Operations dept.: spending

&collecting; it collects the (accurate) amounts due to company via the “Freight Collection Section” (FCS); the disbursement accounts control section (DCS) monitors & reduces the cost of company’s appointed Agents

Chartering Dept.: collecting; bringing-in the freights & hires in time; freights sometimes are lost or not paid (cases passed on to Legal dept.) (*); attention should be paid for who receives the commissions and what a/c has to be credited with freights and hires;

for ship-model, chartering had to accept a freight rate per ton greater than $10.36 to cover total cost and have a profit of ~12% p.a.

Supply Dept. = a par excellence

spending dept.; it draws management’s attention for cost control; a prudent and honest ^^ manager(**) must be appointed; important here is to specify who has to receive commission on company’s supplies! $95,000 for stores, supplies and equipment is spent for the ship-model

Technical Dept.: is heavy spending (***); to draw the attention by priority of top-management; to have control especially of the amounts of lubricants and bunkers consumed by main engine etc.; the control of spare parts etc. is absolutely necessary

Marine HRM Dept. = spending (****); in our ship-model, crew cost is $1,470,000 p.a. for 26 persons under USA flag; 15% of total cost; the flag choice is a strategy, as well crew nationality

Port Captains Dept. = spending

Insurance Dept. = spending

&collecting via claims and P & I clubs; it needs dexterity, experience & knowledge to achieve the lower possible insurance premiums and collect the higher possible claims! It cares for cargo claims

Administration Division = spending; caring for office staff recruitment^ & training, and for Secretariat dept. caring for office equipment etc. at best prices. ^it cares to pay wages comparable with the rest of the industry

IT dept. = spending; it cares to adopt the latest and best available technology in communications, computers and networks

Economic Division = spending (*****), saving and collecting

(*) Legal dept. (collecting) pursues lost or unpayable freights and hires among other legal matters in various legal international regimes; claims have time bars which have to be observed

(**) It cares so that expenses for crew provisions per head or per day to be equal or lower than other shipping companies; ship-model spends $ 50,000 for crew subsistence p.a.

(***) Large companies have a performance engineer, who saves money from the proper function mainly of main engine; money is saved here

(****) it cares to pay comparable wages among other companies

(*****) It cares to achieve best loans, to protect company from foreign exchange risks; to secure high interest rates for company’s deposits; it cares for company’s liquidity and maintains good public relations with banks etc.; important dept.

^^ honesty is the most sought after in connection with this dept.; important is (at this time) the fuel cost of $1,980,000 p.a. ~20% of total cost of the ship-model; economize on this cost is important