Ship Operations & Management

Ship Operations & Management

A Group Two Subject/Course : NB: No exemption is permitted from this subject.


  1. To ensure a thorough knowledge and understanding of Ship Operations and Management.
  2. To develop relevant communication skills.

Shipowners, Operations And Managers

  • Key functions in ship management: commercial, operational, technical, crewing, bunkers, finance & administration.
  • Type of organisational structure: in-house, all or part contracted out.
    Shipmanagement contracts (BIMCO Shipman)

Ship Types

  • Design and construction with particular reference to suitability for cargoes and trades
  • Dry Trades: Liner Trades – conventional tween decker, multi-purpose vessel, containership, Ro/Ro cargo, barge carriers
  • Tramp Trades – conventional bulk vessel (handy size, panamax, capesize)
    ore carriers; combination carriers (ore/oil, ore/bulk/oil), refrigerated ships.
  • Wet Trades: Crude (ULCC, VLCC, Suezmax, Aframax) Product
    Carrier; chemical carrier; gas carriers; specialist vessels
    Ship-borne cargo handling gear including heavy lift and self unloaders
  • Terminology of measurements including dimensions, tonnages, cubic capacities, TEUs. Content and information available from capacity, general arrangement and stowage plans.

Registration, Classification, Port State Control, ISM Code

  • Choice of flag, flag states, offshore registries and flags of convenience.
  • The role and function of classification societies. Classification societies registers.
  • Class maintenance programmes and class surveys.
  • Safety certification. Port State Control.
  • Other surveys including on/off hire, pre-loading and bunkers
  • ISM Code – origin, application and audits.
  • Environmental protection; pollution liability.


  • Fixed costs – return on capital, amortisation, debt servicing.
  • Daily operating costs – crew expenses, victualling, stores, lubricants, insurance, P & I calls (including reserve for deductible), repair/ maintenance, dry docking, communication.
  • Voyage related costs – bunkers, port costs (including tugs, pilots, agency fees), canal dues, loading/discharging costs.
  • Budgeting and financial results.


  • Manning levels, recruiting officers and ratings. The Master and his authority. Using crewing agencies.
  • International regulations: Standards of Training, Certification & Watchkeeping (STCW),
    International Labour Organisation (ILO), International Transport Workers Federation (ITF). National trade unions.
  • Essential elements of crew costs; basic wages, overtime, allowances, leave, social costs. Crew nationalities, mixed crews.

Marine Insurance

  • Hull and Machinery. Markets and placements. Institute warranties. Institute Time Clauses.
  • Additional cover (war risk, ice etc.), Total Loss, Constructive Total Loss (CTL).
  • P & I – The constitution and cover provided by mutual associations. Strike insurance, pollution insurance.
  • General Average when and why to declare it. The role and function of average adjusters.
  • Coping with casualties. Limitations of liability, salvage claims. Lloyds Open Form and salvage arbitrations.
  • Cargo claims.

Vessel Operations

  • Commercial Operations: voyage instructions, loading and discharging, compliance with contract including speed and performance issues. Other post fixture matters.
  • Technical Operations: Repair & maintenance, stores, dry docking.
  • Vessel routing: geographical and meteorological considerations, load line zones, canals and waterways.


Stowage factors; Characteristics; Stow plans & stability; compatibility, cleanliness, segregation etc.; IMDG Code, Outturn reports, tallying, sampling & disputes; Cargo damage, survey & reports.

Bunker Management

Bunkers: Types of fuel supplied and their characteristics; Main bunker ports. Key players in the bunker market, contracts (use of FuelCon), quantity and quality measurement, sampling and testing.


  • Freight/hire collection, port disbursements, dealing with port agents.
  • Demurrage/despatch claims. Dealing with contractors and sub-contractors including Tugs, Pilots, Stevedores, Terminal operators, Riggers, Hold/Tank cleaners, slop disposal services, dry docks, engine builders, lubricant and bunker supplies, repairers, ship chandlers etc.

Voyage Estimating

  • Route calculations. Maximising cargo lift – load line zones and stability issues.
  • Bunker planning – choice of bunker ports.
  • Comparing different employment offers and alternative routes.

Law Relating To Ship Management

The legal position of the ship managers in relation to; cargo claims; arrest in rem; freezing orders and late hire payment.

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