Diploma in Ship Management - Module 1: Introduction to the Shipping Industry and the Role of the Ship Manager - Lloyds Maritime Academy [2024, PDF]

Introduction to the course..........................................................................................6
1.1 About Your Course Director .................................................................................... 7
1.2 Structure of the Course ........................................................................................... 8
1.3 Knowledge and Experience ..................................................................................... 9
1.4 Studying the Course............................................................................................... 10
1.5 Tutor Marked Assignments and Case Study ........................................................ 12
2. Introduction to the module......................................................................................13
3. Introduction to the Shipping Industry ....................................................................16
3.1 A Truly Global Industry .......................................................................................... 20
3.2 Cyber Security.........................................................................................................21
3.2.1 The Top Five Cyber Risks at Sea ................................................................ 21
The Most Vulnerable Ships Systems..................................................................... 22
3.2.2 The Cyber Security Officer ......................................................................... 22
3.2.3 5 Key Cyber Threats Explained.................................................................. 24
3.3 Supply and Demand for Ships............................................................................... 25
3.3.1 The Shipowner ............................................................................................ 25
3.3.2 International Trade Terms (INCOTERMS) ................................................. 27
3.4 The Four Main Types of Charter Party.................................................................. 30
3.4.1 The Bareboat Charter................................................................................. 30
3.4.2 The Time Charter ........................................................................................ 30
3.4.3 The Voyage Charter .................................................................................... 30
3.4.4 The Continuous Voyage Charter ............................................................... 30
3.5 Liner Trade and Tramp Trade ............................................................................... 30
3.5.1 Liner Trade .................................................................................................. 31
3.5.2 Tramp Trade ............................................................................................... 31
3.6 Seaworthiness and Cargo worthiness ................................................................... 32
3.7 Contracts of carriage and bills of lading - The Hague Visby Rules ..................... 33
3.7.1 Breakeven Point.......................................................................................... 34
3.7.2 Ships, Ship Types and Cargoes.................................................................. 35
3.7.3 What is a TEU?............................................................................................. 37
Module 1 – Introduction to the Shipping Industry and the Role of the Ship Manager 3
3.7.4 A 20 Foot Dry Bulk Container .................................................................... 37
3.7.5 Ships and Legislation.................................................................................. 38
3.7.6 Top Five Shipowning Countries................................................................. 38
3.7.7 The Relationship between Ownership and Flag State............................. 39
3.7.8 The Top Five Leading Financial and Legal Centres of the World for the
Maritime Industry....................................................................................... 40
3.8 The Shipping Industry Bodies................................................................................ 43
3.8.1 The World.................................................................................................... 43
3.8.2 The Shipping Industry ................................................................................ 43
3.8.3 The Customers (Shippers).......................................................................... 44
3.9 The Shipping Industry Regulators......................................................................... 45
3.9.1 Regulators ................................................................................................... 45
3.9.2 Legislators ................................................................................................... 45
3.9.3 The Inspection Bodies................................................................................ 45
3.10 The Maritime Legislation Framework................................................................... 46
3.10.1 The IMO Council Members ........................................................................ 47
3.10.2 Using Maritime Law as a Ship Manager ................................................... 48
3.11 The Differences between the Shipowner and Ship Management ..................... 51
3.12 Legal Responsibilities............................................................................................. 54
3.13 Conclusion...............................................................................................................55
4. THE ROLE OF THE SHIP MANAGER ............................................................................56
4.1 What is Ship Management? ................................................................................... 56
4.1.1 Functional Manager.................................................................................... 57
4.1.2 Operational Manager ................................................................................. 58
4.1.3 Strategic Manager ...................................................................................... 58
4.1.4 Planning.......................................................................................................58
4.2 Management Control............................................................................................. 59
4.2.1 Planning.......................................................................................................60
4.2.2 Establishing Standards of Performance ................................................... 60
4.2.3 Monitoring Actual Performance................................................................ 60
4.2.4 Comparing Actual Achievement Against the Planned Target................. 60
Module 1 – Introduction to the Shipping Industry and the Role of the Ship Manager 4
4.2.5 Rectifying and Taking Corrective Action ................................................... 60
4.3 Organizations and Their Structure ....................................................................... 61
4.4 Leadership Styles in Management........................................................................ 64
4.4.1 The Authoritarian Style .............................................................................. 65
4.4.2 The Democratic Style.................................................................................. 65
4.4.3 The Genuine Laissez-Faire Style ................................................................. 65
4.5 The Do’s and Don’ts Leaders Should Keep in Mind............................................. 66
4.6 Motivation...............................................................................................................69
4.7 What Does a Ship Manager Do?............................................................................ 70
4.7.1 Effective Communications ......................................................................... 71
4.8 Relationship with Other Departments.................................................................. 72
4.9 Maintenance Systems ............................................................................................ 75
4.9.1 IACS Members............................................................................................. 76
4.10 Maintenance and the Ship Manger in Respect of the ISM Code........................ 77
4.10.1 Planned Maintenance ................................................................................ 83
4.10.2 Condition Based Maintenance (CBM) ....................................................... 83
4.10.3 Shock Pulse Monitoring ............................................................................. 84
4.10.4 Vibration/Noise Monitoring....................................................................... 84
4.10.5 Machinery Condition Monitoring .............................................................. 85
4.10.6 Non Destructive Testing............................................................................. 85
4.10.7 A Strategic Approach to Maintenance Systems and Their Uses............. 86
4.11 Purchasing ..............................................................................................................87
4.12 Just-In-Time Purchasing ......................................................................................... 88
4.12.1 What Does Just-In-Time Mean? ................................................................. 88
4.12.2 How Does Just-In-Time Work? ................................................................... 88
4.12.3 Advantages.................................................................................................. 88
4.12.4 Disadvantages............................................................................................. 88
4.13 Inventory Management ......................................................................................... 89
4.13.1 How is Inventory Management Achieved? ............................................... 89
4.14 Supply Chain...........................................................................................................89
4.14.1 How Does a Supply Chain Work? .............................................................. 89
4.14.2 Five Tips to Improve Supply Chain Efficiency........................................... 90
Module 1 – Introduction to the Shipping Industry and the Role of the Ship Manager 5
4.15 Blockchain Technology .......................................................................................... 93
4.16 An Introduction to the Big Data Concept ............................................................. 95
4.17 Additional Costs of Purchasing Practices ............................................................. 96
4.17.1 ShipServ.......................................................................................................96
4.17.2 TradeNet......................................................................................................97
4.18 International Marine Purchasing Association (IMPA) Stores Guide ................... 97
4.18.1 IMPA Stores Coding.................................................................................... 97
4.18.2 Conclusion................................................................................................... 98
4.19 Checking Crew Numbers, Qualifications, Experience for Manning Contracts .. 99
4.20 ISM Code – Part A – Implementation..................................................................100
4.20.1 Part A - Section 6 – Resources and Personnel........................................100
4.20.2 “Certificated” .............................................................................................103
4.20.3 “Qualified” .................................................................................................104
4.20.4 “Medical Fitness”.......................................................................................104
4.21 Lines of Communications for Efficient and Effective Operation of Ships........ 110
4.22 Preparing Reports and Presentations ................................................................115
4.23 Sale and Acquisition of Ships ..............................................................................117
4.23.1 Ship Broker................................................................................................117
4.23.2 How to Buy or Sell a Ship – Getting the MOA Penned...........................118
5. CONCLUSION ............................................................................................................121
BIBLIOGRAPHY ................................................................................................................122
APPENDIX A – ENVIRONMENT, SOCIAL, GOVERNANCE (ESG).....................................125