Our Team. Dedicated. Exclusively. to the. Management. Container Ships. Worldwide

Transcription

1 Contships Management Inc. Reliable Services

2 Our Team is Dedicated Exclusively to the Management of Container Ships Worldwide

3 Protect the Environment

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5 Malcolm Introduction Malcolm P. P. McLean to McLean (1913 Container 2001) Shipping ( ) Malcom P. McLean ( ) fundamentally transformed the liner business. He is attributed to being the pioneer of container ships. The idea for shipping large cargo boxes came to him one day in 1937 in Hoboken, N.J., as he watched longshoremen loading and unloading goods. It dawned on him that sorting and packing goods into containers for shipment would make the process faster, safer and cheaper. In the early 1950s, he had 1,776 trucks and thirty-seven transport terminals along the eastern seaboard, he had built the largest trucking fleet in the Southern States and the fifth-largest in the USA. He finally went on to pursue his idea of containerizing cargo in 1955 when he sold his share of McLean Trucking and bought the Pan Atlantic Steamship Company of Mobile, Alabama. First ever converted Container ship, Ideal-X, 1956 In 1956, he developed the metal shipping container, which replaced the traditional break bulk method of handling dry goods and revolutionized the transport of goods and cargo worldwide. On 26 April 1956, Malcolm McLean's converted World War II tanker, the Ideal X, made its maiden voyage from Port Newark to Houston in the USA. It had a reinforced deck carrying 58 metal container boxes as well as 15,000 tons of bulk petroleum. By the time the container ship docked at the Port of Houston six days later the company, later became known as Sea-Land First Service, ever was converted already Container taking orders ship, to "Ideal-X", Ideal-X, ship goods 1956 back to Port Newark in containers. McLean In 1956, was he named developed "Man the of the metal Century" shipping by the container, International which Maritime replaced Hall the of Fame. traditional break bulk method of handling dry goods and revolutionized the transport of goods and cargo worldwide. On 26 April 1956, Malcolm McLean s converted World War II tanker, the Ideal X, made its maiden voyage from Port Newark to Houston in the USA. It had a reinforced deck carrying 58 metal container boxes as well as 15,000 tons of bulk petroleum. By the time the container ship docked at the Port of Houston six days later the company, later became known as Sea- Land Service, was already taking orders to ship goods back to Port Newark in containers. McLean was named Man of the Century by the International Maritime Hall of Fame. 1

6 Container shipping has been the driving force in globalization for the past 50 years. Its standardization has allowed for integration with the onshore transport systems and has lead to a great reduction of costs in international trade and increased its efficiency. First a shipper fills a container with cargo, then it is transported by truck, rail or barge to a container port where it is loaded onto a container vessel. It is then shipped either to its destination port directly or via a hub port and then on a feeder vessel to its final destination. At its destination port it is off-loaded and delivered to its receiver by truck, rail or barge. Advantages of container shipping compared with other shipping modes include: less cargo handling, efficient port turnaround, highly developed intermodal network and reduced shipping time. Container shipping companies operate scheduled or liner services, using owned or charteredin vessels, aiming to attain an optimal frequency and utilization level. Major container shipping companies have been increasingly chartering-in a greater portion of their fleet from third party owners on competitive charters rather than purchasing vessels outright. Container shipping has a fundamental position in global trade; it is one of the fastest growing sectors in shipping, benefiting from a shift in cargo transport to unitization. The type of vessel deployed on a certain route depends on the size and type of trade as well as the port infrastructure. Typically large vessels serve routes between major ports, while feeder vessels make connections between the major hub ports and regional ports. The containers have standard dimensions and are made of steel. The standard measure of units are the TEU, 20-foot Equivalent Unit which represents a 20 foot long container, and the FEU, 40-foot Equivalent Unit which represents a 40 foot long container, both are typically 8.5 feet high and 8 feet wide. There are also high cube 40 and 45 foot containers, which have the same width as the standard containers but are 9.5 feet high. Specialized containers of all the sizes listed above exist: refrigerated containers are used for perishable goods and tank containers are used to carry liquids such as liquefied gases, spirits or chemicals. The use of high cube FEUs has increased as shippers can transport more lightweight consumer goods in a single container at an overall lower cost. There are also 10-foot long containers with the standard width and height, however they are less commonly used. The growth of containerization over the past quarter century has been exponential. 2

7 Below are two graphs illustrating the increase in container trade and the growth of the container fleet capacity. Containership Fleet Capacity (Thousand TEUs) Total Container Trade and Fleet Capacity Global Container Shipping Trade (Mln Tonnes) Global Container Shipping Trade Containership Fleet Capacity Source: Company data The Multiplier Effect of Merchandise Trade as a Percentage of GDP Global GDP in US$ Billions Global GDP in US$ Billions World Merchandise Trade (% of GDP) World Merchandise Trade (% of GDP)* Global GDP in US$ Billions *Merchandise trade as a share of GDP is the sum of merchandise exports and imports divided by the value of GDP, all in current U.S. dollars. Source: The World Bank 3

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9 The Ship Management Company The Scope of Ship Management 2 Opera ons Department 3 Crewing and Ticke ng Department 4 Supplies and Spares Department LI TY ND SAFETY QUALITY RD ITY OR S THE PRI YI QUA 5 SAFE T 1 Marine, Safety & Quality Department IS T H E S T A 6 Technical Department 7 Chartering Department 8 Sale & Purchase Department 9 $ Finance Department 10 Accoun ng Department 11 Legal Department 12 Insurance Department 13 Administra on & HR Department 14 Informa on Systems Department 5

10 Contships Management Inc. CEO EXECUTIVE COMMITTEE DPA CFO & DEPUTY CEO COO OPERATIONS TECHNICAL SPARES LEGAL CHARTERING S&P ACCOUNTING ADMIN CREW PMS SUPPLY IS TICKETING FORWARDING HR MS&Q FLEET 6

11 The Ship Management Company 1. The Scope of Ship Management SHIP MANAGEMENT is the function that coordinates the shore-based and ship-based operations of a vessel so as to ensure compliance with customer and regulatory requirements relating to safety, security, and environmental protection, using the available resources efficiently and effectively. The key goals and objectives of quality ship management are to manage vessels safely and efficiently, to ensure the well-being of the crews, to carry the cargoes promptly and safely to their destinations, to respect the environment, and to safeguard the investment and interests of the principals. In the last few decades it has become customary for ship-owners to employ thirdparty managers for a number of ship-management functions. This is the result of new regulations being introduced each year in connection to vessel manning and marine personnel training, vessel maintenance and inspections, insurance, communications, safety, pollution, and certification. The trend has been accelerated by non-traditional investors entering shipping without management experience and by the owners of smaller companies who find it difficult to survive in the present competitive business environment. The management functions outsourced to third-party ship management companies can vary from technical management of the vessels to crewing and crew training, compliance with requirements for certification, insurance, new construction supervision, chartering, accounting, sale and purchase of vessels, bunkering, provisioning, consultation, financial services, and others. Contships Management Inc. ( Contships Management or the Company ) is a ship management company with the required experience, skills, and resources to render all these services. The Company is registered in the Marshall Islands and has established its operating office in Greece pursuant to the provisions of Law 89/1967 which provide special dispensations for foreign companies operating in Greece. A ship-management agreement is signed between each ship-owning company and Contships Management detailing the governing terms and conditions. Contships Management consists of the following departments: Operations, Crewing and Ticketing, Supplies and Spares, Safety and Quality, Technical, Chartering, Sale and Purchase, Administration and HR, Information Systems, Finance, Accounting, Legal, and Insurance. 7

12 Each department within Contships Management is headed by a Manager, responsible for planning, directing and coordinating the operations of the department, being accountable for the efficient performance of the department. The corresponding Managers are responsible for adhering to and carrying out the goals and objectives of the Company, utilizing resources efficiently and effectively and where possible, improving systems and mentoring departmental members in managing their career development and progression. Income producing departments are responsible for increasing the resources of the Company and developing policies. The Managers of each department assume a key role in promoting cooperation between the departments and the marine personnel onboard the vessels. The Executive Committee ( EXCOM ) is comprised of ten key Managers and convenes at least once a week to discuss important operational, technical or other matters relating to the trading of the vessels, the implementation of the Company s policies by the shorebased and ship-based personnel. The Chairman of the Executive Committee is the CEO. The other nine members are: i. CFO ii. iii. iv. COO Operations Manager Technical Manager v. Chartering Manager vi. vii. viii. ix. Supplies & Spares Manager Accounting Manager Administration Manager Legal Manager 8

13 Operations Department 9

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15 2. Operations Department The Operations department has the responsibility for the safe and efficient operation of the vessels, ensuring they perform without delays and off-hires (i.e. loss of income), damages, etc. and that the cargo is delivered in a safe and efficient manner. The Operations department is client-oriented and provides also post-fixture services to charterers. The Operations department has the key task of coordinating all the departments, the vessels, the charterers, the shippers, the consignees, the agents, the shipbrokers, and any other party involved in the operation of the vessels who attend to the various matters may arise at the ports of call of the vessels. Efficiency in all cargo-related matters is the foundation of profitable vessel operations. The Operations department provides the vessels with general information about their trade, and liaises with other appropriate parties to ensure efficient cargo transportation and operations. Vessels are also provided with guidelines for handling loss of cargo, cargo claims, and other charter party disputes. Prior to the conclusion of a charter party, the Operations department provides support to the Chartering department on commercial, marine, and technical matters. All relevant feedback is passed on to the Chartering department with the aim to assist inhouse brokers in seeking, negotiating, and concluding charter parties and other relevant agreements for the employment of the vessels. After the charter party is concluded, it is the duty of the Operations department to transmit all necessary voyage instructions to the vessel in order to perform the obligations of the ship-owner under the charter party. The Operations department includes two additional sub-divisions: Bunkering and Disbursements. The Operations department is also responsible for (i) scheduling and planning the bunker replenishment of the vessels i.e. the bunker quantity and purchase port for the bunkers needed, conducting negotiations, and concluding the contracts of bunker supply, and (ii) checking the pro-forma port disbursements and invoices of port expenses, as well as fees and expenses for passages through canals, rivers or straits which require pilotage, whether the vessel is on charter or not, or is being re-positioned by the owners. 11

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17 Crewing and Ticketing Department 13

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19 & 3. Crewing and Ticketing Department The Crewing departmentin coordination with the Operations department and the Marine, The Crewing and Ticketing Department in coordination with the Operations department Safety & Quality department is responsible for: and the Safety & Quality department is responsible for: i. Recruiting and appointing fully qualified, medically fit, and experienced i. Recruiting and appointing fully qualified, medically fit, and experienced seafarers onboard the managed vessels, according to the criteria set by seafarers onboard the managed vessels, in conformity with relevant Contships Management and in conformity with relevant provisions and provisions procedures; and procedures set by Contships Management; ii. ii. Maintaining a pool of suitable, qualified, and medically fit seafarers on leave for rotation; iii. iii. Ensuring that the training procedures of the Company are properly and fully implemented; iv. iv. Maintaining Maintaining and and updating proper records records of of the the seafarers seafarers i.e. i.e. personal personal data, data, qualifications, qualifications, training, training, evaluation, evaluation, and and appraisal. appraisal. In addition, the department monitors the developments relating to international rules In addition, the department monitors the developments relating to international rules and and regulations, conventions, industry requirements, environmental issues, updating regulations, conventions, industry requirements, environmental issues, updating relevant relevant instructions and/or manuals as required, and communicating the above instructions and/or manuals as required, and communicating the above information to information to shore-based and ship-based personnel for familiarization and shore-based and ship-based personnel for familiarization and compliance purposes. compliance purposes. The Operations Managers are responsible for appointing the marine personnel to vessels The Operations Managers are responsible for appointing the marine personnel to according vessels according to the to relevant the relevant MLC, MLC, STCW STCW and and flag flag requirements. requirements. Crew Crew members members have have a fixed a fixed term term contract contract with with the the ship-owning ship-owning company company of a of vessel a vessel and usually and usually originate originate from Greece, from Greece, Philippines, Philippines, and Eastern and Eastern Europe. Europe. Additionally, Additionally, operators operators need to need maintain to maintain a group a group of auxiliary of auxiliary crew members crew members on standby on standby in case a in person case a onboard person onboard needs to needs be replaced. to be replaced. Finally, they Finally, are responsible they are for responsible identifying for and identifying resolving potential and resolving crew member potential matters. crew member matters. The department is responsible for the scheduling and purchasing of airplane tickets at The economical department prices is for responsible the transportation for the scheduling of the crew and members purchasing from of their airplane home tickets country at economical to the embarkation/destination prices for the transportation and of vice the versa. crew members The department from their is also home responsible country to for the obtaining embarkation/destination visas and coordinating port with and port vice and versa. manning The department agents. is also responsible for obtaining visas and coordinating with port and manning agents. The MS&Q Crew Training Coordinator coordinates the on-going training and development The plan of MS&Q ship-based Crew personnel Training and Coordinator collaborates coordinates with the Safety the on-going and Quality training department and development plan of ship-based personnel and collaborates with the Marine, Safety and and the Superintendent Engineers of the Technical department so as to organize training Quality department and the Superintendent Engineers of the Technical department seminars onboard and ashore. so as to organize training seminars onboard and ashore. 15

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21 Supplies and Spares Department 17

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23 & 4. Supplies and Spares Department The Supplies and Spares department is responsible for purchasing and freight forwarding The Supplies and Spares department is responsible for purchasing and freight forwarding all stores, provisions, supplies, equipment, spares and services needed by the vessel and all stores, provisions, supplies, equipment, spares and services needed by the vessel and its crew, in the most cost-efficient and expedient manner, while ensuring necessary its crew, in the most cost-efficient and expedient manner, while ensuring necessary quality quality standards are maintained. standards are maintained. These requisitions are procured from around the world and from various approved These suppliers requisitions in order to are achieve procured competitive from around prices. The the range world of and products from needed various is approved large so suppliers the products in order are classified to achieve according competitive to the prices. following The range three of sections: products the needed Ship-supply is large so section, the products the Contracted are classified items section according and to the the Spares following section. three sections: the Ship-supply section, the Contracted items section and the Spares section. The Supplies and Spares Manager reviews the terms and charges of every invoice, which is submitted for final approval and forwarded to the Accounting department for The Supplies and Spares Manager reviews the terms and charges of every invoice, which executing the payment. For each requisition, the Supplies and Spares Manager ensures is submitted for final approval and forwarded to the Accounting department for executing that a number of different quotations for the same quality and delivery are obtained the payment. For each requisition, the Supplies and Spares Manager ensures that a when possible in order to achieve a competitive bidding process. number of different quotations for the same quality and delivery are obtained when possible in order to achieve a competitive bidding process. Market research, including negotiation for the best terms and discounts, interviewing and meeting with suppliers, are all routine tasks for the Supplies and Spares Department. Market research, including negotiation for the best terms and discounts, interviewing The Supplies and Spares Manager is responsible for producing the relevant budgets and and KPI s meeting to monitor with and suppliers, assess performance. are all routine tasks for the Supplies and Spares Department. The Supplies and Spares Manager is responsible for producing the relevant budgets and KPI s All material to monitor needs and are assess originally performance. generated from the respective vessel, reviewed and approved by the Manager of each relevant department and then passed on to the All Supplies material and needs Spares are department originally for generated processing. from the respective vessel, reviewed and approved by the Manager of each relevant department and then passed on to the Supplies and Spares department for processing. The requisition, ordering, and approval process by Technical & MS&Q department must be separated from the commercial enquiry and supply process, thus increasing the transparency and improving efficiency through specialization. The requisition, ordering, and approval process by the Technical and MS&Q departments must be separated from the commercial enquiry and supply process, thus increasing the transparency and improving efficiency through specialization. 19

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25 SAFETY QUALITY SAFETY IS THE PRIORITY QUALITY IS THE STANDRD Marine, Safety & Quality Department 21

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27 & Marine, Safety & Quality Department The Marine, Safety and Quality (MS&Q) department is responsible for implementing the The Marine, Safety and Quality (MS&Q) department is responsible for implementing Safety, Health, and Environmental Protection policy of Contships Management. The the Safety, Health, and Environmental Protection Policy of Contships Management. department consists of Certified Officers with marine background, each of whom is The responsible department for a consists number of of Certified vessels. Officers The Head with of marine the department background, is the each Designated of whom is Person responsible Ashore for (DPA) a number under of the vessels. International The Head Safety of Management the department Code is the (ISM) Designated and he is Person the direct Ashore link between (DPA) under vessels the and International top management Safety Management Code (ISM) and he is the direct link between vessels and top management. In particular, the MS&Q department coordinates and controls the implementation of the In Safety particular, Management the MS&Q System department (SMS), which coordinates includes: and controls the implementation of the Safety Management System (SMS), which includes: i. Instructions and procedures for crews to ensure safe operation and i. Instructions protection and of the procedures environment for crews at all times; to ensure safe operation and protection ii. of the Instructions environment and procedures at all times; for proper ship and equipment maintenance and ii. Instructions operation; and procedures for proper ship and equipment maintenance and iii. operation; Instructions and procedures for effective monitoring of cargo operations, cargo protection, and voyage management; iii. Instructions and procedures for effective monitoring of cargo operations, cargo iv. Instructions and procedures for effective communication and document protection, and voyage management; control; iv. Instructions and procedures for effective communication and document control; v. Defined levels of authority and responsibility and required crew qualifications v. Defined levels of authority and responsibility and required crew qualifications onboard; onboard; vi. Procedures for handling and reporting emergency, accident, and nonconformity situations, including preparation for and response to emergency vi. Procedures for handling and reporting emergency, accident, and non-conformity situations, situations; including preparation for and response to emergency situations; vii. vii. Procedures Procedures for for carrying carrying out out safety safety inspections inspections and and audits; audits; viii. viii. Procedures Procedures for for review review and and improvement, incorporating analysis of of third party inspections inspections feedback; feedback; ix. ix. Oversight and and alignment alignment of procedures of procedures within within the SMS the and SMS compliance and compliance thereto; x. Arranging thereto; and coordinating certification audits and issuance of the relevant x. DOC, Arranging SMC, ISSC, and MLC coordinating certificates; certification audits and issuance of the relevant xi. Carrying DOC, SMC, out safety, ISSC, MLC security certificates; audits, and drills onboard the vessels and onshore xi. by means Carrying of desktop out safety, exercises; security audits, and drills onboard the vessels and xii. Planning onshore and by means authorization of desktop of exercises; inspections of the vessels by classification xii. societies, Planning flag and authorities, authorization and potential of inspections vetting on of behalf the vessels of the charterers; by classification societies, flag authorities, and/or potential vetting on behalf of the xiii. Identifying training needs and implementation of a training plan for onboard charterers; and onshore personnel. xiv. Monitoring all forthcoming legislation and requirements and prepare staff on board and ashore accordingly. 23

28 The xiii. dedicated Identifying departmental training team needs oversees and implementation the vessels to of ensure a training they plan comply for onboard with the SMS of the and Company onshore along personnel. with all national and international rules and regulations at least twice xiv. a year. Monitoring all forthcoming legislation and requirements and prepare company s staff on board and ashore accordingly. Areas of improvement identified during the attendance of the vessels are investigated and The dedicated departmental team oversees the vessels to ensure they comply with the followed up promptly in order to promote continued improvement and minimization of SMS of the Company along with all national and international rules and regulations at least risk during twice a their year. daily operations. The MS&Q department is responsible for collecting all necessary information required for the preparation and implementation of the Management Areas Review of of improvement the Company identified which is carried during out the at attendance least once of a the year. vessels The department are investigated is also and responsible followed for up the follow promptly up and in order the implementation to promote of continued the set goals improvement defined by and the minimization Management of Review. risk during Also Safety their Meetings daily operations. are conducted The MS&Q at frequent department intervals. is responsible in collecting all necessary information required for the preparation and implementation of the Management Review of the Company which is carried out at least once a year. The DPA performs a central function within the organization in supporting, promoting, The department is also responsible for the follow up and the implementation of the set and administering the effective implementation of the SMS. He has direct access to the goals defined by the Management Review. Also Safety Meetings are conducted at EXCOM and to the CEO. His responsibilities and duties are as follows: frequent intervals. i. To ensure that the SMS of the Company is effectively implemented and maintained; The ii. DPA To performs promote a central awareness function to all seagoing within the staff organization of the need in to supporting, operate the promoting, vessels to and administering the industry the standards effective consistent implementation with International of the SMS. and He has National direct Legislation access to and the EXCOM and according to the to CEO. the SMS His responsibilities of the Company; and duties are as follows: iii. To ensure that the requirements of the ISM Code are implemented and i. maintained; To ensure that the SMS of the Company is effectively implemented and maintained; iv. To serve as the communication link between the ship and the Head Office with ii. To promote awareness to all seagoing staff of the need to operate the vessels regards to all matters of Safety, Health, and Environmental Protection; to the industry standards consistent with International and National v. To Legislation monitor all and Safety according and Pollution to the Prevention SMS of the aspects Company; of the operation of each ship; vi. iii. To To report ensure to the that Management the requirements all safety of problems the International identified in Safety the implementation Management of Code the SMS (ISM of Code) the Company; are implemented and maintained; vii. iv. To To ensure serve all as the communication shore-based and link ship-based between the staff ship understand, the Head accept, Office and implement with regards the policies to all matters and the of SMS Safety, of the Health, Company; and Environmental Protection; viii. v. To To ensure monitor adequate all Safety resources and Pollution and shore-based Prevention support aspects are available of the operation and supplied of each ship; by the Company for the implementation of the SMS of the Company; vi. To report to the top Management all safety problems identified in the ix. To ensure full investigations of all accidents and dangerous occurrences reported, implementation of the SMS of the Company; and prepare periodic evaluation of such occurrences and present these to the vii. To ensure all the shore-based and ship-based staff understand, accept, and Management implement of the the policies Company; and the SMS of the Company; x. viii. To To monitor ensure and adequate record non-conformities resources and and shore-based deficiencies support identified are so available as to ensure and the supplied timely close-out by the Company of non-conformities the implementation and report them of the or system; any other problem of ix. the To implementation ensure full investigations of the SMS to the of all Management accidents of and the dangerous Company; occurrences reported, and prepare periodic evaluation of such occurrences and present these to the Management of the Company; 24

29 xi. x. To To monitor whether and record corrective non-conformities and preventive and actions deficiencies are correctly identified applied so as and to verify ensure effectiveness the timely close-out of such actions; of non-conformities and report them or any other problem of the implementation of the SMS to the Management of the xii. To periodically analyze all audit results and present the findings to the Company; Management of the Company; xi. To monitor whether corrective and preventive actions are correctly applied xiii. To and improve verify effectiveness the SMS of the of Company; such actions; xiv. xii. To To organize periodically and analyze coordinate all the audit Management results and Review present Meetings, the findings prepare to the agenda, Management and keep of the minutes Company; during the meetings; xv. xiii. To To monitor improve regulatory the SMS of and the practical Company; developments in matters of safety, health xiv. and To organize environmental and coordinate protection the for Management timely implementation Review Meetings, by the Company; prepare the xvi. To agenda, prepare and the keep schedules minutes for during drills and the meetings; internal audits according to documented xv. procedures To monitor and regulatory ensure that and practical responsible developments parties are notified in matters in advance; of safety, health and environmental protection for timely implementation by the Company; xvii. To supervise the program of Internal and External Audits within the office xvi. To prepare the schedules for drills and internal audits according to and onboard all vessels, to monitor the timely implementation of all drills and documented procedures and ensure that responsible parties are notified in audits advance; of the Company and the vessels and to ensure that audit results are xvii. reported To supervise to the the Management program of of Internal the Company; & External Audits within the office and xviii. To onboard ensure all that vessels, the to controlled monitor documents the timely implementation of the Company of all are drills properly and approved audits of and the authorized Company and prior the to issue; vessels and to ensure that audit results are reported to the Management of the Company; xix. To carry out revisions and amendments to controlled documents; xviii. To ensure that the controlled documents of the Company are properly xx. To approved organize and/or authorized monitor distribution prior to issue; of the controlled documents of the xix. Company; To carry out revisions and amendments to controlled documents; xxi. xx. To To monitor organize all and the reporting monitor requirements distribution of of the the controlled SMS for the documents vessels. of the Company; The xxi. Emergency To monitor Response all the Team reporting is comprised requirements of the CEO, of the CFO, SMS COO, for the DPA ships. the Operations Manager, the MS&Q Manager, the Technical Manager, the Insurance Manager and the Legal Manager and convenes in case of emergency so as to intervene immediately and The protect Emergency the vessel, Response the crew, Team the is cargo, comprised the charterers of the CEO, and CFO, any COO, other DPA party the Operations involved in Manager, the MS&Q Manager, the Technical Manager, the Insurance Manager and the the operation of the vessel. The team coordinates the interaction of the departments Legal Manager and convenes in case of emergency so as to intervene immediately and and liaises with insurers, authorities, the classification society, flag state, lawyers, protect the vessel, the crew, the cargo, the charterers and any other party involved in surveyors, experts and any other third party, as the case may be, so as to overcome any the operation of the vessel. The team coordinates the interaction of the departments and emergency liaises or with incident insurers, involving authorities, a managed the vessel. classification society, lawyers, surveyors, experts and any other third party, as the case may be, so as to overcome any emergency or incident involving a managed vessel. 25

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33 6. Technical Department The Technical department is responsible for monitoring and advising both deck and The Technical department is responsible for monitoring and advising both deck and engine engine crew in order to maintain the main engine, auxiliary machineries and electrical crew in order to maintain the main engine, auxiliary machineries and electrical equipment equipment of the vessels in satisfactory working condition, so that the vessels are always of the vessels in satisfactory working condition, so that the vessels are always seaworthy seaworthy and able to perform their main function of carrying goods safely and costefficiently while minimizing the cases where the vessels are not available for operation and able to perform their main function of carrying goods safely and cost-efficiently while minimizing (off-hire). Due the cases to the where tough the schedule vessels are of Container not available vessels, for operation time required (off-hire). for Due deck, to gear the tough and cargo schedule hold of maintenance container ships, is challenging time required and for therefore deck, gear it is and usually cargo carried hold maintenance out during is dry challenging dock or special and therefore survey. it is usually carried out during dry dock or special survey. In particular, the Technical department coordinates and has responsibility for the In particular, the Technical department coordinates and has responsibility for the following areas: following areas: i. Ensuring compliance with National and International legislation, industry standards as well as with Company s policies and procedures; i. Ensuring compliance with National and International legislation, industry standards as well as with Company s policies and procedures; ii. Planning required maintenance of machineries and carrying them out promptly ii. iii. iii. iv. iv. and efficiently. This is directly affected by the time available for maintenance as Planning required maintenance of machineries and carrying them out well as spare parts availability; promptly and efficiently. This is directly affected by the time available for maintenance as well as spare parts availability; Monitoring the efficiency of the vessels fuel and lube oil consumptions and analyse Monitoring the operational the efficiency performance of the vessels in order fuel to and further lube improve oil consumptions and minimize and adverse analyse variances, the operational always in cooperation performance with in the order Operations to further department; improve and minimize adverse variances, always in cooperation with the Operations Vetting department; the technical condition of second-hand vessels which are candidates for coming under the management of Contships Management; Vetting the technical condition of second-hand vessels which are candidates v. Assessing for coming and under amending the management the technical of specifications Contships Management; of the new-build vessels, approving their plan, and following up on their construction and delivery; v. Assessing and amending the technical specifications of the new-build vi. Monitoring vessels, all approving the classification their plan, certificates and following of the vessels, up on their arranging construction and planning and delivery; surveys in order to re-issue and renew the relevant certificates that are due to expire. vi. Monitoring all the classification certificates of the ships, arranging and Every Technical Manager is responsible for a number of container vessels. Some of the planning surveys in order to re-issue and renew the relevant certificates that responsibilities of the Technical department are shared with the MS&Q department, are due to expire. in particular for issues associated with safety certificates and safety awareness of the vessel and the crew. 29

34 Every Specifically, Technical the Manager responsibilities is responsible of the Technical for a number Managers of container include: vessels. Some of the responsibilities of the Technical department are shared with the MS&Q department, in particular i. Communicating for issues associated and dealing with with safety issues certificates of repairs and or replacements safety awareness (i.e. problems of the vessel and with the hull crew. and machinery), spare parts, and with the renewal of certificates for each vessel. They are responsible for reviewing and analyzing data received Specifically, from the the responsibilities Chief Engineer of and the his Technical team. This Managers enables include: the identification of potential technical issues which require further attention, such as cleaning the hull and propeller, increased fuel and lubricant consumptions, etc; i. Communicating and dealing with issues of repairs or replacements (i.e. ii. problems with hull and/or machinery), spare parts, and with the renewal of Attending to the onboard surveys from Classification Societies for both hull and certificates for each vessel. They are responsible for reviewing and analyzing machinery data received condition from inspections the Chief and Engineer for procedures and his like team. ISM. This Discussing enables with the attending identification class surveyors of potential possible technical solutions issues for which identified require issues. further Major attention, repairs and such modifications as cleaning should the hull be discussed and propeller, and approved increased by fuel the and Classification lubricant Societies. consumptions, The latter etc; is a pre-requisite in order to maintain the trading certificates and insurance policy of the vessels; ii. Attending to the onboard surveys from Classification Societies for both hull iii. Participating and machinery condition seminars inspections to inform and officers for procedures about regulatory like ISM. Discussing updates, experience with attending gained, class major surveyors incidents possible and break-downs, solutions for procedure identified amendments, issues. Major industry repairs trends, and etc; modifications should be discussed and approved by the Classification Societies. The latter is a pre-requisite in order to maintain the trading certificates and insurance policy of the vessels; iv. Performing internal audits and assessing the condition of the vessels through visits at least biannually and being on-site in emergency situations; iii. Participating in seminars to inform officers about regulatory updates, experience gained, major incidents and break-downs, procedure v. Preparing amendments, and monitoring industry trends, the budget etc; and the schedule of the repairs carried out during the dry docking or afloat. Comparing cost analysis from various iv. shipyards Performing and internal suppliers, audits evaluating and assessing the quality the condition of services of and the vessels the spare through parts offered visits at and least cross-checking biannually and with being the on-site attending emergency Superintendent situations; Engineers that works are carried out according to the agreements. In the event that works are v. not Preparing carried out and as monitoring agreed or the budget supplied and spare the schedule parts are of found the repairs defective carried and fail out during during operation, the dry the docking Technical or afloat. Managers Comparing must prepare cost analysis and draw from up various claims against shipyards shipyards and suppliers, and suppliers evaluating cooperation the quality with of the services Legal and department; the spare parts offered and cross-checking with the attending Superintendent Engineers that works are carried out according to the agreements. In the event that works vi. Co-operating with the Legal department in gathering evidence and all are not carried out as agreed or the supplied spare parts are found defective necessary items in order to draw up claims and recover repair expenses from and fail during operation, the Technical Managers must prepare and draw up insurance companies; claims against shipyards and suppliers in cooperation with the Legal department; vii. Advising on issues regarding engine performance and review. Preparing crew vi. appraisal Co-operating for both with deck the and Legal engine departments; in gathering evidence and all necessary items in order to draw up claims and recover repair expenses from insurance companies; 30

35 Planned Maintenance System (PMS) team being a division of the Technical department reports to the Technical Manager. This system is put in place so as to improve the planning, scheduling, vii. Advising and reviewing on issues of the regarding maintenance engine intervals performance according and to the review. requirements Preparing of the manufacturers crew appraisal and the for Classification both deck Societies. and engine departments Planned Maintenance System (PMS) team being a division of the Technical department reports to the Technical Manager. This system is put in place so as to improve the planning, scheduling, and reviewing of the maintenance intervals according to the requirements of the manufacturers and the Classification Societies. The PMS team is responsible for creating and maintaining the PMS database on a Technical Control Application (TCA) according to the Company policy. They create new systems, sub-systems, and jobs as required, as well as check and review already existing jobs on TCA The for the PMS main team auxiliary is responsible machineries for creating and safety and items maintaining of the the vessels PMS according database to on the a maintenance Technical schedule Control Application of the manufacturers, (TCA) according the recommendations to the Company of policy. the Superintendent They create Engineers, new systems, and the sub-systems, Company policy. and jobs They as required, maintain as well a log as of check the and main review machineries already existing jobs on TCA for the main auxiliary machineries and safety items of the total running hours. They update the jobs performed as reported in VM-forms (vessel vessels according to the maintenance schedule of the manufacturers, the messages), reports of the Superintendent Engineers, or by shore-based technicians that recommendations of the Superintendent Engineers, and the Company policy. They visit the vessels for repairs. The team follows-up on the correspondence with the vessels in maintain a log of the main machineries total running hours. They update the jobs case performed of missing forms as or reported incorrect in input. VM-forms (vessel messages), reports of the Superintendent Engineers, or by shore-based technicians that visit the vessels for Contships repairs. Management s The team follows-up technical on superintendents the correspondence are well with trained the and vessels have in extensive case of experience missing in forms the technical or incorrect management input. of container vessels. Contships Management s technical superintendents are well trained and have extensive experience in the technical management of container vessels. 31

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37 Chartering Department 33

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39 7. Chartering Department The Chartering department is is responsible for the the chartering of of the the vessels ships under management, which involves: is achieved by: i. Fixing a vessel on period contract (time charter); i. Fixing a vessel on period contract (time charter); ii. ii. Charter Charter hire hire collection. collection. It is the duty of the Chartering department to ensure that employment provided for the ships vessels is is generating the the maximum possible revenue, always taking into consideration the position, position, the the size size and and the the specifications specifications of of each each vessel ship along along with with the the market market conditions. conditions. The department has the additional responsibility of negotiating and agreeing all charter The department has the additional responsibility of negotiating and agreeing all charter party terms and conditions of all fixtures concluded, when necessary requesting the support party terms of other and departments conditions of (i.e. all Operations fixtures concluded, which links when Chartering necessary with requesting other support the departments). support of other The departments Operations (i.e. department Operations plays which a key links role Chartering for Chartering, with other as support service offered departments). to clients The is Operations not only the department ship but also plays its smooth a key role and for cost Chartering, effective operation. as the service offered to clients is not only the vessel but also its smooth and cost effective operation. A number of container vessels are allocated to each in-house broker. The expertise of the A number brokers of is container not limited vessels to specific are allocated geographical to each regions. in-house Brokers broker. continuously The expertise seek to of retrieve the brokers information is not limited and follow to specific closely geographical all market regions. Brokers continuously seek to retrieve information and follow closely all market regions. The Chartering department is also responsible for the charter hire collection. The charter hire The Chartering collection function department includes is also the responsible follow-up for and the handling charter hire of the collection. hire collection The charter and any hire other collection charter function party includes disputes the or claims. follow-up and handling of the hire collection and any other charter party disputes or claims. Contships Management s in-house brokers have: Good Contships knowledge Management s of the characteristics in-house brokers of the ships have: which they are responsible for i.e. TEU capacity (Twenty Foot Equivalent Unit), Deadweight ( Dwt ), reefer capacity, fuel consumption, Good knowledge speed, of the etc. characteristics of the vessels which they are responsible for i.e. TEU capacity (Twenty Foot Equivalent Unit), Deadweight ( Dwt ), reefer capacity, fuel i. Excellent marketing skills to successfully promote the ship; consumption, ii. The speed, ability etc. to assess and compare different trades on the basis of calculation of daily earnings, while taking into account the final destination of the vessel, i. Excellent marketing skills to successfully promote the vessel; duration of the charter and current market conditions; ii. The ability to assess and compare different trades on the basis of calculation iii. In depth understanding of charter parties and their clauses. of daily earnings, while taking into account the final destination of the vessel, duration of the charter and current market conditions; The iii. Chartering In depth department understanding also of provides charter guidelines parties and to their other clauses. departments, especially to the Operations and Legal departments regarding the policy of handling matters or disputes The Chartering related department to the performance also provides of various guidelines charters. to other departments, especially to the Operations and Legal departments regarding the policy of handling matters or disputes related to the performance of charters. 35

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41 Sale & Purchase Department 37

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43 & 8. Sale & Purchase Department The Sale & Purchase Manager is responsible for providing related services for the owners of the vessels under management and is fully involved in the sale and purchase process from seeking acquisition and sale opportunities to final documentation. Such services include: i. Monitoring the vessel sale and purchase market; ii. iii. iv. Maintaining a network of shipbrokers and direct clients; Scouting for market opportunities through contacts with sale and purchase brokers, ship-owners, shipyards, etc; Assessing and evaluating vessel values; v. Marketing vessels for sale; vi. vii. Managing relationships with sale and purchase channels i.e. competitive brokers and banks; Negotiating sale and purchase transactions; viii. Administering and documenting sale and purchase contracts (MOAs). The Sale & Purchase Manager has in-depth knowledge of standard MOA forms such as BIMCO s Saleform 2012 and earlier versions. The Sale & Purchase Manager reports directly to the CEO. 39

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45 $ Finance Department 41

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47 9. 9. Finance Department The Finance department is is headed by the Chief Financial Officer (CFO) and is is responsible for for the the following functions: i. i. Implementing Implementing the the financial financial strategy strategy of of the the Company, company, evaluating evaluating the the capital capital requirements, maintaining relationships with banks, financial institutions, requirements, maintaining relationships with banks, financial institutions, investment funds and keeping up with developments in the capital markets, as investment well as supporting funds and keeping shareholders up with in developments shipping investment the capital decisions markets, and as well monitoring as supporting the shareholders development in shipping of policies, investment procedures decisions and monitoring supporting the information development systems of policies, of procedures the budgeting, and supporting accounting information and financial systems risk of management functions; the budgeting, accounting and financial risk management functions; ii. Executing financial reporting that is reporting to management, shareholders, ii. Executing financial reporting that is reporting to management, shareholders, financial institutions and authorities. The reports of the Finance department financial include, institutions among other and authorities. things, valuation The reports and of investment the Finance analysis department for include, vessels, among performance other things, analysis valuation of financial and results, investment etc; analysis for vessels, performance analysis of financial results, etc; iii. Carrying out treasury and financial risk management, providing guidance to iii. Carrying the Accounting out treasury department and financial on cash risk management, negotiating providing and guidance procuring to financing for new projects, monitoring financial risk areas and implementing the Accounting department on cash management, negotiating and procuring the hedging strategy of the Company; financing for new projects, monitoring financial risk areas and implementing the iv. hedging Carrying strategy out the of the budgeting Company; process which includes interpreting budget guidelines from shareholders, assisting departments to prepare the annual iv. Carrying budgets, out preparing the budgeting and process monitoring which the includes performance interpreting of budgeted guidelines figures from versus shareholders, actual results, assisting following-up departments on significant to prepare variances the and annual recommending budgets, preparing improvements and monitoring and revisions the to performance the budgets; of budgeted figures versus actual results, following-up on significant variances and recommending improvements v. Overseeing the Accounting department in the preparation of the financial and statements, making revisions encouraging to the budgets; departmental improvement initiatives, monitoring accounting policies, recommending and approving the financial statements v. Overseeing and liaising the with Accounting the auditors; department in the preparation of the financial statements, encouraging departmental improvement initiatives, monitoring vi. accounting Implementing policies, tax recommending strategy which and includes approving tax the planning financial and statements management, and including keeping up-to-date with international and local shipping tax related liaising with the auditors; aspects, adhering to tax regulations, monitoring and implementing the tax vi. Implementing strategy of the tax Company; strategy which includes tax planning and management, including keeping up-to-date with international and local shipping tax related vii. aspects, Compliance adhering with to the tax provisions regulations, of the monitoring loan agreements and implementing and other financing the tax strategy documentation. of the Company; vii. Compliance with the provisions of the loan agreements and other financing documentation. 43

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49 Accounting Department 45

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51 10. Accounting Department The Accounting department provides accounting services to the ship-owning companies The Accounting department provides accounting services to the ship-owning companies and maintains the books of the Company, in accordance with accounting standards and maintains the books of the Company, in accordance with accounting standards applied in the shipping industry. The major business functions which determine the applied in the shipping industry. The major business functions of the Accounting structure of the Accounting department are the following: department are the following: i. Purchases and Payables; i. Purchases and Payables; ii. ii. Revenue Revenue and and Receivables; Receivables; iii. iii. Property Property and and Equipment; iv. iv. Payroll; Payroll; v. Inventory; v. Inventory; vi. Treasury Operations; vi. Treasury Operations; vii. Banks Reconciliation; viii. vii. Loan Banks Administration; Reconciliation; ix. viii. Taxes Loan and Administration; Contributions; x. ix. Masters Taxes General and Contributions; Account ( MGA ); xi. Financial Statements; x. Masters General Account ( MGA ); xii. Greek Law 89/1967 Books. xi. Financial Statements; Under xii. the provisions Greek Law 89/1967 of the Law Books. 89/1967 and other related laws, ship management companies and ship-owning companies operate under a specific fiscal framework of the Under tonnage the tax provisions system and of the the income-tax Law 89/1967 exemption and other regime. related laws, ship management companies The Accounting and ship-owning department companies is responsible operate for under the processing a specific of fiscal worldwide framework economic of the tonnage transactions tax system expressed and the in income-tax various currencies, exemption depending regime. on the country where the transaction took place. The base currency of the book keeping and reporting is the US Dollar, however other currencies may be used. The Accounting department is responsible for the processing of worldwide economic transactions expressed in various currencies, depending on the country where the transaction The main source took place. of income The base of the currency ship-owning of the book companies keeping is and the reporting charter hire is the from US Dollar, shipping however transportation, other currencies as well may as be other used. income deriving from the charter parties executed between the charterer and the ship-owning company. Expenses related to the operation of the vessels include marine personnel wages and contributions, The main source of income of the ship-owning companies is the charter hire from insurance expenses, repairs and maintenance, consumable, supplies and spares. shipping transportation, as well as other income deriving from the charter parties executed between the charterer and the ship-owning company. Expenses related to the operation of the vessels include marine personnel wages and contributions, insurance expenses, repairs and maintenance, consumable, stores and spares. 47

52 The income of the ship management company is the management fee which is charged to the ship-owning companies on a monthly basis. Expenses related to the operation of the ship management company include personnel wages and contributions, building expenses, telecommunication expenses, general administrative expenses, etc. The income of the ship management company is the management fee which is charged The Accounting department is also responsible for the preparation of the financial to the ship-owning companies on a monthly basis. Expenses related to the operation of statements of the vessels under management on a monthly, quarterly or annual basis. the ship management company include personnel wages and contributions, building The monthly and quarterly reports are produced for internal management purposes expenses, telecommunication expenses, general administrative expenses, etc. and for the shareholders of the ship-owning companies and the annual financial statements are produced for the shareholders and financial institutions including banks. The Accounting department is also responsible for the preparation of the financial Annual financial statements are usually audited by one of the major auditing firms. statements of the vessels under management on a monthly, quarterly or annual basis. The Accounting department provides assistance to the auditors. The monthly and quarterly reports are produced for internal management purposes and for the shareholders of the ship-owning companies and the annual financial statements The Accounting department also provides a reconciliation of the charter results are produced for the shareholders and financial institutions including banks. Annual produced by the Chartering department which calculates the operating profit of the financial statements are usually audited by one of the major auditing firms. The Accounting vessels per department charter, which provides equals assistance the gross to the income auditors. of each charter reduced by the owners expenses (i.e. commissions, bunkers and port disbursements for owners account) and by the running expenses (i.e. crew wages, insurance premiums, repairs, The Accounting department also provides a reconciliation of the charter results maintenance, certificates, stores, spares, etc.) related to each charter. produced by the Chartering department which calculates the operating profit of the vessels per charter, which equals the gross income of each charter reduced by the The Accounting department is also responsible for the payroll and all other compensation owners expenses (i.e. commissions, bunkers and port disbursements for owners matters. account) and by the running expenses (i.e. crew wages, insurance premiums, repairs, maintenance, certificates, stores, spares, etc.) related to each charter. In terms of compliance with the provisions of Law 89/1967 and the other related laws and regulations, the Accounting department reports the financial transactions The Accounting department is also responsible for coordinating on a regular basis, along performed by the Company in Greece in the Income and Expenses Book. This with the payroll, all practical compensation matters. accounting book shows the USD/EUR currency conversions and the expenses that are incurred in Greece, being either administrative expenses of Contships Management or In terms of compliance with the provisions of Law 89/1967 and the other related laws operating expenses of the vessels such as spares supplied or services rendered to vessels and regulations, the Accounting department reports the financial transactions by Greek suppliers at Greek ports. performed by the Company in Greece in the Income and Expenses Book. This accounting book shows the USD/EUR currency conversions and the expenses that occurred in Greece, being either administrative expenses of Contships Management or operating expenses of the vessels such as spares supplied or services rendered to vessels by Greek suppliers at Greek ports. 48

53 Legal Department 49

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55 Legal Department The lawyers of the Company provide legal advice and deal often in collaboration with The external lawyers lawyers, of the with Company legal matters provide related legal advice to the and activities deal often of the in collaboration ship management with external company lawyers, and the with vessels legal under matters management. related to They the activities handle disputes, of the ship claims management and other company issues associated and the with vessels contracts under i.e. management. freight, demurrage They handle defense, disputes, Bills claims of Lading, and other salepurchase associated agreements with (MOA contracts and i.e. with freight, accidents demurrage and other and incidents defense, that Bills require of Lading, legal issues sale-purchase handling such agreements as collisions, (MOA) general and average, with accidents salvage, and arrests, other incidents loss of cargo, that require labour legal disputes, handling injuries such and as any collisions, other dispute, general claim average, or issue. salvage, Contractual arrests, loss disputes of cargo, are usually labour disputes, governed injuries by English and law any and other referred dispute, to claim Arbitration or issue. Tribunals Contractual in London. disputes The are lawyers usually of governed the Company by English maintain law and relationships referred to with Arbitration major national Tribunals and in international London. The lawyers firms, of the with Company insurers maintain and with relationships technical experts. with major national and international law firms, with insurers and with technical experts. The lawyers of the Company also deal with ship financing, corporate matters, tax The matters lawyers and of any the other Company legal matter also deal and with court ship case financing, or administrative corporate matters, proceeding tax brought matters and in Greece any other or any legal other matter country. and If court needed, case the or administrative lawyers of the proceeding Company also brought provide in Greece advice or to any the other departments country. If of needed, the Company. the lawyers The of Company the Company lawyers also also provide assist advice the to Insurance the departments Manager in of dealing the Company. with insurance The Company related lawyers matter. also assist the Insurance Manager in dealing with any insurance related matter. The lawyers of the Company rely on information and records provided by all the The departments lawyers of involved. the Company rely on information and records provided by all the departments involved. In some cases the lawyers require the active participation and assistance of employees In or some seamen cases who the need lawyers to provide require written the active statements participation or testify and before assistance a court, of employees or procure or expert seamen reports, who or need review to provide documentation written statements produced by or counterparties testify before or a court, opponents. or procure expert reports, or review documentation produced by counterparties or opponents. The Legal department is responsible for administering the corporate documents and the The relevant Legal corporate department certificates is responsible of the for ship-owning administering companies the corporate of the vessels documents managed and the by relevant the Company. corporate In this certificates respect, of the the lawyers ship-owning of the Company companies draft of the minutes vessels of the managed board by of the directors Company. and the In this general respect, meeting the of lawyers shareholders of the Company sometimes draft assisted minutes by external of the board lawyers. of directors and the general meeting of shareholders sometimes assisted by external lawyers. The vessels are owned by separate companies which are registered either in the The Marshall vessels Islands, are owned Malta, by Cyprus separate or companies any other which jurisdiction. are registered The vessels either may in the fly Marshall the flag Islands, belonging Malta, to the Cyprus country or any of registry other jurisdiction. of the ship-owning The vessels Company may fly or the any flag other belonging country, to the subject country to the of limitations registry of that the ship-owning the country of Company registration or any may other impose. country, As far subject as the vessel to the limitations is concerned, that the ship-owning country of registration company is may taxed impose. in the As country far as of the the vessel flag is of concerned, the vessel. the ship-owning company is taxed in the country of the flag of the vessel. 51

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57 Insurance Department 53

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59 12. Insurance Department The Insurance department is responsible for insuring the ships against risks that might The Insurance department is responsible for insuring the vessels against risks that might cause damage, costs, expenses and delays to the vessels or may give rise to liabilities for cause the ship-owners damage, costs, and expenses the Company. and delays The to department the vessels or primarily may give handles rise to liabilities the following for the ship-owners insurances: and the Company. The department primarily handles the following insurances: i. Protection and Indemnity (Ρ&Ι): i. Protection and Indemnity (Ρ&Ι): a. Compensates the members of P&I clubs i.e. associations of ship-owners, for a. Compensates the members of P&I clubs i.e. associations of ship-owners, for expenses expenses incurred incurred in respect in respect to third to party third liabilities party liabilities such as cargo such shortages, as cargo shortages, injuries to crew, injuries cost to of crew, repairs cost for of damages repairs to for docks damages or to floating to docks objects, or to floating damage objects, to other damage ships, pollution to other and ships, damage pollution of cargo; and damage of cargo; b. b. Freight Demurrage and Defense (FD&D) cover to to reimburse the the members members for for defense costs costs including including legal legal fees, fees, experts experts fees etc. fees required etc. required to defend to defend a legal a claim legal against claim against them; them; ii. Hull and Machinery (H&M) insurance: ii. Hull and Insures Machinery the vessel (H&M) for insurance: damage to its hull, machinery and equipment caused by certain risks, excluding natural wear and tear. H&M insurance is Insures the vessel for damage to its hull, machinery and equipment caused by usually placed through one or more insurance brokers by allocating a certain risks, excluding natural wear and tear. H&M insurance is usually placed percentage of the fleet to each of them, so as to achieve the most through one or more insurance brokers by allocating a percentage of the fleet optimum premiums. Each broker contacts numerous reputable insurance to each of them, so as to achieve the most optimum premiums. Each broker companies or Lloyd s Underwriters, requesting them to underwrite part of contacts the fleet. numerous In the event reputable of a insurance claim, the companies underwriter or Lloyd s holding Underwriters, the largest requesting percentage them of the to insurance underwrite of part the of respective the fleet. In vessel the event is usually of a known claim, the as underwriter the leading holding underwriter the largest and percentage is responsible of the for insurance performing of the surveys respective and vessel taking decisions usually known with regards as the to leading claims; underwriter and is responsible for iii. War performing risks: surveys and taking decisions with regards to claims; Insures the vessels for any damages caused to the ship s hull, machinery iii. War risks: and equipment as a result of war and war-like situations. Further, the Insures department the vessels may arrange for any damages additional caused insurance to the for vessel s loss of hull, hire machinery cover due and to war risks, depending on the circumstances. This insurance is usually equipment as a result of war and war-like situations. Further, the department provided by the Hellenic Mutual War Risks Association. may arrange additional insurance for loss of hire cover due to war risks, depending on the circumstances. This insurance is usually provided by the Overall, the Insurance Hellenic Mutual department War Risks takes Association. steps to defend, in cooperation with the claims handlers and the insurers, any claim of the above nature, whenever it occurs. It also arranges the collection of compensation for claims under the insurance policies, Overall, the Insurance department takes steps to defend, in cooperation with the from the insurers with the assistance of the Legal Department. claims handlers and the insurers, any claim of the above nature, whenever it occurs. It also arranges the collection of compensation for claims under the insurance policies, from the insurers with the assistance of the Legal Department. 55

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61 Administration & HR Department 57

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63 & 13. Administration & HR Department The Human Resources of Contships Management is identified as the cornerstone of its The Human Resources of Contships Management is identified as the cornerstone of its corporate identity and success. The aim of the Administration and HR department is to effectively corporate identity and consistently and success. optimize The aim the of interaction the Administration of the shore-based and HR department personnel is and to the effectively achievement and consistently of individual optimize shore-based the interaction employee of the targets shore-based and the personnel fulfillment and the of corporate achievement objectives, of individual always shore-based within the employee framework targets of the and corporate the fulfillment culture of of Contships corporate Management. objectives, always within the framework of the corporate culture of Contships Management. The department is responsible for supporting shore-based personnel throughout their The department is responsible for supporting shore-based personnel throughout their employment as follows: employment as follows: i. Recruitment: Planning, organizing and supporting all recruitment projects by i. Recruitment: searching for Planning, a permanent organizing for a and temporary supporting employee; all recruitment projects by ii. searching Induction: for Establishing a permanent and or for continuously a temporary improving employee; the induction process, ii. Induction: ensuring Establishing a friendly, efficient and continuously and targeted improving introduction the induction of each process, new member ensuring a to friendly, the staff; efficient and targeted introduction of each new member to the staff; iii. Performance and Development Management: Establishing and maintaining a well-designed process, process, along along with with promoting promoting the culture the culture of continuous of continuous learning learning and development. This is one of the most challenging objectives of and development. This is one of the most challenging objectives of the department the department and is accomplished through annual performance evaluation and combined is accomplished with development-focused through annual performance career dialogues, evaluation continuous combined on the with job development-focused training and career development career dialogues, initiatives; continuous on the job training and career iv. development Employee initiatives; Administration Support: Handling on an ongoing basis, all iv. Employee employee Administration administration Support: related needs Handling including on an leave ongoing management, basis, all employee facilities administration management related related needs issues, including etc; leave management, facilities management v. related Internal issues, controls etc; audits and reports of the ERP system. v. Internal controls audits and reports. At the same time, the Administration and HR department is responsible for creating and maintaining communication channels, both internally and externally, that allows it to have At the at same all times time, an the updated Administration view of the and existing HR department workforce is profile responsible (roles, for responsibilities, creating and and maintaining mix of skills) communication in the Company channels, as well both as internally of the anticipated and externally, corporate that allows future it to needs. have Such at all times needs an result updated from view the of business the existing strategy workforce of the profile Company (roles, and responsibilities, from the evolving and mix market conditions both in the shipping industry and in the local and global labor market of skills) in the Company as well as of the anticipated corporate future needs. Such needs in general. result from the business strategy of the Company and from the evolving market conditions both in the shipping industry and in the local and global labor market in general. 59

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65 Information Systems Department 61

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67 14. Information Systems Department The aim of the Information Systems department is to support the information systems of The aim of the Information Systems (IS) department is to support the information systems of the Company, as well as the systems of its managed fleet, with regards to daily the operations, Company, maintenance, as well as the software systems development of its managed and fleet, training. with regards to daily operations, maintenance, software development and training. Daily operations are supported by a number of services provided to end-users such as Daily operations are supported by a number of services provided to end-users such as , , backup and the intranet portal server. Maintenance services include software and backup and the intranet portal server. Maintenance services include software and hardware hardware installations and repairs. Software development includes both in-house and installations and repairs. Software development includes both in-house and off-the-shelf off-the-shelf computer application solutions, as well as collaborative efforts to develop computer systems such application as the solutions, unified ERP as well system, as collaborative which contains efforts many to develop modules systems being used such by as the many unified departments ERP system, (i.e. which Accounting, contains Operations, many modules Technical, being Chartering, used by many etc.) departments and support (i.e. departments Accounting, working Operations, together Technical, by integrating Chartering, processes etc.) and support and information departments flows. working The together training services by integrating refer to processes the introduction and information of current flows. systems The training to new shore services and refer vessel to the personnel introduction as well of as current new technologies systems to new such shore as business and vessel intelligence personnel and as the well support as new in technologies leveraging current such as services, business for intelligence instance, and document the support management in leveraging current the intranet services, portal for instance, server of document the Company. management in the intranet portal server of the Company. The Information Systems department is also responsible for shore-to-ship and ship-toshore communications between the Company and the vessels under its management. The Information Systems department is also responsible for shore-to-ship and ship-to-shore communications between the Company and the vessels under its management. This requires This requires negotiating satellite tele-communication rates, as well as monitoring and negotiating satellite tele-communication rates, as well as monitoring and checking invoices. checking invoices. Overall, the IS department promotes the use of technology so as to improve and optimize Overall, the IS department promotes the use of technology so as to improve and operational tasks and decision making. optimize operational tasks and decision making. The Information Systems department is also responsible for the training and the familiarization The Information of the Systems shore-based department staff with is the also ERP responsible system of the for Company the training including and audits the and familiarization the preparation of the of reports shore-based related staff to the with performance the ERP system of the ERP of the system. Company including audits and the preparation of reports related to the performance of the ERP system. 63

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69 Protect the Environment