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SHIPOWNER AND OPERATOR OVERVIEW

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Shipping
company
organisati
on

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SUBJECT CONCERN

 Operations department:
• Maximise the economic and safe deployment of the ships (planning, scheduling, etc.)
• Coordination with other departments, ships, charterers, ports, agents, etc.

 Technical Department:
• To keep the ships in a seaworthy conditions.
• Ships’ maintenance and repairs
• New building projects, etc.

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Shipping segments
 Shipping segments by geography of operation:
• Deep-sea shipping
• Short-sea shipping
• Coastal shipping
• Inland waterways.
 Shipping segments by operation
• Liner operations: Liners operate according to a published itinerary and
schedule similar to a bus line.
• Tramp operations: Tramp ships follow the available cargoes similar to a
removal van.
• Industrial operations: Usually own the cargoes and control the vessels
used. They operate within a wider company business framework, thus differ
from other two segments.

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Ship/fleet planning

Ship / fleet planning problems are relatively complex as ships operate under a variety of operational conditions such as:

· A ship operates mostly in international trades which mean that they are crossing multiple national jurisdictions, with
their own relevant issues.

· A ship represents a large capital investment that translates into high daily costs of capital, fuel costs, port dues, etc.
Thus, it cannot remain idle and must be busy earning on a continuous basis.

· Ships have higher uncertainty in their operations due to their higher dependence on weather conditions and their
operation in multiple jurisdictions and various ports.

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Business planning

• Market and trade selection,

• Fleet size and fleet mix decisions (type, size, and number of vessels),
• Port/terminal location, size, and design.
• Fleet deployment (assignment of specific vessels to various trade routes),
• Ship routing and scheduling,
• Port and berth scheduling,
• Cargo operation scheduling,
• Voyage planning
• Ship speed selection and adjustments
• Ship loading operations
• Ship environmental/weather routing

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Other important operational aspects
 Regulatory compliance:
• Fleet must comply with regulatory requirements.
 Maintenance management:
• Scheduled maintenance in a port or a shipyard
• Surveys by classification society in a shipyard.
• Unplanned maintenance
 Fuel procurement:
• A significant cost of the ship operation
• Variety of activities takes place for procurement of fuel with correct quality,
quantity and price levels.

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COSTS

Fixed costs— Return on capital, amortisation, debt servicing.

Daily operating costs — Crew expenses, victualling, stores, lubricants, insurance, repair/ maintenance, dry
docking, communication.

Voyage related costs — bunkers, port costs (including tugs, pilots, agency fees), canal dues,
Ioading/discharging costs.

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