How the Social Responsibilities of Ship Management Business Managers Changed over the Years - Assignment Example

Running Head: MANAGEMENT WORK Management work of the of the Management work Question How have the social responsibilities of ship management business managers changed over the years What now is a major part in their business policies Give relevant examples of genuine companies if possible. Response The development of containerization in world trade took place in the 1960s and 1970s when computerization was well established in commerce and was developing very quickly into other areas. The newly emerging container ports and terminals were ideal for the development of inventory and logistics control type computer systems and those systems have been continually updated as the container trade became more sophisticated and as the capability of computer systems advanced. Thus container shipping was one of the early industries to become heavily reliant on operational computer systems. However, it is one thing being able to access all the information in your computer systems on your own premises, but the true benefits from technology are only really experienced to the full when you have the ability to communicate this information wherever and whenever it is needed. State-of-the-art communications are fast becoming a necessity in today's international freighting and transport industries. Sophisticated logistics chains, offering a fast and flexible response to customer demands, require an accurate flow of information for tracking, planning and control. An efficient, streamlined system such as this is essential in order to meet the demands of the "just-in-time" concepts developed by the manufacturing industry whereby every stage of the process is timed to perfection. Everything required, no more no less, is in the right place at the right time, thereby saving huge amounts of time and money associated with stock inventories. Fast and efficient planning, stowage and tracking of cargo are the freighting and transport industry's response to manufacturers' needs. (Lakshmanan, 2001) From the outset, many sectors of the shipping and containerization industries saw electronic data interchange (EDI) as a natural technology for the communication of much of this vital information. The development of EDI standards was closely monitored by the industry and a message development group was set up early in the life of the EDI Association to consider new Electronic Data Interchange for Administration, Commerce and Transportation - or trade (EDIFACT) standards for the shipping industry. In the deep-sea trade, a single container vessel can currently carry in excess of 4,000 containers. Typically, for example, a vessel will load containers at four or five ports in Europe for discharge at any of six or more ports in the Far East and it will additionally discharge and load containers at two further ports on the way. It is, therefore, a complicated exercise to keep control of the stowage plan such that all loading ports can add their cargo to the ship efficiently and with the minimum movement of the containers already on board. Additionally, the ports where cargo is to be unloaded are required to be able to access their containers easily and without having to move other containers in the process. (Shipley, 2003) A stowage plan of a container vessel is called a bayplan. A bayplan, in paper form, is a series of diagrams consisting of each cross-section of the ship or a list of each possible location on the ship and its contents. In EDIFACT terms, a bayplan is a UNSM called BAPLIE, which consists of a header section with information identifying the vessel and then a group of segments which is repeated for each container on board and containing relevant information about the container including its position on the ship, its loading and destination ports, the nature of the goods carried and the conditions under which it should be stowed on board. Traditionally, the bayplan was transmitted between port container terminals and ship planners by telex or by fax - typically in the Far East trade such a fax was 60 pages long. The major container ports like Southampton had to produce a paper document from records held in their operational computer system for onward transmission and, when they received a bayplan transmission for a vessel shortly due to call at the port, all the information had to be keyed by hand into the port computer system. This operation could take an experienced operator four hours, was prone to errors and the information passed was not always the most up-to-date and latest available. EDI is now saving time, eliminating the re-keying process, reducing errors and utilizing the most up-to-date information available. The latest data from one port are being sent by EDI directly into the computer system of the next port. This is achieved by using the value added services provided by a specialized network which is dedicated to the freight transport industry and run by Community Network Services (CNS). This service enables shipping lines and container terminals to exchange these bayplan or status messages worldwide through a single link. This removes the need for individual organizations to develop their own multiple, bespoke, and therefore expensive, connections to business and trading partners around the globe. (Goulielmos, 1997) When a vessel leaves its last port of call in the Far East, the final bayplan is sent to the shipping lines' central co-ordinator for Europe where it is amended and edited where necessary. It is then sent to the network for distribution to European ports. The vessel moves very quickly between the northern European ports and, as those ports require the information for planning purposes some time before the vessel is due, the bayplan is sent to all of the ports in its original form and the later ports of call receive updates as the information is changed as a result of operations in the previous ports. In most modern container ports, the information contained in the bayplan is integrated into the port's operational computer system where anyone concerned with the ship's operation in the port may have access. The port computer system keeps an up-to-date image of the vessel and its state of unloading and loading, often through sophisticated methods such as transferring data directly to and from specialized computer terminals located in handling equipment on the quay so that an actual operational picture is obtained. The port will then construct an updated BAPLIE message to reflect the latest state of the vessel and pass the bayplan back to the network for distribution. This process is repeated as the vessel leaves each port. The efficiency of the system is achieved by the fact that each of the ports and the shipping line central controllers have their own bespoke computer systems which control their operations and also accept and transmit standard bayplan messages. (Burnett, 2000) The BAPLIE message passed between the ports contains useful information; however, in its raw form it is unintelligible to all but a computer. Therefore, the computer must be utilized to translate the EDIFACT data into something which port operators will understand and recognize as part of their day-to-day functions. In the container shipping industry, we are fortunate, as the development of containerization in world trade took place in the 1960s and 1970s when computerization was well established in commerce and developing very quickly into other areas. The newly emerging container ports and terminals were ideal for the development of inventory control-type computer systems and those systems have been continually updated as the container trade became more sophisticated and as the capability of computer systems advanced. Thus, container shipping was one of the early industries to become heavily reliant on operational computer systems; now with further development in computer and messaging technology those systems can be enhanced to provide further increases in efficiency. The load planning of a container ship in a port is a complex task which used to be carried out with the aid of a very large sheet of paper and a variety of coloured pens utilizing data from the computer system and finally keying the completed plans back into the system. Now systems have been introduced which present a graphical interface to the computer system. Profiles of the ship and the stack of containers awaiting loading are displayed, containers can be moved by the click of a mouse, and load and stability calculations performed at the press of a key, and all of this before a single container has actually moved. In fact, the whole operation of loading a ship is planned inside the computer using data received directly from another operational system and with the planner performing all operations on screen onto a graphical image of the various parts of the ship. Question 2 Explain how a new Container Terminal/Port Development may cope with or influence the external environment in which they operate. Give relevant examples of external environments. Response Within the shipping lines, the departments responsible for arranging inland transport are not always located in the port. The transmission of data between the transport offices and the port has allowed the development of a paperless system for the release of containers to the haulier in the port. The port system passes information on containers which includes the delivery address to the transport department within the shipping line. That department is responsible for arranging the haulage and informing the haulier of details required to obtain the container. When the haulier arrives at the port, if all is well and data match within the computer system, he is given the container and delivery note. The delivery note confirms the delivery address and, more importantly, advises the driver if he requires any documentation such as Trem cards which cannot yet be replaced electronically. The shipping line can also control its own movements out of the port by train. They can send messages from their operational computer system to the port control centre to allocate containers to particular trains. These messages are integrated into the port computer system and the containers specified are automatically scheduled for movement to the rail head. This example of messaging once again eliminates the need for the production and sending of numerous faxes and the re-keying of the information into the port computer system. The system now assists the shipping lines with their container-tracking systems by passing messages to their computers when containers pass into or out of the port, when they are loaded or unloaded from the ship and other significant events. Shipping lines are often inundated with telephone requests from just-in-time importers taking up valuable working time at both ends of the telephone. Now the port sends a message to the shipping line's computer which, in turn, can send a similar message to the importer's computer system. That message will then be in place in the importer's computer system for their just-in-time production scheduling. Similarly, when a container is loaded and the ship departs, a message is sent to the shipping line who can then inform the exporter. The efficiency of the system is achieved by the fact that each of the ports and the shipping line central controller have their own bespoke computer systems which control their operations and can also accept or transmit standard bayplan messages. However, as everyone knows, there are differing versions, implementations and interpretations of the standards. Thus, an important function of the network is to make sure that each recipient receives the information in a form which his computer system can accept and understand. The network needs to provide translation facilities from, or to, proprietary file formats into the appropriate EDI standard enabling shippers to communicate with all container terminals without having the added worry of the worldwide variation in EDI formats. It is therefore important that the network supports a wide range of EDI standards such as UN/EDIFACT, American National Standards Institute (ANSI) X12, TRADACOMs (Trading Data Communication) (UN/GTDI) and ODETTE (Organization for Data Exchange by Tele Transmission in Europe) and is communications and network protocol independent, supporting all of the current CCITT standards. A total system, such as that described here, requires all of the participants within a trade route to take part, and if only one organization is unable to participate, the whole system breaks down. It is therefore an important function of the network administrators to discuss capabilities and requirements with each potential participant and actively to assist and advise during implementation. As we have seen, it is also necessary for the network to be able to accept non-EDIFACT messages and translate them so that the whole system is not held up while a particular participant develops his own EDIFACT capability. Currently, the system is live in European and Middle Eastern ports in the trade route and ports in the Far East are coming on-line at present. Soon, the whole operation will involve messages being passed from port to port round a complete loop with each port operator being able to utilize the data by interfacing them to their operational computer system. Then we really will be able to say "untouched by human hand"! Another area of port operations which has been streamlined beyond recognition through the implementation of EDI is the collation and dissemination of the information required by HM Customs. Each year, thousands of export-related entries are made at the UK's three major ports of London, Liverpool and Southampton. Each of these represents a single commodity shipment leaving the UK and may attract a whole host of paper-based information vital for the various authorities involved. The electronic system provides an integrated approach that links inventory and community management systems with HM Customs' CHIEF exports system. The CHIEF system, developed to speed up and rationalize information on imports and exports through British ports by transferring information from computer to computer using EDI messages, has been in operation for several months now and is proving to be a quick and efficient system for import-related entries. However, many shipping and forwarding agents are reluctant to move over to the exports system, even though direct links between the various parties not only reduce paper pollution and speed up transactions, but also generate a useful database of information on all export commodities. (Galt, 1999) The new system allows all types of export entries to be linked to the community systems. It not only incorporates additional functionality to the old HM Customs' DEPS system, but also facilitates more efficient movement of goods through the port. Export inventory records can now be created for each individual container before it arrives at the port, speeding up turn-around times for hauliers and allowing more logical initial placement of containers at the port. This information can then be passed as an EDI message to both the shipping agent and HM Customs. A large majority of exports are processed using the simplified clearance procedure (SCP) which allows non-restricted goods to be processed with only a standard shipping note (SSN). These entries are automatically entered into CHIEF post-shipment by the computer system. The advantage here is that integration with inventory control systems allows HM Customs to cross-check these entries with actual shipments made, thus removing the chance of errors or potential fraud. The remaining export entries, using the C88 form, are automatically validated, and credibility checks are carried out by the CHIEF system. There is also a profiling mechanism for HM Customs to allow them to perform spot checks and statistical samples of export goods. At the end of the process, an entry reference number (ERN) is allocated to each declaration. This cross-referenced inventory and Customs' information creates a valuable unified set of data for both port authorities and shipping lines. It is particularly relevant for the export of hazardous goods. For the first time port authorities, shipping lines and Customs can have access to an up-to-date, unified database of export details in real time. By rationalizing and automating much of the information transfer necessary for export control, the new system will speed up the flow of materials around and through British container ports, allowing shipping lines and Customs to operate more effectively, and may also save time at destination ports. One of the biggest problems to the adaptation of EDI is the set-up cost for smaller organizations operating in this industry sector. It is often the larger companies who impose EDI on their suppliers, such as forwarding agents, who are then forced down the EDI route in order to retain the business. Participating in community systems allows such small companies the benefits of economies of scale which they would otherwise find difficult to achieve. Further, it is very important to provide these small companies with a PC EDI solution which will translate working data into messages and messages into an understandable form. The British International Freight Association (BIFA), recognizing this problem, developed an EDI network which was subsequently acquired by CNS in 1993. By having integrated and user-friendly solutions, these small companies can utilize many features from a low-cost EDI workstation. Standard EDI message-sending and receiving facilities are combined with applications processing the data. Electronic mail facilities are incorporated which also interface with the traditional fax and telex systems. Access to on-line databases, such as Lloyds, is incorporated and bulletin board facilities can be provided for specific groups of users. The concept of true inter-modal freighting, combined with just-in-time logistics, is the ultimate goal of the freighting and transport industries. However, it is a prerequisite that a truly efficient telecommunications infrastructure which is capable of effectively communicating the vast and differing amounts of information this creates is in place. EDI is the one technology which, when developed by a freight industry specialist, could provide the panacea. References Burnett, J.S. (2002), Dangerous Waters: Modern Piracy and Terror on the High Seas, Dutton, . Galt, J.A., Payton, D.L. 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