Stakeholders

1.

School of Business and Law
Department of Maritime Studies
text here and Shipping Markets
ATSS101 Introduction Your
to Shipping
Stakeholders
Lecturer: Capt. Eugen-Henning Adami
Email: [email protected]

2.

Agenda
The Ship-Owner
The Ship- Manager
The Broker
The Agency
The Forwarder
The United Nations and the IMO
The Shipping Stakeholder
Regulators
Declaring parties
Enforcers
Interest groups
2

3.

The Shipowner
The term “Shipowner” is used in shipping with different meanings
1. A ship-owner is the person or company that holds the legal
ownership of the vessel. (Legal – ultimate beneficial)
2. A ship-owner is the person or company that equips, provides and
exploits the vessel. (Commercial)
3. A Disponent Owner is the person or company that (entrust) (is
entrusted) as third party by time charter, bareboat charter or pool
management to operate the vessel/voyage.
4. A Managing Owner is the company entrusted as third party by the
legal shipowner to operate the vessel as pool manager in a
commercial pool with vessels from other shipowners.
3

4.

The Shipowner
The Shipowner - Definition
An ultimate beneficial shipowner is the legal owner of a
merchant vessel!
In the commercial sense, the shipowner is who equips, provides
and exploits the vessel.
Shipowners employ typically a licensed captains and crew rather
than take charge of the vessel in person. In older days however
the shipowner was also the master and was running all income
and expenditures by himself.
Today a shipowner is organized through a company. If a shipowner
runs more than 1 ship via companies we call his main company a
SHIPING COMPANY.
The shipowner usually subcontracts the actual management to a
3rd party shipmanager, though this can also be done in-house.
4

5.

The Shipowner
The Shipowner
The shipowner is the person/company who equips a ship (also
fits out a ship), provides the vessel with the necessary provisions
and crew and runs/operates the ship.
Shipowners are distinguished by the type of operations in which
they are engaged.
A shipowner who is engaged in the transportation of goods and/or
passengers is simply called an “owner”; One who operates a
fishing vessel or fishing boat (or a fishing fleet) is called a
“fishing boat owner”; One who operates a towing service is
called a “tug boat owner”, etc.
The owner may or may not be the proprietor of the vessel; he/she
may also command the ship or entrust it to a master who is at
his/her service.
5

6.

The Shipowner
The Owner
When a person/company who fits out and operates a ship, is also the
proprietor of it, he is also called “owner”. Usually a ship (and certainly
several ships), will not be owned by a single person (because of the
large investment required) but they will be owned by a group of persons
(or enterprises such as banks, partnerships, or stock listed firms), who
form a company or investment funds.
The Disponent Owner
The owner of a ship can choose not to operate his ship himself but to
entrust this to a third person or company. This can be done in several
ways : “Bareboat or demise charter”, by “Time charter” or via a
“Managing company” (pools).
The Company which hires a ship (or several ships) in bareboat charter or
in time charter is called a “Disponent Owner”.
6

7.

The Shipowner
The Managing Owner
If the commercial operation of the ship is entrusted to an
employment pool company we call such company “managing
owner”.
The owner can consequently be the ship owner as well as the
disponent owner or the managing owner of the ship. Today the
term “operator” is more and more used to indicate which
company is actually in control of the vesse lduring the voyage.
7

8.

The Shipowner
In-house: Commercial Management
Ultimate
beneficial owner
(Individual)
Shipping company
(Holding)
In-House
Commercial
Manager
In-House Commercial
Manager
In-House
Commercial
Manager
Special single
purpose ship
company
In-House
Management
Departments
Commercial,
Technical, Crewing
Voyage
Charter or
COA’s or pool
Time Charterer
Bareboat
Charterer
Time
Charterer
Voyage Charter or
COA’s or pool
Voyage
Charter or
COA’s or pool
8

9.

The Shipowner
External Management
Ultimate
beneficial
owner
(Individual)
Shipping
company
(Holding)
Full Manager
Special single
purpose ship
company
Commercial
Technical
Crewing
3rd Party
Shipmanager
Voyages
Maintenance
Personnel
Technical Manager
Maintenance
Personnel
Crew Manager
Personnel
9

10.

3rd Party Shipmanagement
What is Ship management? – Definition
Ship management, deals with the process of
managing a ship. Ship management is done by
independent companies, which use ships of other
companies or independent owners or financial
institutions.
The ship management company manages ships for
the owner against a monthly fee.
10

11.

3rd Party Shipmanagement
The 3rd party ship manager is considered the company
which is given the responsibility by the ship owner to
operate the vessel independent on an agreed payment of
fee.
It is considered as a separate cost center to the balance
sheet of the ship owner.
Ship manager and ship owner do not have any ownership
relationship between them.
11

12.

3rd Party Shipmanagement
Why owners use Ship management?
1. Ship managers add value due to their size they
get better deals.
2. Ship owners might be only investors without own
infrastructure.
3. The income tax rules in the domicile of the
owners may be too high. Ship managers operate
under tonnage tax regimes.
12

13.

3rd Party Shipmanagement
Advantages and disadvantages in employing ship managers:
• Cost effective
• Loss of contact to industry
• Big buying power
• Loss of contact to the ship
• Large network
• Loss of contact to seamen
• Multi-facet resources
• Dependence of manager
• Strong capital base
• Slow in reaction to changes
• Large pool of seamen
• 1 more possible claimant
• Part of rules development
• Just on among others
13

14.

The Crew Manager
Traditionally, the company that operated the ship (ship-owner
in-house manager or 3rd party ship manager) was also carrying
out the human resource function for the seagoing personnel.
Today, the increased operating advantage of specialization,
economies of scale and tax planning have made this function
often to be subcontracted to a 3rd Party Manager who
provides highly specialized crewing services. In such a case
the specific ship manager takes the role of Crew Manager.
A Crew Manager mainly acts as the employer of the seaman
on behalf of the ship-owner, or bareboat charter or his
collaborator 3rd party ship manager.
The main objective of the crew manager is to select, recruit
and train. Crew Manager and provide well trained and
experienced crew according to national and international
regulations.
14

15.

The Broker
What is a shipbroker?
A shipbroker is someone who arranges the ocean transport
of goods and commodities by sea, the employment of a
vessel or buys and sells ships on behalf of his clients.
15

16.

The Broker
What does a shipbroker do?
Shipbrokers act as intermediaries between shipowners and
charterers or the buyers and sellers of ships.
The broker is involved in many stages of a deal: presenting
the business to potential clients, negotiating the main
terms of a contract or sale, finalising the details of the
contract and following the deal through to its conclusion.
Increasingly shipbrokers also provide their clients with a
wide range of market intelligence and advice.
16

17.

The Broker and his role
Duties: links with the market
(BUYER<>SELLER,OWNER<>CHATERER)
Owner broker: ensures all charterers know the details of the
Vessel
Charter broker: ensures all shipowner know the need for a
ship
Post fixture department: resolves disputes between owner
and charterer to eliminate arbitration and or courts
Research Department: latest development in the market
17

18.

The Broker and his remuneration
Brokers
are remunerated by Commissions. The total
commissions are always mentioned in the recap and the
charter party (C/P).
It is an agreed % of the freight or time charter hire is to be
paid.
Usually 1.25% for all brokers involved in the transaction by
the owner or 1% to an exclusive broker.
Address Commission: is commonly paid to the charterer to
cover cost of managing the ship while it is on charter. 1.25%
to 2.5% is common.
18

19.

The Ship Agency
What is shipping agency or shipping agent?
A person or agency responsible for handling shipments and cargo at
ports and harbours worldwide on behalf of shipping companies.
They are also called port agents or cargo brokers. There are several
categories of agents such as: port agents, liner agents and own
agencies, each rendering specific services depending on the needs of
the shipping company they represent.
What do shipping agents do?
They will quickly and efficiently take care of all the regular routine
tasks of a shipping company. They ensure that essential supplies,
crew transfers customs documentation, and waste declarations are
all arranged with the port authorities without delay. Quite often,
they also provide the shipping company with updates and reports on
activities at the destination port so that shipping companies have upto-the minute information available to them at all times while goods
are in transit.
19

20.

The Agency and Responsibilities
Ensuring a berth for the incoming ship
Arranging for the pilot and the tugs if necessary
Drawing up the documents for the customs and harbour services
Assisting the master in making the necessary contacts with the
local authorities and the harbour authorities
Arranging for the necessary ship fresh water / provisions
Arranging for the necessary doctor for the crew any medical
assistance
Arranging for storage bunkers if these are needed
Arranging for the necessary repairs
Conveying instructions to and from the ship owner
Organizing the supply, transport and the handling of the goods
Organizing the necessary contacts with the stevedores
Collecting freights, cargoes
Contacting shippers and the receivers of the goods
20

21.

The Forwarder
What is Forwarder?
A freight forwarder, forwarder, or forwarding agent, also known
as a non-vessel operating common carrier (NVOCC), is a person
or company that organizes shipments for individuals or
corporations to get goods from the manufacturer or producer to
a market, customer or final point of distribution.
Forwarders contract with a carrier to move the goods.
A forwarder does not move the goods but acts as an expert in
supply chain management.
A forwarder contracts with carriers to move cargo ranging from
raw agricultural products to manufactured goods.
21

22.

The Forwarder
What is Forwarder?
Freight can be booked on a variety of shipping providers,
including ships, airplanes, trucks, and railroads.
It is not unusual for a single shipment to move on multiple
carrier types.
International freight forwarders typically handle international
shipments.
International freight forwarders have additional expertise in
preparing and processing customs and other documentation and
performing activities pertaining to international shipments.
22

23.

The Associations
WSC (World Shipping Council)
WCO (World Customs Organisation)
ICS (International Shipping Chamber)
ECSA (European Community Shipowners’ Associations)
ITF (The International Transport Federation)
IMEC (International Maritime Employer’s Committee)
BIMCO (Baltic and International Maritime Council)
InterManager (International trade association for the
shipmanagement)
ESPO (European Sea Port Organisation)
EPCSA (European Port Community Systems Association Operators)
IFSMA (International Federation of Shipmasters' Associations)
CLECAT (European Association for Forwarding, Transport, Logistics
and Customs Services)
CESMA (Confederation of European Shipmasters’ associations)
23

24.

Study Questions
1. Define the legal and commercial definition of the term
“shipowner”.
2. In which ways the shipowner entrusts the operation of his ship
to a third person or company?
3. What the shipmanagement deals with?
4. What is a 3rd Party Shipmanager?
5. Define the functions of shipmanagement.
24

25.

Study Questions
6. Why today the function of crew management is often
subcontracted to a 3rd Party Manager (the Crew Manager)?
7. What is a shipbroker and what its role in shipping
transactions?
8. A ship agent has a wide range of tasks and responsibilities.
List at least 5 of them.
9. What is the Forwarder and what its role in the supply chain?
25

26.

Study Material
21st Century Ship Management, Dickie J.W., 2014.
26