We are proud to offer a comprehensive ship management system a unique tool and solution to avoid economic crisis for the financial institutes to avoid ship’s juridical seizing, layup costs and juridical forced sale process and keep the maintain the capital investment productive through ship’s operation effectively.
- INTRODUCTION
In today’s fragile financial market, sometime the financial institutes are left with no choice but juridical seizer of ships and keep the units in layup status at various port(s) around the world causing additional burden to the engaged investment as well as depreciation of the assets due to layup status.
The subject proposal is for management and operation of ships suffering with economic crises, to maintain asset value, by keeping the ships trading condition instead of juridical seizer and layup until juridical and/or forced sale.
In order to turn such stale state into profit, we propose the FORCE MANAGEMENT SYSTEM “FMS” (Forced Technical & Commercial Management of ships) with strategy, management approach, operation and organization.
This dynamic project to be continuously reviewed in discussions among maritime legal advisor(s) and financing institution.
- DEFINITION
The project is:-
2.1 To keep ships operational and financially profitable & avoid laying up because of possible seizure by financial institution due to borrowers default, to avoid further cost(s) for entire juridical seizer, layup, layup port +Watchmen expenses, juridical and/or forced sale process etc.
- To avoid any calamity and/or marine unpleasant incident due to very limited capabilities of few watchmen on board during layup period.
- To avoid depreciation of assets due to quick forced sale and layup/non-operational vessel.
- VISION
To turn the dormant period and entire process of juridical seizing, layup, and juridical selling with huge costs into profit or at least save the additional costs (losses).
- SCOPE OF PROJECT
FMS project benefit the financial institute in four folds:
- To upgrade or maintain the capital investment.
- To maintain ship technically thus maintain value of ship.
- To maintain ship’s status commercially thus maintain market shares.
- To gain financial profits.
- OBJECTIVES
The construction and maintenance of FMS benefit substantially offering opportunities for collaboration and integration that positively impact the execution of the project and, more importantly, maintain ship status up to date FMS continuously support required upgrading to the ship(s) & other’s operation, ensure compatibility, accelerate progress.
Additional benefits may arise from close interaction with the ship trading markets and as well as provided below:
- Maintaining asset values for stock markets & resale.
- Keep investment in safe financial status.
- Allow financial securities to continue trading (in healthy status) in stock exchanges.
- Trading profits from the ship operations.
- Take advantage of emerging regulations for ship maintenance
- Long term goals
- OUR STRATEGY
Applying diverse despite relatively basic strategic framework to offer superior value of ship management services with continues performance analyse for the achievement of best performance.
Our execution strategy incorporates methodology, qualified personnel, and a highly responsive approach to day to day operation achieving best results.
Strategic framework for FMS contains:
- Productivity to increase revenue by continues employment of the ship(s).
- Productivity to increase profit margins through strong negotiations.
- Strict continues follow up of ships to ensure the best performances and results.
- Productivity to increase or maintain market shares.
- Transfer of information to clients/financial institute regularly.
- Assist financial institute to use information for more valuable assets.
- Alert and agile management.
- Obtain and analyse information to match or exceed expectations.
- Diligently maintained services.
- Careful work process in loyalty.
- ADVANTAGES OF “FMS”
- Develop profits instead of expenses (loses)
- Prevent depreciation of the ships
- Prevention from possible environmental threats
- Maintain update certification
- Maintain vessels physical & technical status
- Maintain Insurance covers being operative unit
- Maintain rapidly changing international rules where applied
- Steady & continuous maintenance (ISM, ISPS, MLC,etc)
- Keep update information system
- Maintain upgrades
- Cost effective measures and Maintenance
- Prompt & quick integration with any required maritime affairs
- “FMS” Project Management
SAAM Ship Management’s dedication to quality brings economic advantages to its clients, In particular the company’s adherence to stringent quality management systems and professional integrity means that the long term interest of clients.
Briefly we are proud to say that our team is highly educated and well experienced in the shipping industry, working simultaneously in traditional shipping and trade as well as the latest information technology.
We are well adopted in both Eastern & western culture of work.
- OUR SERVICES
The SAAN Ship Management provides a wide range of services to its principals such as Technical, Commercial and Operational Management, including, Trends Analysis, and Risk Management tools to ensure the foll:
- Running the vessels always “safety first” manners.
- Maintaining the vessels at highest standards.
- Minimizing technical and operational issues.
- Keep running costs efficient and within cost effected budget.
- Avoid any possible extent off-hires and delays.
Our 24/7 Management services model is as below:
- Technical Management
- safety and environmental management.
- optimization of ships’ performance
- maintenance and planning
- inspections, surveys and repairs
- supply of spare parts and provisions
- planned maintenance
- dockings
- ship budgeting
- Commercial Management
- chartering /pre fixing
- charter party drafting
- accounting, i.e. voyage estimations etc
- Invoicing hire/freight statements etc
- Operation Management
- voyage and navigational instructions and communication with the ship
- post-fixture follow up
- cost-efficient bunkering and lubes
- port agency dealings
- provision of spares parts and other items as necessary
- arranging on-hire/off-hire, cargo and other surveys and inspections
- Safety and Environmental management. (ISM/ISPS/MLC/Etc.)
- Quality System Management
- implementation and follow-up of various codes of IMO (ISM/ISPS/MLC/Etc.) and ISO
- Crew Management
- Insurance
- Hull and Machinery, etc.
- Protection and Indemnity
- Loss of Hire Insurance
- Crew Insurance
- War Risks Insurance
- Accounting and Book Keeping
- Shipping Agent
- Change of Flag and/or Class.
- Inspections and Audits
- Project Management
- MANAGEMENT STRUCTURE
Our “FMS” have company-wide integration among different departments.
- INSURANCE DURING “FMS” MANAGEMENT
Insurance cover shall be by first class Insurers and co-assurance coverage is preferred.
- SHIP OPERATIION BUDGET
The operating budget (OPEX) could be provided up on nomination of ship, after carrying-out a carefully inspection on board and checking the ships records in order to determinate the ship’s status and overall condition.
- ACCOUNTING
Our accounts department maintain the budget and financial records strictly with full transparency where the responsibilities associated with this task are assigned to the top professionals of field.
Monthly or quarterly financial reports will be provided for the purpose of close coordination and control.
- LEGAL RELATIONSHIP BETWEEN MANAGERS AND PRICIPALS
The tasks undertaken by the ship managers are of great importance for the ship management company itself but also for the principals (either financial institutes and/or registered ship owner – the borrowers) who is the client. As it can be easily understood, major responsibilities are created for both parties involved in this collaboration and in order to safeguard this commercial agreement a strong legal bond shall be applied. The legal relationship between the two parties is settled with the contract agreed and signed mutually.
- IMPLEMENTATION OF “FMS” AND APPOINTMENT OF THE MANAGERS
The appointment of Managers for the Forced Management of Ships is not a usual maritime practice due to the special circumstances.
However, we propose the below approaches for the appointment of managers under the Forced Management System “FMS” exercise:
- Negotiation with the registered owners of ship (the borrowers) and make them agree to sing the appointment of Managers for the full management of ship because of their failure of productive management financial breakdown etc.
- Negotiation with the registered owners of ship (the borrowers) and make them agree to sing appointment of Managers on the condition that the manager will take written consent of the registered owners for lenders interest and lenders benefits only.
- To run the ship in form of “Bareboat Charterparty”.
- SERVICES PROVIDED BY THE MANAGERS UNDER “FMS”
The managers under the Forced Management System “FMS’ will provide to its principal in general the services include crew management, technical management, commercial management, insurance arrangements, accounting services, supply of provisions, and provision of bunkers or services to be defined depending on form of contract to be agreed mutually.
The main tasks that arise for the manager from these services are:
- Maintain existing crew and/or select and engage appropriate crew for the vessel, complying fully with the flag of the vessel regulations in terms of nationality, qualifications and documentation and dealing with all the crew affairs.
- Arrange and provide maintenance, repairs, dry dockings, supply of spare parts and generally make sure that the vessel complies with class of the ship, the ISM code and other safety and quality regulations.
- Provide chartering services, “fixing” the vessel, prepare voyage estimations, arrange the commercial operations of the vessel and hand over to the principals the revenue generated by the ship’s operations.
- Arrange vessel’s insurance.
- Maintain and provide the financiers with all the data regarding costs and expenses, and furnish them with accounting reports in order to keep them update regarding financial conditions of asset(s).
- Supervision of the S&P procedure, if any takes place during the management agreement.
- Supply of provisions for the vessel and the crew and purchase of bunker fuels required.
- DUTIES AND OBLIGATION
The duties and obligations of the managers but also of the owners shall clearly define in the contract.
- CONCLUTION
The Forced Management System “FMS” is in benefit of all financial institutes and as well as their clients/members and/or shareholders.
We look forward to have a response and we are quite confident that we can meet the challenges ahead, and stand ready for satisfaction of our principals.
If you have questions on this proposal, feel free to contact us by email cptraza@saanship.gr or by phone at +306947350340 (PIC Cpt. Salim RAZA).
In anticipation for your interest.
Sincerely
SAAN SHIP MANAGEMENT S.A.
