TTM03820 | Qualifying companies and ships: Commercial management

Commercial management of a ship

This concept is undefined. But it is likely to include a range of ship and technical management activities below strategic level (but there may be some overlap) carried out in the UK over a broad spectrum which includes the following (and where it can be demonstrated that these activities contribute substantially to economic activity and employment within the UK, and improving environmental standards):

• route planning,

• bookings for cargo or passengers,

• arranging insurance,

• arranging finance,

• personnel management,

• provisioning and victualling,

• arranging training,

• arranging repair and maintenance of vessels,

• ship superintence,

• bunker management,

• safety management,

• recruiting and managing crew,

• managing vessel pools,

• support facilities (for example training centre, terminal management),

• ship registration/flagging,

• arranging vessel classification,

• managing dry and wet docking arrangements, and

• managing and supervising environmental obligations.

The test, as discussed at TTM03800, has to be interpreted purposively and it is not possible to lay down clear and precise rules on the extent and nature of the above criteria which must be included, but TTM03830 gives some pointers. Greater weight will be given to higher levels of decision-making and management, in contrast to routine daily management. Flagging is a relevant feature but this will not be interpreted as limiting owners' freedom to flag where they wish.

Vessel pools

These are explained at TTM15210. The aim of vessel pooling is to provide cost-effective commercial management activities for a collection of similar class vessels which may be in different ownership. The vessels typically operate under a time charter with fuel bunker and port expenses borne by the charterer and operating costs including crew, maintenance and insurance typically paid by the owner. This type of arrangement should be regarded as consistent with retaining commercial management where indicators are satisfied looked at together.

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