Gandhinagar, Gujarat (India)

Subject Title: MANAGEMENT OF SHIPPING

COMPANIES

Report Title: - Process of Shipping Company -

STEALTH MARITIME CORPORATION S.A.

Course Code: SMM4302

For MBA Shipping and Logistics

Sem – 3: Batch 2021 – 2023

Submitted by:
Karamveer Singh

Submitted to:
Dr. Chirag Patel
Assistant Professor - HRM
GUJARAT MARITIME UNIVERSITY
 DECLARATION
I ‘Karamveer Singh’ hereby declare that the report of project work is
based on the readings carried out during the study, under the concerned
faculty supervision. I assert that the statements made are outcome of
study. I further declare that, in my best belief and knowledge the study
has not been submitted in any other institution for any kind of award,
and same in future also.

KARAMVEER SINGH
M.B.A (shipping & logistics)

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 Abstract
Ship Management is an important part of maritime traffic supervision
and management, including the registration and management of ships,
visa of ships entering and leaving the port, management of foreign
vessels, ship maintenance management and technical ship
management. In this study, the role, duties and responsibilities of the
departments, that a Shipping Company consists of, are going to be
presented.

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 Introduction
Ship management, as the name suggests, deals with the process of
managing a ship. The ship management company manages ships for
the owner and pays him the yearly amount, which is settled between
the owner and the ship management company. Moreover, the owner of
the ship signs a contract and leases the ship to the ship management
company for a defined duration of time.
Managing ships is not an easy task. Ship management includes several
tasks, which are to be carried out before, during and after the operation
of the ship. The first and foremost thing, that a ship management
company needs to do, is get the ship approved. There are many
approvals that are to be taken from different classification societies.
Dedicate department for the management of the shipping company
some are –
 Finance
 Chartering
 Safety
 Insurance
 Technical
 Sale and purchase
 Legal
 Crew department
 HR department
 Operations department

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 STEALTH MARITIME CORPORATION S.A.
About Company
STEALTH MARITIME CORPORATION S.A was established in
1999. The company began with cautious and well examined moves
quickly becoming one of the fastest growing shipping companies in
Greece. Its success is a consequence of its timing in purchasing vessels,
its staff, all of whom are well trained and experienced in the tanker
markets, its financiers, and the excellent performance and flexibility of
its vessels.
In more than 20 years since its establishment, Stealth Maritime has
earned the trust of owners for its efficiency and quality management.
The company now manages a diversified fleet of Aframaxes, product
tankers, stainless steel tankers, and LPG carriers.
The majority of Stealth Maritime's tankers trade worldwide. Its vessels
are fixed with first class charterers including AET, HEIDMAR,
NAVIGS, VITOL, Glencore, Reliance, and many others.
Currently all the tankers operated by Stealth Maritime hold oil major
approvals, a validation of the company's dedication to the highest levels
of inspection and vetting.
The mission of Stealth Maritime & its Senior Management is to ensure
that Quality, Health, Safety, Security & Environmental considerations
remain top priority for the Company’s management and employees.
Prevention of accidental risks & losses due to process failure are
recognized as an integral part of continuous improvement culture.
Stealth Maritime will strive for a long-term ZERO TOLERANCE
culture aiming to have:
 no accidents,
 no health-related incidents,
 no marine and atmospheric pollution ,
 no oil spills,
 no loss of process capability,
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  no lapses in security
Success is attributed mainly to the timing of buying the vessels, our
well trained and experienced staff in the tanker markets, the excellent
support of financiers and the good performance and flexibility of
vessels towards the charterers.
The management has decided to focus & invest on Aframaxes &
product tankers only. These vessels are mainly fixed with first class
charterers like: AET, HEIDMAR, NAVIG, VITOL, Glencore,
Reliance, & more.

List of fleet as by company –

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6
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 Department and Functions of STEALTH MARITIME
CORPORATION S.A.

1) Sale and purchase department.

“The well-known strategy of "buy in weak market, sell in strong
market" has been the company's sale and purchase strategy through
the years.
The sale & purchase department is in close cooperation with the
chartering department these two departments are joined together.
This provides useful information about what income can be
forecasted from a prospective vessel to buy, when is the right time
to proceed and what kind of short or long employment can be
found for the vessel.
Having good long lasting relationships with major broking houses
helps in order to identify serious sellers, private ships for sale,
participating in auctions and having accurate data about previous
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 sales, bidding levels, constructing projects involving purchase with
employment etc.
The sale & purchase department has communication with over 100
sale and purchase brokers based in the UK, USA, France, Greece,
Italy, Monaco, Brazil, Korea, Japan, China, Denmark, Singapore
and others.
The company's sale & purchase department has unquantifiable
experience in dealing with all kinds of buyers and sellers, placing
new building contracts, selling for demolition, making projects and
using other tools like leasing, bareboat hire purchase etc. ” 1
2) Purchasing department.
“The Purchasing Department is responsible for purchasing all
Consumables for the managed fleet. These consumables include:
 Bunkers
 Lubricants
 Engine /Deck spare parts
 Paints
 Gases /Chemicals
 Stores etc.
The department ensures that many quotations are taken and
compared, not only on price but on quality as well, before the
actual order takes place. The department's target is to supply
vessels with stores of premium quality at the best possible price
in order for the vessels running costs to be maintained at low
levels. Due to the company's long and successful presence in the
industry, its excellent reputation, and the utilization of
economies of scale available through its sheer number of
managed ships, the purchasing department is able to obtain
greater-than-industry-standard discounts when it comes to
purchasing consumables and spare parts.”2

1
https://www.stealth.gr/profile/departments/19-sale-a-purchase-department.html
2
https://www.stealth.gr/profile/departments/21-purchasing-department.html
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 3) Finance and accounts department
“Finance & Accounts Department consists highly educated and
experienced people, who are involved in:
 every aspect of controlling debit and credit,
 the suppliers' payments,
 As well as producing the associated balance sheets.
The department is in charge of preparing annual and periodical
reports, as well as yearly budget, well in advance, and submit them
to the management in order to assist for crucial decision making.
The company follows International Financial Reporting Standards
(IFRS) audited by Moore Stephens. The financial aspect of the
department deals:
 with the control of the company's cash flow,
 the financial feasibility of a project,
 the relevant negotiations with financial institutions, the
follow up of loan outstanding
 And various other financial products.
The company enjoys established business relationships with
international and national financial institutions.” 3
4) Operation-NAVAIDS-freight collection
“The Department's responsibilities include:
 Monitoring vessels’ performance during time or voyage
charters, considering always crew/ environment
/vessels/cargo safety, evaluating / appointing agents in
various ports,
 Send voyage orders to the voyage chartered vessels and liaise
(cooperate on mutual concerns) with the masters/port
agents/shipbrokers and other 3rd parties regarding all the
post-fixture items for the smooth conduct of the voyages.

3
https://www.stealth.gr/profile/departments/31-finance-and-accounts-department.html
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  Control document against acceptance (D/A)
remittances/payments, supplying vessels with appropriate
charts and publications required for each voyage,
 Follow up -
- Supplying all kinds of Navaids (navigational aids)
as per safety standards recommendations; bunker requirements/
stemming, surveys, etc.
- Billing of freight / hire revenues and also calculation of lay-time
and billing of accrued demurrage.
- Checking charterers’ payments against billed invoices and
preparing relevant statements for Accounts department
- Dealing with the checking and defense of off hires along with
lay-time and other disputes.
The freight collection department, which is within the operations
department, is also in close cooperation with the Accounts –
Chartering departments for monitoring receipt of outstanding
balances. The operations department is also in close cooperation
with the Vetting - Safety - Marine department for all inspections
and items concerning oil company approvals.”4
5) Technical department
“Technical Department is staffed by Marine Engineers of high
experience and engineers with university degrees.
The main concern of the technical department is the appropriate
maintenance of the vessels according to classification societies,
port and flag states, oil company’s requirements and high industry
standards. This objective is fulfilled by:
 close monitoring of day to day performance of the vessels
and relevant technical records,
 frequent visits on the vessels,
 proper and timely maintenance,
4
https://www.stealth.gr/profile/departments/22-operation-navaids-freight-collection-department.html
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  Repairs scheduling and upgrading vessels’ sub-systems
where necessary.
The technical department is watching carefully the introduction of
new rules and regulations as well as technical development and
innovative industry practice through the continuous training and
seminar attendance of technical department staff.
The technical staff carefully monitor the maintenance and survey
position the vessels. Its research arm advises on new regulations
coming to force, new developments in ship design and
performance.
A group of skilled repair workmen is employed on a permanent
basis by the company and operate as a roaming repair force. This
mobile team is sent on board any of the vessels that might be in
need of maintenance or upgrading. They form an invaluable part of
the company because they ensure that any work that needs to be
done to the vessels is carried out quickly and efficiently.”5
6) Chartering department
“The Chartering Department is responsible for:
 Marketing the managed fleet
 Securing cargoes for the open vessels as well as long-term
contracts of afreightement and ensuring a steady positive cash
flow by fixing the vessels on time charter or long bareboat if
the freight market creates such opportunities.
 Stealth Maritime's chartering activities have developed
excellent relationships with many charterers like Vitol, BP,
Koch, S-OIL, Westport, Heidmar and especially with those
based in S. Korea like SKS, SK Corp., HMM, Hyundai Oil,
due to the frequent trading of the vessels in the broader far
east region.
 The department is in constant communication with over 40
brokers based in the UK, USA, Singapore, Japan, Italy,

5
https://www.stealth.gr/profile/departments/17-technical-department.html
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 Greece and China in order to collect and analyze market
information.”6
7) Insurance and claims department.
“Responsibilities/functions: Negotiations/placing & attendance of
current insurance for: H&M, P&I, War Risks, Loss of Hire, And
Freight at Risk. Issuance/renewal of COFR (Certificate of
Financial Responsibility) compliance with local requirements for
pollution certificates.”7
8) Legal department
“Functions/ responsibilities of Legal Department:
 Claims of H&M , P&I, FD&D (freight, demurrage and
defense), Loss Of Hire (all Carriage Paid, Memorandum Of
Agreement (MOA) & contracts disputes in arbitration, court,
mediation)
 Corporate Matters
 Vessel’s registration
 Sale and Purchase Transactions.
 Shipping Finance.
 Shipbuilding Contracts.”8
9) Human resource
“RESPONSIBILITIES
 To monitor the Company’s training program for shore based
employees concerned with the implementation of the Safety
Management System.
 To ensure that training needs identified for the Shore-based
employees, are satisfied.
 To maintain and update the personal files of all the
Company’s office employees.

6
https://www.stealth.gr/profile/departments/18-chartering-department.html
7
https://www.stealth.gr/profile/departments/23-insurance-a-claims-department.html
8
https://www.stealth.gr/profile/departments/24-legal-department.html
COFR (water pollution)– issued by US coast guard under US federal regulations.
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  To co-ordinate office staff leaves and substitution
arrangements.
COMPUTERS - IT SUPPORT - COMMUNICATIONS
RESPONSIBILITIES
To provide support in terms of software and hardware for the
efficient operation of the company’s computerized communication
system. To back-up the office electronic data stored at frequent
intervals.
The technical staff carefully monitor the maintenance and survey
position of all Group’s vessels divided in two teams, one for the
bulk carriers and the other for the tankers. It’s research arm advises
on new regulations coming to force, new developments in ship
design and performance.”9
10) Crew department
“Crew department of Stealth Maritime responsibilities is mainly
to ensure that ships are manned with adequate qualified, skilled,
certificated and medically fit seafarers in accordance with
national and international requirements, as well as in line with
the high standard company has set up.
Those responsibilities in particular include -but are not limited-
the following:
 Monitoring manning level and forecasting manning needs for
all vessels.
 The identification of hiring/promotion needs as well as the
determination of required qualifications and skills
 The final selection, engagement, administration and training
of all seagoing personnel in co-operation with Ops and
Technical department for top-4 officers
 Hiring of all shipboard personnel, directly, via authorized
Manning Offices or via subcontracted Crew Managers

9
https://www.stealth.gr/profile/departments/45-human-resources-department.html
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  Controlling and evaluating the performance of Manning
Offices and sub-contracted Crew Managers
 Consistently evaluates the performance of all seafarers to
ensure the above requirements.
 Maintains updated records for all seafarers employed by the
Company.
 Follow up of Industry wages
 Setting and control of the annual Crew Budgets”10

11) Marine - safety department

“This is one of the most crucial departments in the organization.
Vetting matters:
 It coordinates the invitations for the tanker inspections by oil
companies.
 It gives guidance and instructs masters/officers for the above
inspections
 Internal vetting and visits always take place prior and during
vetting inspections.
 A superintendent from the above department routinely
attends vetting inspections.
 The department follows up any observations that might have
been noticed during vetting inspections.
 There is constant communication and correspondence
between the department and the Oil companies after an
inspection takes place.
 The department has to update the management and the crew
onboard vessels about latest regulations concerning oil
companies’ requirements.
 The manager of the marine/safety/vetting department often
visits oil companies’ offices and discusses matters relating to
the managed vessels.
Safety matters

10
https://www.stealth.gr/profile/departments/20-crew-department.html
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  It follows up the certification process of the ISM code and
revises the SMS.
 It performs internal/external audits.
 It updates the management and the vessels for all matters
related to safety as per flag states, IMO, Class Societies etc.
 It conducts training seminars for the office staff and seafarers.
 It monitors the safety and pollution prevention aspects of
each ship's operation, ensuring that adequate resources and
shore based support are applied as required.
 It ensures that the requirements of the International Safety
Management code (ISM) and the company's Safety
Management System (SMS) are implemented, maintained
and wherever possible improved.
 It ensures the investigation of accidents and the accurate
reporting of hazardous occurrences.
 It organizes and coordinates management review meetings
and revises whenever necessary the company's controlled
documentation system.”11

11
https://www.stealth.gr/profile/departments/25-marine-safety-department.html
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Figure – process of shipping company

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