Ship Manager

There is much more to ship owning than simply buying a ship, finding the right cargoes and carrying them. In this course it will be seen how many different activities are involved in managing and operating ships and that the tasks require distinctly separate areas of skills; so separate that several experienced individuals have to be involved. The first decision that a shipowner has to make, therefore, is who to use for this work.  The first thought would be to hire the necessary personnel and create all the requisite departments in one’s own company.  This ‘in-house’ approach has much to commend it.  The obvious one is close control by the owner of all aspects of the management activity.  The amount of money tied up in the owning of a ship makes the idea of having day-to-day contact with all those involved in its care such an advantage that the decision seems obvious. Obvious that is until the question of cost is considered.  Skilled managers quite rightly command high salaries and wish to be employed in positions which are sufficiently challenging to be satisfying.  If, therefore, the owner has very few ships, the costs to be allocated against each ship to cover the management function becomes uneconomical.  Furthermore, with only a few ships to manage, the senior personnel will not have enough work to fill a satisfying day so they will become bored and seek more challenging employment elsewhere. This is not a problem for the owners of large fleets.  The management costs are spread over more units and thus will be at an acceptable level.  Moreover, the higher income will permit the engagement of top-class staff with adequate support staff, all of whom will have plenty of work to fill their days. This is not a problem for the owners of large fleets.  The management costs are spread over more units and thus will be at an acceptable level.  Moreover, the higher income will permit the engagement of top-class staff with adequate support staff, all of whom will have plenty of work to fill their days.