LECTURE 7

TITLE: Organisation and Management of a Shipping Company - Liner

1.0 OBJECTIVE

1.1 To explain the basic organisational structure of a shipping company.

1.2 To give details on some important component of the organisational structure

1.3 To explain some of the details in the management of a shipping company.

2.0 INTRODUCTION.

2.1 The general description of marine transportation system has been covered.

2.2 The types of ships used and cargo processed in international shipping has been clarified…..

2.3 ……i.e the operational part of marine transportation, apart from some description on port operation, has been made clear.

2.4 It is thus timely to introduce the economic part of marine transportation by introducing how a shipping company organises itself to manage sea transportation activities.

3.0 ORGANISATIONAL STRUCTURE

3.1 A shipping company may be of private type, of public company, or a division of a larger transport/commercial/industrial enterprise, or a government-owned entity, etc.

3.2 The organisation will depend on the size of the company. 3.3 The company is supervised by a Board of Directors headed by a

Chairman. 3.4 The board members are elected by the shareholders. 3.5 The daily management of the company is entrusted to a General

Manager. 3.6 The General Manager is nominated by the Board of Directors.

3.7 The General Manager is assisted by managers each incharge of one functional division.

3.8 The structure for different type of shipping services (liner & bulk) are different in many details.

3.9 The most elaborate if the organisational structure of a liner company.

4.0 ORGANISATION OF A LINER COMPANY

4.1 A liner company on average will operate a fleet of 15 to 20 ships.

4.2 Typical divisions under the responsibility of the managers are; the planning and research Division,…..

4.3 …..the operating division,….. 4.4 …..the conference division,…. 4.5 …..the technicial division,….. 4.6 …..the marine division,….. 4.7 …..the admin. And finance division. 4.8 …..the personnel division. 4.9 The planning and research division provide information on

how to set-up or adjust the liner services in meeting the requirement of the trade,…..

4.10 …..and will provide feedback information from other division. 4.11 Operating division deals with; allocation of cargos to the

various ships,….. 4.12 …..chartering of ships to cover extra demand,….. 4.13 …..bunkering arrangement world wide for the company’s

ships,…. 4.14 …..liner operation (managing cargo space for various agents)

,…. 4.15 …..marketing and sales,….. 4.16 …..insurance and claims. 4.17 The conference division deals with liaison with the various

conferences of which it is a member,….. 4.18 …..thus providing details on conference policy and adjustment

made by the conference that may affect the company. 4.19 The technical division deals with all technical and engineering

matters such as: 4.20 …..maintenance and repair of ships,….. 4.21 …..periodical survey,…..

4.22 …..classification and certificates,….. 4.23 …..and technical stock and inventory. 4.24 The marine division deals with,…. 4.25 …..nautical equipment,….. 4.26 …..manning of the ships,….. 4.27 …..victualling and catering department,….. 4.28 …..deck equipment for ship maintenance and cargo

equipment,….. 4.29 …..safety and safety training. 4.30 The admin. and finance division deals with collecting and

registering information and controlling the flow of money belonging to the company.

4.31 The personnel division deals with shore staff. 5.0 COLLECTION OF CARGO

5.1 The company establish relation with importers and exporters. 5.2 They employ agents who are firms of high commercial

standing. 5.3 These agents employ representative canvassers who maintain

personel contracts with their clients. 5.4 The agents keep cargo books that contain particulars of cargo

already booked for the company. 6.0 CARGO DOCUMENTATION

6.1 The first is the Bill of lading which is a document of title to the goods signed by the master ( or other duly authorised person) the serve as evidence of the terms and conditions for the carriage of the goods.

6.2 There are many types of bill of ladings, such as:….. 6.3 …..Received for Shipment B/L, acknowledge receipt of good

by shipowner,….. 6.4 …..Shipped B/L, notifying that cargo is already on board the

ship,…. 6.5 …..Foul B/L, when the good received by the captain is not in

apparent good condition,….. 6.6 …..Through B/L, covers the fowarding of goods from the port

of loading to port of destination,…..

6.7 Transhipment B/L, used when there is no direct service between the port of loading and the port of destination.

6.8 Exception B/L, a cpompany’s owned veresion of the standard format B/L used for special occasion.

6.9 The second is the Mate’s Receipt, signed by the chief officer acknowledging receipt of cargo on board the ship.

6.10 B/L is issued following the issuance of Mate’s Receipt. 6.11 The third is the Dock’s Receipt, issued for the cargo delivered

alongside the vessel. 6.12 The fourth is the Manifest, containing complete specification

of the goods loaded by the vessel for various destinations. 6.13 Manifest is drawn by the agents in the port of loading. 6.14 The fifth is the shipping permit. 6.15 The sixth is the consular invoice specifically for cargo with

export restriction such as weapons, etc. 6.16 The seventh is the certificate of origin. 6.17 The eighth is the exporter’s invoice.

7.0 TERMINAL OPERATION

7.1 Charges on ships arriving at port may be of the following: 7.2 …..local port charges including harbour fees, dockage of vessel,

wharf or shed charges,….. 7.3 …..wharfage or toll charges, inward and outward cargoes,….. 7.4 …..pilotage,….. 7.5 …..towage,….. 7.6 …..labour, stevedoring for discharge and loading of cargo,….. 7.7 …..miscellaneous, cargo inspection, local health and

quarantine, etc. 7.8 Customs requirements such as duty and clearance.