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FLEXIBILITY IN

AN UNCERTAIN

MARKET

By Olav Eek Thorstensen,

Executive Chairman

The Shipping Industry has always This means that trying to operate With an increased variety of

been cyclical. These luctuations are vessels at a proit is becoming very nationalities onboard, higher work
apparent in all sectors of the maritime challenging and not even inancially pressure, and a reduction in human

market – ship building, ship inance, viable in some cases.resources, the Human Element will
ship owning and related services As a result of the current market become ever more important to us.
including ship management.downturn, owners are demanding a As Thome’s CEO, Olav Nortun,

The oil & gas and dry bulk markets reduction in manning costs and have pointed out in his latest interview with
has been through a particularly tough asked us to also look at alternative Shipping Watch online “Thome is under

time, especially last year. However with manning sources.pressure to work smarter”.
an over capacity of tonnage being built, This means that our managed I agree that this is the case and we need

all shipping segments will be affected.vessels will have a more international to utilize IT solutions and organizational
The demands of the charterers and blend of crew onboard in the futurestructural changes to improve productivity.

industrial bodies are becoming more as we recruit from nations whereIn the current market downturn we
stringent and with reduced charter the wage levels are lower. There will need to work together to reduce costs,

rates, there is pressure to be more cost additionally be pressure to reduce work smarter and more eficiently while
effective. The knock-on effect for ship crew staffing levels onboard which will keeping compliance and safety as our

managers is that clients are demanding put further pressure on our human irst priority.
lower opex costs yet they still want resource planning.The year will be used to restructure

improved eficiencies.We take the “Human Element”and re-align the organization, positioning
Manning costs have always very seriously and through events such us for future growth.

been the largest part of a vessel’s as oficer conferences, training and I believe we have made a good start
operational expenditure and crew onboard kits, we are focusing on better this year to reach our goal of constant

wages have drastically increased communication both onboard, ship to improvement.
during the last few years driven by shore and with third parties such as pilot Let us keep the focus and remember
supply and demand.and marine inspection bodies.that complacency is our worst enemy.

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JUNE 2016 | ISSUE 45