Project on Mgmt of Accounts in Shipping Industry With Reference to Fleet Management (1)

7/28/2019 Project on Mgmt of Accounts in Shipping Industry With Reference to Fleet Management (1)

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CHAPTER 1

EXECUTIVE SUMMARY

Fleet Management Limited, based in Hong Kong provides a comprehensive range of ship

management services to cargo ship owners worldwide. The company has at its disposal,

professional manpower, both ashore and at sea, operating to internationally recognized

quality management standards.

Fleet has a concise company policy and is committed to offering first class ship

management services with emphasis on safety, pollution prevention and to providing a high

standard of on board maintenance at a reasonable cost to owners. The company is accredited

ISO 9001, ISO 14001, OHSAS 18001 and ISM code compliance certificates from DNV.

Fleet recognizes the importance of first-rate crew in the successful operation of

its vessels and has established its own crewing offices in India (Mumbai, Delhi, Kochi,

Kolkata, Chennai, Vizag, Patna, Lucknow and Chandigarh), the Philippines (Manila) and

China (Dalian). In addition, our own crew and officers training institute in Mumbai provides

short term familiarization, refresher and basic safety courses to our staff. It also provides

complete bridge and engine simulation exercises to our seafarers.

Currently, we are responsible for the full technical management of more than 260 modern

ships, on behalf of reputable ship owners. The average age of our fleet is under 6 years.

Other essential operating services include commercial management, new-building

supervision, shipboard audits, superintendence and insurance.



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CHAPTER 2

INTRODUCTION TO INDIAN SHIPPING INDUSTRY

The Indian shipping Industry plays a crucial role in Indian economy. As 90% of the Nations

Trade by volume is done via sea. India has been the largest merchant shipping fleet among the

developing nations. The Indian Shipping Industry supports transportation of national and

international cargoes and also provides various other facilities such as ship building, ship

repairing, lighthouse facilities, freight forwarding, etc.

Indian Shipping Industry with emergence of globalisation and liberalisation is firmly ready

to acquire new dimensions in terms of demand and infrastructural development. In order to

sustain itself with the stiff competition posed by foreign companies, the Indian industry is

striving hard to bring about rapid transformation. Over the years the way cargo traffic was

handled has changed.

Initially it was by the protected environment by the tonnage committee who decided as to

what type and size of ships the companies should be given a chance. Government subsidy vessels

were only assured for the Cargo was assured. Recently after a long period of decline, both

tonnage and fleet size have grown, with the addition of ships - tugs, survey vessels, towing

vessels as well as pilot vessels belonging to ports and maritime boards.

There are as many as 55 shipping companies in the Industry, out of which 19 deal with

coastal trade and 29 are engaged in overseas trade. The rest operate in both types of trade. The

Indian Shipping industry is governed by 3 separate Acts such as The Merchant Shipping Act in

1958, The Inland Vessels Act in 1917 & The Coasting Vessels Act in 1838.



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Main segments in the Indian shipbuilding industry

Shipbuilding industry is mainly divided into the following:

- New Ship building yards – which is mainly active building commercial and defense vessel.

Commercial

Vessels are mainly built for European owners and Defense vessels are for Indian Navy

- Shipyards mainly build vessels for European owners

- Major yards are ABG shipyard, Bharati shipyard, Modest, Pipavav Shipyard, L&T Shipyard,

Cochin shipyard etc.

- Ship repairing – Indian ship repairing industry consists of around 7 ship repair units (SRU‟s)

namely Alcock

Ashdown & Co. Ltd, Chennai Port Trust, Hindustan Shipyard Ltd, Mumbai port trust, Cochin

Shipyard,

Garden Reach Shipbuilders and Mazagon Dock Ltd,

Indian shipping company Shipping Corporation of India (SCI) is to dramatically increase the size

of its fleet over.

The next decade. Most of the vessels are tankers - oil, product, chemical and gas, making up

roughly 70% of SCI's

Deadweight tonnage (DWT) - alongside a number of bulk tankers and container vessels. The

company has now announced a plan to acquire 110 vessels over the next 10 years at an estimated

cost of US$6.13bn, which would more than double the size of the company's flee



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CHAPTER 3

FLEET MANAGEMENT PROFILE

Background and Inception of the company:

Fleet management was established on May 1995 in HonKong. Fleet Management build the

finest commercial vessel small and medium sizes provide excellent service and always respond

to the needs of customers.

The primary function of Fleet Management is to provide ship owners with safe ship operation

and pollution prevention services, at the same time, ensuring optimum cost effective

performance. A great deal of emphasis is given to ship board maintenance by fully qualified and

efficient crew. To achieve this we have a well trained crew on board, qualified under STCW

Convention, backed up by very experienced and professional shore based staff. Various ship

involved in technical management:

General Cargo vessels

Multipurpose vessels

Cellular Container vessels

Capesize, Panamax, Handy size and Open hatch bulk carriers

Reefer vessels

Chemical Tankers

Gas Carriers

Product Tankers

Crude Oil Tankers / VLCC

Ro-Ro Vessels

Pure Car Carriers

Fleet management deliver the following new building vessels from shipyard:



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YEAR

OF

BUILD

TYPE OF VESSEL

1997One 45,000DWT open hatch bulk carrier from Polish yard and One 520,000 Cu.ft

Reefer vessel from Japanese yard.

1998 One 530,000 Cu.ft Reefer vessel from Japanese yard.

1999One 1000TEU Cellular Container vessel and One 12,000DWT Chemical tanker.

Both vessels from Japanese yards.

2000

One 1000 TEU Cellular Container vessel and One 19,500DWT Chemical Tanker

from Japanese yards and Three 1600TEU Cellular Container vessels from Korean

yards.

2001One 1600 TEU Cellular Container vessel from Korean yard and two 22, 000DWT

Chemical tankers from Japanese yard.

2002 One 12,500 DWT Chemical tanker from Japanese yard.

2003 One 12,500DWT Chemical tanker from Japanese yard.

One 19,500 DWT Chemical tanker from Japanese yard.

One 25,000 DWT Chemical tanker from Japanese yard.

2004 Two 25,000 DWT Chemical tankers from Japanese yard.

2005 Three 53,000 DWT Handymax Bulk Carriers from Chinese yard.

One 25,000 DWT Chemical Tanker from Japanese yard

2006 Two 8,500 DWT Chemical Tanker from Japanese yard.

Three 53,000 DWT Handymax Bulk Carrier from Chinese yard.

2007 Two 53,000 DWT Handymax Bulk Carriers from Chines yard.

Three Chemical Tankers from Japanese yards.

One Handymax Bulk Carriers from Vietnamese yard.



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2008

Two Handymax Bulk Carriers from Indonesian yard.

Nature of Business Carried:

The company is engaged in disposal, professional manpower, both ashore and at sea,

operating to internationally recognized quality management standards. It provides a

comprehensive range of ship management services to cargo ship owners worldwide.

It operates services include commercial management, new-building supervision,

shipboard audits, superintendence and insurance. The primary function of Fleet

Management is to provide ship owners with safe ship operation and pollution

prevention services, at the same time, ensuring optimum cost effective performance.

Hence, it is one of the leading shipping company in India.

VISION:To be recognized as a premier ship Management Company active in a number of specialized anddiverse shipping segments.

MISSION:To provide to a variety of customers, either directly or through Business Partners and Affiliated

companies, ship management services which are:

Reliable

Cost effective

Meeting or exceeding customer requirement

In accordance with all applicable quality, safety and environmental standards

Aimed at achieving zero incident and zero spill with continuous improvement.



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COMPANY POLICY:

1.

GENERAL:

The Company recognizes a fundamental duty to conduct its business in a socially,

environmentally and economically responsible manner which fosters safe and ethical behavior in

the office and onboard ships.

This requires commitment, competence, motivation and proper attitude of all individuals at all

levels within the Company.

.The Company recognizes that to achieve its objectives and targets it requires the following:

1. Adequate Human resources both ashore and afloat.

2. Operating procedures for ships and offices.

3. Proper and timely supplies of stores, spares.

4. Adequate financial resources.

2. MANAGEMENT COMMITMENT, AUTHORITY AND RESPONSIBILITY:

The Company's Managing Director and Senior Management are committed to its QHSE Policy

and have the responsibility to ensure the Company's policy is carried through to: Promote each

individual's personal involvement in maintaining high QHSE standards. Ensure necessary

procedures and work instructions are available, operative and effective for setting, reviewing and

meeting the Company‟s QHSE objectives and targets. Identify, report and record any

nonconformity or non-Compliance and take the necessary

Corrective and preventive action. Monitor, review, analyses and evaluate the



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3. OCCUPATIONAL HEALTH AND SAFETY

It is the Company‟s Policy to provide a safe and healthy workplace environment for shore based

and shipboard personnel and the Company is committed to:-Prevent loss of life, work-related

injury or illness by promoting safe and healthy practices and proper planning and execution of

operations.

Comply with applicable requirements that relate to Occupational Health and Safety (OH&S).

Establish its own standards and guidelines where existing laws and regulations are not adequate

to assure protection to human health and safety..

4. ENVIRONMENTAL

It is the Company‟s Policy to work towards a cleaner marine environment and the Company is

committed to:-

Firmly support the International Convention for the Prevention of Pollution from Ships

(MARPOL) and other environmental requirements and believing that the first line of defense

against pollution must be to avoid accidents occurring. Comply with applicable marine

environmental protection requirements established under International, Flag State, Port State and

Coastal State Laws including but not limited to the International Convention forth Prevention of

Pollution from Ships (MARPOL), concerning the use of Oily Water Separators, Oil Content

Meters, Incinerators and other Pollution Prevention Equipment.

5. ETHICS AND NON-RETALIATION:

It is the Company‟s Policy to ensure that all shore based and ship based personnel carry out their

duties in an ethical and honest manner ensuring that they exhibit the highest standards of

integrity and righteousness at all times. The Company is committed to:

Ensure that no shore based employee or personnel onboard ships under Management,

participates in any incentive or bonus programs based on minimizing operational costs associated

with the operation, maintenance, and repair of machinery space systems, equipment, and



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components without ensuring that efficiency and performance are maintained. The intent of this

is to ensure that staff do not avoid such costs and thereby sacrifice environmental compliance.

.

6. DRUG AND ALCOHOL:

The Company is committed to maintain a safe and healthy working environment free from the

unauthorized use of drugs and alcohol and has in place a policy which meets the standard of the

"OCIMF".

Alcohol may not be consumed within 4 hours of one's watch or duty.

The Master, Navigating Officer and the Chief Engineer must not drink alcohol within 4 hours of

sailing.

No crew member may be intoxicated while aboard a ship. Intoxication is defined as 0.04 pct. or

more blood alcohol content. Anyone showing signs of intoxication (Including the Master) may

be directed to be tested.

7. PERSONNEL:

The Company recognizes that safety, environment protection, pollution prevention and

efficiency are an integral part of good ship management which can only be a result of a

combination of right skills, knowledge and experience ashore and onboard vessels.

In order to accomplish the desired objectives as well as provide and maintain the highest

standards of ship management, the company is committed to:

Employ staff having adequate qualifications, skills, knowledge and experience to serve in the

rank or position they have been selected for.



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8. SECURITY:

It is the Company‟s policy to:

Provide a secure working environment, by establishing and maintaining the required securitymeasures to prevent unlawful acts against ships which endanger the safety and security of

persons/property on board and the environment. Ensure that the Master, Company Security

Officer and the Ship Security Officer are given necessary support to fulfill their duties and

responsibilities in accordance with IMO‟s draft amendments to SOLAS Chapter XI-2 and the

ISPS Code.



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PRODUCT AND SERVICES

TECHNICAL MANAGEMENT:

As a Progressive and Proactive Ship Manager, Fleet has under its management all types of ships

(Reefer, Chemical Tankers, Bulk carriers, Gas Tankers amongst others). The Company draws on

its pool of experienced Manpower and Resources, which are at its disposal both ashore and

afloat. It utilizes proven systems based on internationally recognized Quality Management

principles.

CREW MANAGEMENT:

Fleet‟s Crew management service includes a range of activities including, recruitment and

selection, training, and management of officers and ratings deployed on a wide array of vessel

types.

To ensure quality, these services are primarily managed by an extensive network of 10 in-house

Recruitment offices spread across India, Philippines and China; countries which serve as the

primary manning source for the world‟s merchant fleet.

NEW BUILDING SUPERVISON

Fleet Management has an experienced and capable new building supervision team geared to

provide full new building supervision services right from design stage to delivery of the vessel.

Our services include project viability study, plan approval and design modifications as required

to comply with new regulations and operational requirements. Plans are checked & approved by

in-house plan approval team which includes Naval Architects, Marine and Electrical Engineers

& Ex-Class surveyors.



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INSURANCE

Fleet Management can offer very attractive rates for all types of marine insurance through our

associates in the industry such as:

Hull and Machinery,

War risk cover

P & I

Loss of Hire

F,D & D

K&R

Federal and California COFR Guarantees.

PRE – PURCHASE INSPECTION/INDEPENDENT CONDITION SURVEY

Fleet Management conducts pre-purchase and independent vessel condition surveys on behalf of

Ship Owners, Financial Institutions and Banks for all ship types at cost effective rates. Our wide

network of strategically located offices ensures a quick and economical service for a

comprehensive report on your asset picks. Furthermore clients may use Fleet‟s services to spot

check on the structural integrity and operational condition of their ships electronic, mechanical,

or cargo handling equipment.

SUPERINTENDENCE AND SPECIAL PROJECTS

Fleet provides vessel up-gradation and conversion services; from mega alterations of a vessel‟s

function, to minor repair and upgrading works. The service includes feasibility studies, design,

planning and execution of conversion works. Fleet also provides for in-port and at sea

independent contracting and supervision of repair & maintenance services for a wide range of

vessel types on behalf of its clients.



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SHIPBOARD AUDITS:

Fleet management can carry out independent safety and ISM audits to ensure that vessel is

complying with the necessary safety standards and the company's Safety Management System.

These audits can be regular or can be arranged on spot and are likened to health checks for the

efficient running of ships.

TRAINING:

Fleet Management Training Institute (FMTI) was founded in 1997 at Mumbai, India and greatly

expanded in 2003, using state of the art simulators and audio visual aids to meet the rapid growthof the fleet. The institute is a DNV Certified and Director General of Shipping approved

Maritime Training Centre. FMTI courses comply with the requirements of the STCW 95

Convention and the guidelines of Directorate

COMMERCIAL MANAGEMENT:

Our experienced team works to provide comprehensive commercial management services

including strategy and employment management for vessels, negotiation and providing services

in support of charter party contracts, full post-fixture support and account tracking.

Advise on chartering strategies.

Sourcing best employment opportunity for a vessel

Negotiating charter party contracts

Instructing the vessel Master in respect of the charter party terms

Appointment and liaison with port agents

Vessel monitoring to ensure adherence to charter party terms

Voyage reporting and analysis

Supply of Marine fuels



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AREA OF OPERATION:

Head Office

Fleet Management Ltd., Hong Kong11/FDah Sing Financial Centre

108 Gloucester Road, Wanchai, Hong Kong

Branch Offices

Fleet Management Europe Ltd., London, U.K.

Fleet Ship Management Pte Ltd., Singapore

Fleet Management India Pvt. Ltd., Mumbai, India

FML Ship Management Limited, Cyprus

Cosmos Shipping Services Inc., Houston

Crewing Offices in India

Elegant Marine Services Private Limited., Mumbai, India

Elegant Marine Services Private Limited., Delhi, India

Elegant Marine Services Private Limited., Kochi, India

Elegant Marine Services Private Limited., Kolkata, India

Elegant Marine Services Private Limited., Chennai, India

Elegant Marine Services Private Limited., Vizag, India

Elegant Marine Services Private Limited., Patna, India



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Agency Office in Singapore

Ebony Ship Management Pte Ltd., Singapore

Training Institute in India

Fleet Management Training Institute, Mumbai

Crewing Office in Philippines

Fleet Management Services Philippines, Inc.

Crewing Office in China

Gold Fleet Shipping Co., Ltd



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OWNERSHIP PATTERN

MR. KISHORE RAJVANSHY

Mr. Kishore Rajvanshy is the managing director of Fleet Management andwas instrumental in founding the company. Under his able guidance the

Company has seen rapid and steady growth from 1 bulk carrier at the start

to the present diversified fleet of more than 200 vessels. He graduated from

BITS Pilani, a prominent university in India in mechanical engineering in 1969.

CAPT. M. S. NAGARAJAN

Capt. M. S. Nagarajan MNI is a Director and General Manager at FleetManagement. With his team of Superintendents, Technical Assistants and

Secretary, Capt. Nagarajan supervises the maintenance and operation of Fleet

Management's Group 8 vessels. Capt. Nagarajan also oversees the Philippines

manning office, employment of Chinese crew and the dry cargo operations cell.

MR. DILIP K. NAIR

Mr. Dilip Nair is a Director and General Manager at Fleet Management. With

his team of Superintendents, Mr. Nair heads the new building and special

projects as well as development and implementation of the company‟s

Computerized Planned Maintenance System. Mr. Nair graduated as an

Engineer in 1979.

.

MR. SANJAY CHANDRA

Mr. Sanjay Chandra is Technical Director at Fleet Management.

With his team of Group Heads, Mr. Chandra supervises the overall running,

maintenance and operation of all Fleet Management's vessels.



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3 FINANCE DEPARTMENT STRUCTURE:

.

Gm - Finance



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COMPETITORS:



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ACHIEVEMENTS AND AWARDS:

Jin Chan Management Award 2013

Best Performing Ship Management Company in Port State Control Inspection

Hong Kong Management Association Awards for Fleet's safer+ program

„Excellence Award‟ and „Recruit – Most Innovative Award

Pi Xiu Management Award 2011

“Best Performing Ship Management Company in Port State Control Inspection”

http://www.fleetship.com/fleetnews/HKMD%20Jin%20Chan%20Management%20Award%202013.pdf


http://www.fleetship.com/fleetnews/HKMA_Awards_2011.pdf

http://www.fleetship.com/docs/HKMD%20PSC%20Award%202011.pdf












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Seatrade Asia Awards 2010

Fleet bags 'The Ship Manager Award' for the 2nd consecutive year

Best Foreign Employer of the Indian Seafarer Award

by National Maritime Day Celebrations on 5th April 2012

Green Awareness Award 2012

http://www.fleetship.com/images/seatrade_asia_award2010.pdf

http://www.fleetship.com/images/nmdc%20best%20employer%20award%202012.pdf


http://www.fleetship.com/images/HKMD%20Green%20Award%202012.pdf








http://www.fleetship.com/images/seatrade_asia_award2010.pdf



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Project on Mgmt of Accounts in Shipping Industry With Reference to Fleet Management (1)