ITSM505 Case Study: Ship Management Proposal, Budget, and Services

This case study focuses on providing ship management services for a dry fleet. The assignment requires analyzing a correspondence between a ship owner and a ship management company, understanding the vessel's specifications and the services requested. The student must establish the correct crew composition and calculate associated wages based on the Cyprus Collective Bargaining Agreement (CBA), including European leading staff wages. The case study involves estimating dry dock intervals and costs, technical running costs, and crewing costs. The analysis culminates in preparing a detailed five-year expense budget and crafting a comprehensive offer letter to the ship owner. The goal is to create a competitive and realistic ship management proposal that secures the contract while considering all operational and financial aspects.

Date : 19th April’2019
To: “ABCD” Company
Attn.: Mr. Ship Owner
Instructor name: Mr. XYZ
Subject : Ship Management Services for your Dry Fleet Vessels
Dear Sir’s/ Madam’s,
Good Day
I would like to take this opportunity to introduce myself and my Ship Management
Company. We have been in this field since the last 14 years. We have been
working for various Ownership companies, handling their Vessel under our
Technical Support and Management Company.
We have been associated with some of the Best Ship Owners and Business Houses
in various countries, handling their fleet of Passenger Vessels, Dry Bulk (Bulk
Carriers/ General Cargo/ Heavy Lift Vessels), Liquid Cargo (Tankers/ Product
Carriers/ Chemical Cargo), LNG/LPG Carriers and Container & RoRo Vessels.
We also have Off Shore based companies for whom we manage their Off Shore
Fleet which includes Tug Boats/ Anchor Handling Vessels/ Towing Boats/
Platform Handling Vessels/Drilling Vessels/ Cable Laying Vessels/
Seismic Vessels, and Fire Fighting Vessels. We have our Head Office at
Singapore, which is the central hub for Shipping and Logistics related to the
Marine Industry. We have our sub- offices in Mumbai, Dubai, Hong Kong, Manila
and Tokyo.
Our highly qualified team of ex-mariners who have years of practical Ship going
experience combined with a team of qualified and experienced management
leaders, gives us an added advantage in this highly competitive world of Ship
management and Technical Support. Our Technical Team consists of Marine
engineers who have been sailing as Chief Engineers and are young and energetic
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to give the best and utmost support and solution to any problem faced on board by
the vessel and its staff.
As a highly respected Shipping Management Company, it’s our responsibility and
our goal to provide the best service to our Ship Owners at the minimum cost and
expense. Our management company provides the following services as mentioned
below, but not limited to these,
- Crew Management including the Repatriation/ Embarkation cost for the on-
board staff, to make sure that the travel expenditure is at the minimum, the
Agency fees is the least, Visa/ Official Travel documents charges
- Technical Management/ Technical Support which includes daily reporting
from the Vessel for the maintenance work that is being carried out on the
vessel. This will include any minor repairs/ and any major repairs or
maintenance to be carried out only after consultation of the vessel’s
superintendent.
- A fully approved computerised PMS (Planned Maintenance System) on-
board every vessel under our management. The system is connected online
which gives us the added advantage to know the on-board status of every
Equipment/ Machinery/ Certificate Status / in real time. This PMS system is
connected with the Inventory on-board for all the various departments i.e
Deck /Engine/ Saloon. Same is kept up-to-date, every time any item get
used/ consumed on-board.
- Our Technical Team also advices and takes assignments for new ship take
over from Ship Yards and also for takeover of vessels. The Technical team
visits the potential vessel , inspects it as per our detailed checklist and
requirements , gets the feedback from other superintendents to make a team
decision before taking over a running Vessel. During New Yard delivery,
the top management of the onboard staff stays and works with the yard staff
to fully understand all the aspects of the vessel and how it functions. Sea
trials are carried out with the ship staff to get an on hands experience of the
New Ship’s/ Take over Vessels.
- We also undertake Chartering of Vessels and Cargo with our in-house
experts in commercial and financial fields. Ex-Marine Masters with
professional background in Ship Chartering are given the assignments for
the Commercial Operations and for Time/ Voyage Chartering of Vessels.
- To make sure that our manged Vessels are in top sea worthy conditions, for
regular maintenance and specialised Surveys/ Maintenance work, Dry
Docking of Vessels is well planned ahead for the financial year. The
Vessel’s Superintendent has the responsibility to make sure that the Vessel
is Dry Docked at that particular period and all the work is carried out within
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the pre-defined Budget so that the Vessel does not have any difficulties till
the next Dry Dock Period.
- Bunkering is our Main and Core sector. We have pre-defined calculations
for the Bunker consumption for every operation of and on the Vessel. This
includes Daily Heavy Oil/ Diesel Oil Consumption, Bunker consumption in
Port (Loading / Unloading including additional consumption for Cranes,
Cargo Oil Pumps, Mooring Operation, COW- Crude Oil Washing, IG
Plants in Tankers [Inert Gas], etc ), Bunker consumption during Ballasting/
Deballasting operations which also includes BWM (Ballast Water
Management Program for Ballast Exchange out at sea)
- We take care and study careful for ordering “Special Bunkers” – Low
Sulphur Heavy Oil/ Low Sulphur Diesel Oil/ for ECA (Emission Control
Areas) and SECA (Sulphur Emission Control Areas) so that the Expensive
Special Bunker is taken at ports where the Bunker price is at minimum. E.q
when vessel is passing Singapore enroute.
- For every Vessel’s Inspection which includes Class/ Flag/ State
Certification and Inspection, we plan well in advance so that the Vessel has
all its “Mandatory and Statutory certificates” valid and in order. We also
conduct Internal / External Audits which are compliant to the ISM
(International Safety Management Code) requirement and mandatory as per
our Management Policy. Every 6 months, it is mandatory for the Vessel’s
Superintendent to make a visit to the Vessel and make sure that he inspects
the Vessel as per out in house Checklist for visiting Superintendent Major/
Minor Repairs
- We have Experienced and Well Trained Staff on our Vessels. They are also
given an In house training as per their Rank and experience so that before
stepping on board on any of our vessels they are well familiarized with the
Company’s policy and conditions.
We pride ourselves as fully compliant to the IMO Code / SOLAS / MARPOL
conventions and other International Regulations/ Flag State Regulations/
International Conventions Company.
Our long history and background in Marine Industry in including Training and
imparting knowledge for further growth, makes us stand out in this competitive
field.
Please find attached the File which gives and overall comprehensive data for the
Vessel’s operation cost which includes the Salary, Bunker consumption,
Maintenance Cost, Dry docks, Repair Expense etc.
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We assure you that your vessel will be in very good hands, will be running
without any worries of Off-hire under well trained and responsible Officers &
Crew.
With kind regards,
Mr XYZ
Ship Management Company
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