Process of Handling And Monitoring

SHIPPING AGENCY AND OPERATIONS

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
BACKGROUND.............................................................................................................................3
IDENTIFICATION AND ANALYSIS OF ISSUE.........................................................................3
RECOMMENDATIONS.................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Operation management refers to a process of handling and monitoring whole production unit of a
by implementing continues improvement in it so that optimum utilisation of resources would be
achieved by them (Visvikis & Panayides, 2017). For this report, Singapore Shipping industry
case study is taken for consideration which aims to achieve clean fuel energy in their business
operations before 2020 as per the orders by United Nation Agency (Andrikopoulos & et al.,
2019). Various issues which would be faced by the industry members will be identified and how
companies could cope up with it is explained. Different recommendations which companies and
Maritime and Port Authority of Singapore must inculcate in to their working are scrutinised.
BACKGROUND
It was already announced in 2016 by International Maritime Organisations that they will
implement new sulphur regulations rule by January 2020 which every shipping company have to
comply with. IMO02020 regulations states that oil which has 0.5% sulphur will only be used by
company around the world (Singapore's shipping industry aims, 2019).
IDENTIFICATION AND ANALYSIS OF ISSUE
Singapore is a hub of shipping industry due to large oil refiners but melting Artic ice is
forcing them to change their route which will create negative environment for them as fuel price
is likely to get increase due to new regulations (Lam & et al., 2015). For instance, Gasoil average
rate in the market is 280 dollars per ton which will increase up to 380 dollars per ton resulting in
less trade or orders as customers then prefers to opt other way which is cheap as compare to this.
So in this case, company like VLCC which is one of the largest shipping company is bound to
pay approximately 25% of overall amount they used to pay while buying Gasoil (Okada,
Namatame & Sato, 2016).
Other issue is disruptions of oil industry which will overall impact business in a negative
way. For instance, 4 million barrels is produced on a daily basis of Gasoil but as if companies
stops using it then thousands of people will become unemployed as they does not have proper
expertise in making sulphur free or less sulphur oil (Perera & Mo, 2016). So to avoid this,
company will start using scrubber which will give short term profit and long term losses. For
instance, each scrubber used in the ship cost minimum one million to install, so company needs
to invest in the starting and waits for it to get positive or favourable result for it. Scrubber will