CHARACTERISTICS OF SHIPPING BUSINESS

Shipping business has three main characteristics i.g. : capital intensive/large investment, high risks and long payback/slow back investment.. But why the shipping business interesting ? because shipping business is a unique business , challenging and promosing big profit.

Say unique because in every operational activity will never face the same things and ways of handling the same, both in the field of operational activities, movement of the vessel, handling repairs and maintenance, crewing/manning, claim insurance, security and safety issues, even the administrative problems and others.

Say challenging because of the various cases or problems encountered, need expertise, professionalism, and certain tricks in handling.

 Other challenging to be faced is the safety and security requirements that must fulfilled in accordance with the provisions of  IMO ( International Maritime Organization) such as the ISM Code and ISPS Code and Class requirements.

To fulfill requirements, need big fund , especially for maintenance, repair and certification. On the other side,the price of one unit of the vessel is not cheap and generally vessel procurement investments can not be implemented with its own capital  but should be with the assistance or finance support from both the financial institutions from banks or non banks that would be burdened with interest , so the investment vesel as the main production of the shipping companies have becomes very expensive being Return Of  Investment (ROI) for along time. But behind it all the shipping company that promises big profits. Here's the interesting.-

Author : Mohammad Thahir
Email  : emthahir@gmail.com