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Cashflow

This document discusses strategies for preventing stowaways and procedures for dealing with stowaways discovered onboard a ship. It recommends tighter port security through restricted access to ships and container screening. Onboard, access points should be monitored, locked when not in use, and thorough searches conducted before departure. If found, stowaways should be reported to authorities and proper log entries made. The health and safety of any discovered stowaways remains a humanitarian concern until they can be removed from the ship.

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90 views5 pages

Cashflow

This document discusses strategies for preventing stowaways and procedures for dealing with stowaways discovered onboard a ship. It recommends tighter port security through restricted access to ships and container screening. Onboard, access points should be monitored, locked when not in use, and thorough searches conducted before departure. If found, stowaways should be reported to authorities and proper log entries made. The health and safety of any discovered stowaways remains a humanitarian concern until they can be removed from the ship.

Uploaded by

saif
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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CLO4

Cash flow & the art of Survival:


Every company faces the challenge of navigating its way through the succession of booms.
 During prosperous periods.
 In recessions the challenge
 What sorts out the winners from the losers is financial performance.

Crucial factors:
 Economies of scale
 Operational planning (increased productivity)
 Reducing backhauls
 Minimize time off hire
 Deadweight tonnage utilization
 Cutting cargo-handling time
IMPORTANT: Choice of ship, ship operation, financial strategy

Financial performance & investment strategy:


 The three key variables with which ship-owners can survive in the shipping market
are:
 The revenue received from chartering/operating the ship
 The cost of running the ship
 The method of financing the business

The classification of costs:


Three broad categories
1. Vessel’s cost
 Fuel consumption, number of crew, physical condition
2. The cost of bought in items
 Bunkers, consumables, crew wages, ship repairs, interest rates
3. Management efficiency
 Administrative overheads, operational efficiency

The classification of costs:


 Operating Costs, which constitute the expenses involved in the day to day running of
the ship- essentially those costs such as crew, stores and maintenance.
 Periodic maintenance costs are incurred when the ship is dry-docked for major
repairs, usually at the time of its special survey.
 Voyage costs are variable costs associated with a specific voyage and include items
as fuel, port charges and canal dues.
 Capital costs depend on the way the ship has been financed.
 Cargo handling costs represent the expense of loading, stowing and discharging
cargo (especially in liner trades).

Operating costs:
 Operating costs, are the ongoing expenses connected with the day to day running of
the vessel, repairs and maintenance.
 They account for about 46% of total costs.

Operating Costs components:


 Crew costs: include all direct & indirect charges incurred by the crewing of the vessel
including basic salaries and wages, social insurance, pensions, victuals and
repatriation expenses.
 Affected by size of the Crew, Vessel’s Flag State, Automation of mechanical
operations (engine & cargo handling)
 Early 1950: 40-50 members of crew per vessel – 1980: 28 members, 2014: 22-
25
 Stores & Consumables: Domestic items used aboard the vessel, lubricating oil.
 Repairs and maintenance:
 Routine maintenance needed to maintain the vessel to the standard required
by company policy & Classification Society.(engine, auxiliary equipment,
painting)
 mechanical failures: may result to additional costs
 spares: replacement parts for the engine or on –board machinery

Port Charges:

 Represent major component in voyage costs


 Fees levied against Vessel & Cargo for the use of facilities and services
 Volume of Cargo
 Weight of Cargo
 Gross dwt of vessel
 Net dwt of vessel
 Charging practices vary considerably from one area to another

Canal dues:
 The main canal dues payable are:
 Suez Canal
 Panama Canal
 Suez canal fee:
 Calculated by the classification society
 Suez canal special tonnage certificate
 ((Gross dwt+Net dwt)/2)+10%
 Panama canal fee:
 A flat rate charge per net tonne

The capital Cost of the Ship:


 These obligations take three forms
1. There is the initial purchase and the obligation to pay the shipyard.
2. The periodic cash payments to banks or equity investors who put their money to
purchase the vessel
3. Cash received from the sale of the vessel (?)

Freight revenue:

 The basic revenue calculation


1. Determining how much cargo the vessel can curry in the financial period measured
in tons, tonmiles etc
2. Establishing what price or freight rate the ship owner will receive per unit
transported.
 The revenue per dwt can be viewed as the product of the vessel’s productivity

Optimizing the Operating Speed:

 When a vessel is earning unit freight revenue, the mean operating speed of the
vessel is important
 It determines the amount of cargo delivered during a fixed period and hence
the revenue earned.
 According to the levels of bunker costs and freight rates the ship-owner must decide
the operating speed of his vessel.
 It’s a trade off:

 High speed – low freights = losses


 High speed – High freight = gains
 Low speed – Low freights = gains
 Low speed – High freights = losses
CLO5

Stowaways:
A person who, at any port or place secretes himself in a ship without the consent of the ship
owner or master or any other person in charge of ship and who is onboard after that ship
has left that port or place.

The Convention on Facilitation of International Maritime Traffic, 1965, as amended, (The


FAL Convention), defines a stowaway as "A person who is secreted on a ship, or in cargo
which is subsequently loaded on the ship, without the consent of the ship-owner or the
Master or any other responsible person and who is detected on board the ship after it has
departed from a port, or in the cargo while unloading it in the port of arrival, and is reported
as a stowaway by the master to the appropriate authorities".

1. INITIAL RISK ASSESSMENT - The stages and thinking involved in the conduct of an
initial detailed risk assessment
2. THE LEGAL SITUATION - Covering in outline the requirement to consider the impact of
any security measures on the local laws and the legal implications.
3. SECURITY SURVEY - The next stage is a detailed survey using the findings of the Risk
Assessment as its baseline. This will include the conduct of a survey, the subject areas
covered and the preparation of a report, including conclusions and recommendations.
4. THE PRINCIPLE OF LAYERED PROTECTIVE MEASURES - Why the principle of
building layers of protection is the fundamental feature of a totally integrated system and that
this principle can equally be applied to cargo and passenger handling facilities.
5. PERIMETER PROTECTION INCLUDING DESIGNATED RESTRICTED AREAS -
Detailing the absolute requirements for the use of visible perimeter fences, boundaries and
the correct designation of the areas to be protected, using control of access and designated
Restricted Areas
. 6. CONTROL OF ACCESS - Covering the need for the control of access to facilities and
specific areas and how these controls can be efficiently and sensibly implemented, without
disrupting the commercial function of the vessel.
7. TECHNICAL MEASURES - The use of technical measures in support of the protection of
the vessel. 8. SECURITY PERSONNEL - The selection, recruitment, training and utilization
of personnel.
9. IDENTIFICATION - The identification of employees and visitors covering cargo and non-
cargo facilities.
10. THE VESSEL SECURITY AND CONTINGENCY PLAN - A description of the
contents of a comprehensive plan covering the aspects mentioned above and incident
response.
How to prevent:
➢ Tighter port security and greater vigilance by ship.
➢ By port authorities:
➢ Restrict to few people who have access to ships
➢ Steps to prevent stowaway hiding inside container.
➢ Some port uses sniffer dogs and human occupancy detector (inside

On board:
a) Minimum or only one access to ship and effective gangway watch maintained all the times
b) Person with identity should always be checked and unauthorized persons refused access
c) Gangway to be raised during period of non use
d) All store rooms, mast houses, entrance to accommodation (except only one entrance to
accommodation) should be locked in accordance with fire and safety regulations
e) Cargo work if not 24 hrs, access to hold should be checked at end of each working
periods, hatches closed, all accesses to cargo holds locked
f) Maintained deck watch all the times in port and anchorage especially stowaway is a
problem g) At port/anchorage in night:
h) Well lit deck and over-side area
i) Check mooring ropes and anchor cable regularly to deter stowaway to gain access
j) With reduced manning difficult to maintain 24 hrs watch, master to employ shore
watchmen
k) Shore watchmen from reputed company and arranged by ship‟s agent and P& I
correspondent l) Master to display incorrect information on sailing board

Stowaway searches:
1. To carry out immediately prior departure
2. As per company instructions
3. Subdivide v/l into several area e.g. accommodation, engine room, main deck and Cargo
compartments and delegate responsibility for searching area to specified crew members
4. Each area should be searched systematically and simultaneously, (cargo holds, Containers,
store rooms, funnel casings, chain lockers, cabins, crane cab, mast houses, e/r bilges etc.)
5. Checklist to be used for such searches
6. If stowaway found, immigration authorities to be advised in order to remove from ship
7. River passage area prior disembarking pilot or if waiting for port clearance at anchorage
carry out second search 8. Make necessary arrangements to get rid of stowaway after
discovered

Log book entries:


 Details of watch security arrangements at port
 Time, date and outcome of stowaway searches conducted by crew as per company
instructions

Discovered stowaway on board:


▪ Follow company guidelines
▪ Establish where more stowaway onboard
▪ Notify ship-owner and agent at next port of call
▪ Establish identity of each stowaway
▪ Establish documents stowaway has in his/her possession
▪ Humanitarian obligation to provide maintenance e.g. food, water, sleeping accommodation,
washing and toilet facility
▪ Not an easy situation onboard, as a physical danger to crew or infectious disease
▪ No matter whatever the situation to be treated humanely

Also establish following:


o Full name
o Nationality
o Postal and residential permanent or last address
o Date and place of birth o Name, date and place of birth of either or both parents or other
next of kin including their postal and residential address
o Details of any document found in stowaway‟s possession, such as passport, CDC or
identity card
o Stowaway not be socialize and become friendly with crew
o Never allow stowaway to escape in port as ship's officer(s) may be fined by immigration o
Do not allow stowaway on work o Proper logbook entries made for the period of stay of
stowaway

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