Muğla, TURKIYE
The Germanischer Lloyd and Fraunhofer CML (2014) conducted a large scale study involving 100
ship management companies across the globe to find what they are doing to improve their operation
and what they consider as best practices in the industry. The companies have explained that their
biggest challenges of ship management in mid-term future could be stated in the following five areas;
Crewing (88%), Technical Management (62%), Financial Management (%50), Quality and Safety
(%27) and procurement (12%).
The Administrative Process Theory of Henri Fayol is based on economic efficiency and rationality.
Although Fayol’s theory does not cover only the organization issues but also other aspects of the
management, the organization (structure) is the key element to investigate management aspects of a
company (Kocel, 2007). Accordingly, studies on the shipping companies’ should be included in their
organization as well.
A study covering 17 Turkish shipping companies showed that most of the departments are missing in
their organization. The important findings are resumed in Table 1 (Demirel, 2015). The average
number of the staff varies between 10 and 20 and some posts are twin mandate. There is not a
department responsible for Procurement/Purchasing. Mostly one person is deployed as purchase staff
and, procurement and purchase decision is made by upper level management led by technical
management staff (Table 6).
Table 6: Existence of the Management Branch/Departments of the 17 companies
Commercial Department YES NO
Existence of Commercial Department 5 4
Chartering Capability 9 8
FFA Capability 2 15
Outsourced 8 9
Technical Management YES NO
Existence of Technical Management Department 15 2
Operations Branch 16 1
R/M Branch 14 3
New Ship Building 3 14
Crewing 15 2
Administration YES NO
Legal Branch 2 15
Finance Branch 2 15
Budgeting Branch 3 14
Accounting 17 0
Public Relations 3 12
In many companies procurement is conducted by deployment of technical staff as twin mandate such
as procurement which seriously creates negative impact in procurement with may cause many
problems in the operation of the ships and high costs. It is not an effective way of deployment for
critical duties. If possible the unification of some departments is considered as more feasible to solve
this problem.
The impacts of the each management factors on business functions are shown in the Figure 6 (Drewry,
2006). The Sales and Purchase(S/P) is an essential and interlinked function of the company to apply a
strategic plan for surviving in volatile maritime business. Stopford (2008) states that “When an owner
12. The Second Global Conference on Innovation in Marine Technology and the Future of Maritime Transportation,
24-25 October 2016, Bodrum, Muğla, TURKIYE
has finished with a ship, he sells it. Another shipping company buys it at a price at which it believes it
can make a profit”.
Maclachlan (2004) assumes finance, including budgeting, arranging loans and mortgages, sale and
purchase of new vessels as other shipping company functions. A department named S/P in coordination
with Finance Department is required. Lorange (2009) states that it is becoming more and more
important to have a purchase option that might to be executed at the end of a charter- assuming that
owner is willing to grant them. The companies in growing trend needs to establish such departments
soon. Actually S/P is a part of the procurement activities and requires additional competencies as well
as main qualification needs for procurement staff such as contract management, feasibility analysis,
legal issues etc.
Figure 6: The impacts of the each management factors on business functions.
The lack of sufficient finance may hamper all purchasing activities. The success of the purchasing is
closely related to the finance, budgeting and accounting. The close relationship should be established
between these departments and Purchasing department for better planning and conducting acquisition
activities.
As a nature of the maritime business, shipping companies operates worldwide. This situation also
requires planning and conducting acquisition and procurement activities in the global scale. So, the
procurement activities in the shipping sector should not be considered in the local supply chain but in
the international supply network. Detailed information on global markets will play a critical role for
decision making process.
5. CONCLUSION
The nature of the maritime business is a volatile and generally not a transparent. The success of a
company is dependent upon correct decisions to provide smooth operation of the organization and also
the “luck” factor. As a result of this study it is understood that income /profit of a shipping company
is variable in the shipping business which generally operates in a “diseconomies of scale” system. That
makes the companies to be very keen on the cost reduction.
It is evident that all institutions should adopt new business management techniques and practices to
survive in a challenging economic system. As a result of this study it is understood that “procurement”
plays a key role to reduce or optimize the cost for shipping companies. To achieve that (effective
procurement job), companies should adopt the contemporary business and management practices
taking into account the real requirements of today.
Management and Administration Overview
13. The Second Global Conference on Innovation in Marine Technology and the Future of Maritime Transportation,
24-25 October 2016, Bodrum, Muğla, TURKIYE
The followings are suggested for the companies to improve their procurement systems;
a. A strong procurement department manned with competent staff is required.
b. In many companies procurement is conducted by deployment of technical personnel as twin
mandate which seriously creates negative impact in procurement with may cause many problems in
the operation of the ships and high costs. This is not an effective way of deployment for such critical
duties. The procurement department should be established and equipped with competent staff and
tools.
c. The success of the procurement relies on the following factors;
The accurate technical and financial information to fully meet the requirements,
Close information exchange between procurement and respective technical staff
including crew on board,
Competent procurement staff qualified in contract management.
d. The Ship Sales and Purchase(S/P) is an essential function of the company to apply a strategic
plan for surviving in volatile maritime business. A new department named S/P in coordination with
finance department is required.
e. Finance, Budgeting and Accounting are closely related to Purchasing. The close relationship
should be established between these departments and Purchasing for better planning and conducting
acquisition activities.
f. As a nature of the maritime business, shipping companies operate worldwide. This situation
also requires global acquisition and procurement activities. So, the procurement activities in the
shipping sector should not be considered in the local supply chain but in the international supply
network.
Finally, the success of procurement plays a critical role for survival of shipping business. All
companies operating in this sector should carefully review and revise their procurement operations
taking required actions in particular in the organization and staffing.
REFERENCES
[1] Albertini A., 2011, “Managing the Financial Crises”, A ship Owners Perspective, Marfin Management
[2] Demirel, E., 2015, “A study on the organization and management systems of Turkish shipping
companies”, International Journal of Human Sciences, 12 (2), 51-74. doi: 10.14687/ijhs.v12i2.3165
[3] Drewry, 2006, “Ship Management”, Drewry Shipping Consultants Ltd., London p. 1, 11, 54
[4] Fraunhofer CML and GL, (2014), “Best Practice Ship Management Study 2013”, GL Maritime Software
Product, Hamburg OE845-2013-04-01 p. 2, 6
[5] ICS (Institute of Chartered Shipbrokers), 2006, “Introduction to Shipping”, Whitherby Co Ltd., London p.
65
[6] Kapetanis G. N., Psaraftis H.N., Fyrvik T., Ventikos N., Anaxagorou P., Uthaug E., Lyridis D.V., 2005,
“Optimizing shipping company operations using business process modelling”, Maritime Policy &
Management, ISSN 0308-8839, Nº. 4, 2005, pages 403-420 DOI: 10.1080/03088830500300636
14. The Second Global Conference on Innovation in Marine Technology and the Future of Maritime Transportation,
24-25 October 2016, Bodrum, Muğla, TURKIYE
[7] Klein L. A., 2004, Sensor and Data Fusion: A Tool for Information Assessment and Decision Making,
eISBN: 9780819481115| Print ISBN13: 9780819454355| Print ISBN10: 0819454354 doi:10.1117/3.563340
[8] Kocel T., 2007, “Business Management (Isletme Yoneticiligi)”, Arian Basim Yayin Ltd, Istanbul ISBN
975-6145-44-7 p. 153
[9] Lorange F., 2005, “Shipping Company Strategies”, Global Management under Turbulent Conditions
Elsevier ISBN 0-08-044611-6
[10] Lorange P., 2009, “Shipping Strategy-Innovation for Success”, University Press, Cambridge
ISBN 978-0-521-76149-9
[11] Maclachan M., 2004, “The Shipmaster’s Busıness Companıon”, O’Sullivan Printing Corporation,
Southall, Middlesex U.K. ISBN 1 870077 45 8
[12] Stopford M., 2009, “Maritime Economics”, 3rd
Edition, Routledge, New York ISBN 0-203-89174-0 p. 31,
32, 77