Contships Management Inc.

Reliable Services
 Our Team

is

Dedicated

Exclusively

to the

Management

of

Container Ships

Worldwide
“Protect the Environment”
 MIntroduction
Malcolm P.
alcolm P.
McLean to
McLean
Container
(1913 – 2001) Shipping
(1913 – 2001)

Malcom P. McLean (1913 - 2001) fundamentally transformed the liner business.

He is attributed to being the pioneer of container ships.

The idea for shipping large cargo boxes came to him one day in 1937 in Hoboken, N.J., as
he watched longshoremen loading and unloading goods. It dawned on him that sorting and
packing goods into containers for shipment would make the process faster, safer and cheaper.

In the early 1950s, he had 1,776 trucks and thirty-seven transport terminals along the
eastern seaboard, he had built the largest trucking fleet in the Southern States and the
fifth-largest in the USA.

He finally went on to pursue his idea of containerizing cargo in 1955 when he sold his share
of McLean Trucking and bought the Pan Atlantic Steamship Company of Mobile, Alabama.

First ever converted Container ship, “Ideal-X”, 1956

In 1956, he developed the metal shipping container, which replaced the traditional
break bulk method of handling dry goods and revolutionized the transport of goods
and cargo worldwide.

On 26 April 1956, Malcolm McLean's converted World War II tanker, the Ideal X, made
its maiden voyage from Port Newark to Houston in the USA. It had a reinforced deck
carrying 58 metal container boxes as well as 15,000 tons of bulk petroleum. By the time
the container ship docked at the Port of Houston six days later the company, later
became known as Sea-Land First ever was
Service, converted
alreadyContainer ship,
taking orders to"Ideal-X",
ship goods1956
“Ideal-X”, back to Port
Newark in containers.

In 1956,was
McLean he named
developed
"Manthe metal
of the shipping
Century" container,
by the which
International replaced
Maritime Hallthe traditional break bulk
of Fame.
method of handling dry goods and revolutionized the transport of goods and cargo worldwide.

On 26 April 1956, Malcolm McLean’s converted World War II tanker, the Ideal X, made its
maiden voyage from Port Newark to Houston in the USA. It had a reinforced deck carrying
58 metal container boxes as well as 15,000 tons of bulk petroleum. By the time the container
ship docked at the Port of Houston six days later the company, later became known as Sea-
Land Service, was already taking orders to ship goods back to Port Newark in containers.

McLean was named “Man of the Century” by the International Maritime Hall of Fame.

1
 Container shipping has been the driving force in globalization for the past 50 years.
Its standardization has allowed for integration with the onshore transport systems and
has lead to a great reduction of costs in international trade and increased its efficiency.

First a shipper fills a container with cargo, then it is transported by truck, rail or barge to
a container port where it is loaded onto a container vessel. It is then shipped either to its
destination port directly or via a hub port and then on a feeder vessel to its final destination.
At its destination port it is off-loaded and delivered to its receiver by truck, rail or barge.

Advantages of container shipping compared with other shipping modes include: less
cargo handling, efficient port turnaround, highly developed intermodal network and
reduced shipping time.

Container shipping companies operate scheduled or liner services, using owned or chartered-
in vessels, aiming to attain an optimal frequency and utilization level. Major container
shipping companies have been increasingly chartering-in a greater portion of their fleet from
third party owners on competitive charters rather than purchasing vessels outright.

Container shipping has a fundamental position in global trade; it is one of the fastest
growing sectors in shipping, benefiting from a shift in cargo transport to unitization.

The type of vessel deployed on a certain route depends on the size and type of trade as
well as the port infrastructure. Typically large vessels serve routes between major ports,
while feeder vessels make connections between the major hub ports and regional ports.

The containers have standard dimensions and are made of steel. The standard measure of
units are the TEU, 20-foot Equivalent Unit which represents a 20 foot long container, and the
FEU, 40-foot Equivalent Unit which represents a 40 foot long container, both are typically
8.5 feet high and 8 feet wide. There are also high cube 40 and 45 foot containers, which
have the same width as the standard containers but are 9.5 feet high. Specialized containers
of all the sizes listed above exist: refrigerated containers are used for perishable goods and
tank containers are used to carry liquids such as liquefied gases, spirits or chemicals.

The use of high cube FEUs has increased as shippers can transport more lightweight
consumer goods in a single container at an overall lower cost. There are also 10-foot long
containers with the standard width and height, however they are less commonly used.

The growth of containerization over the past quarter century has been exponential.

2
Below are two graphs illustrating the increase in container trade and the growth of the
container fleet capacity.

Total Container Trade and Fleet Capacity

TEUs)
(Thousand TEUs)

Global
Global Container
2.000 20.000
20.000
1.800 18.000
18.000
Capacity (Thousand

Container Shipping
1.600 16.000
16.000
1.400 14.000
14.000
Fleet Capacity

Shipping Trade
1.200 12.000
12.000
1.000 10.000
10.000
Containership Fleet

Trade (Mln
800 8.000
8.000
Containership

600 6.000
6.000

(Mln Tonnes)
400 4.000
4.000

Tonnes)
200 2.000
2.000
0 00

Global Container Shipping Trade Containership Fleet Capacity Source:

Source: Company
Company data
data

The Multiplier Effect of Merchandise Trade as a Percentage of GDP

90.000
80.000.000 60

80.000
70.000.000

World
World Merchandise
50
70.000
60.000.000
Global GDP in US$ Billions
Global GDP in US$ Billions

Merchandise Trade
60.000 40
50.000.000
50.000
40.000.000 30
40.000
Trade (%

30.000.000
30.000 20
(% of

20.000.000
of GDP)

20.000
GDP)

10
10.000.000
10.000

-0 0
1960
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013

World Merchandise Trade (% *Merchandise trade as a share of GDP is the sum of

of GDP)* merchandise exports and imports divided by the
Global GDP in US$ Billions
value of GDP, all in current U.S. dollars.
Source: The World Bank

3
4
The Ship Management Company

1 The Scope of Ship Management

2 Opera ons Department

3 Crewing and Ticke ng Department

4 Supplies and Spares Department

S THE PRI
YI
OR
T

5 Marine, Safety & Quality Department

SAFE

ITY

SAFETY
QUALITY
QUA

RD
ND

TY
LI

IS T H E S T A

6 Technical Department

7 Chartering Department

8 Sale & Purchase Department

£
9 ¥ $ Finance Department
€

10 Accoun ng Department

11 Legal Department

12 Insurance Department

13 Administra on & HR Department

14 Informa on Systems Department

5
 Contships Management Inc.

6
 The Ship Management Company

1. The Scope of Ship Management

SHIP MANAGEMENT is the function that coordinates the shore-based and ship-based
operations of a vessel so as to ensure compliance with customer and regulatory
requirements relating to safety, security, and environmental protection, using the
available resources efficiently and effectively. The key goals and objectives of quality ship
management are to manage vessels safely and efficiently, to ensure the well-being of
the crews, to carry the cargoes promptly and safely to their destinations, to respect the
environment, and to safeguard the investment and interests of the principals.

In the last few decades it has become customary for ship-owners to employ third-
party managers for a number of ship-management functions. This is the result of new
regulations being introduced each year in connection to vessel manning and marine
personnel training, vessel maintenance and inspections, insurance, communications,
safety, pollution, and certification. The trend has been accelerated by non-traditional
investors entering shipping without management experience and by the owners of smaller
companies who find it difficult to survive in the present competitive business environment.
The management functions outsourced to third-party ship management companies can
vary from technical management of the vessels to crewing and crew training, compliance
with requirements for certification, insurance, new construction supervision, chartering,
accounting, sale and purchase of vessels, bunkering, provisioning, consultation, financial
services, and others.

Contships Management Inc. (“Contships Management” or the “Company”) is a ship

management company with the required experience, skills, and resources to render all
these services. The Company is registered in the Marshall Islands and has established its
operating office in Greece pursuant to the provisions of Law 89/1967 which provide special
dispensations for foreign companies operating in Greece. A ship-management agreement
is signed between each ship-owning company and Contships Management detailing the
governing terms and conditions.

Contships Management consists of the following departments: Operations, Crewing and

Ticketing, Supplies and Spares, Safety and Quality, Technical, Chartering, Sale and Purchase,
Administration and HR, Information Systems, Finance, Accounting, Legal, and Insurance.

7
 Each department within Contships Management is headed by a Manager, responsible for
planning, directing and coordinating the operations of the department, being accountable
for the efficient performance of the department. The corresponding Managers are
responsible for adhering to and carrying out the goals and objectives of the Company,
utilizing resources efficiently and effectively and where possible, improving systems
and mentoring departmental members in managing their career development and
progression. Income producing departments are responsible for increasing the resources
of the Company and developing policies.

The Managers of each department assume a key role in promoting cooperation between
the departments and the marine personnel onboard the vessels.

The Executive Committee (“EXCOM”) is comprised of ten key Managers and convenes at
least once a week to discuss important operational, technical or other matters relating
to the trading of the vessels, the implementation of the Company’s policies by the shore-
based and ship-based personnel.

The Chairman of the Executive Committee is the CEO. The other nine members are:

i. CFO
ii. COO
iii. Operations Manager
iv. Technical Manager
v. Chartering Manager
vi. Supplies & Spares Manager
vii. Accounting Manager
viii. Administration Manager
ix. Legal Manager

8
Operations Department

9
10
2. Operations Department

The Operations department has the responsibility for the safe and efficient operation
of the vessels, ensuring they perform without delays and off-hires (i.e. loss of income),
damages, etc. and that the cargo is delivered in a safe and efficient manner. The Operations
department is client-oriented and provides also post-fixture services to charterers.

The Operations department has the key task of coordinating all the departments, the
vessels, the charterers, the shippers, the consignees, the agents, the shipbrokers, and
any other party involved in the operation of the vessels who attend to the various
matters may arise at the ports of call of the vessels.

Efficiency in all cargo-related matters is the foundation of profitable vessel operations.

The Operations department provides the vessels with general information about their
trade, and liaises with other appropriate parties to ensure efficient cargo transportation
and operations. Vessels are also provided with guidelines for handling loss of cargo,
cargo claims, and other charter party disputes.

Prior to the conclusion of a charter party, the Operations department provides support
to the Chartering department on commercial, marine, and technical matters. All
relevant feedback is passed on to the Chartering department with the aim to assist in-
house brokers in seeking, negotiating, and concluding charter parties and other relevant
agreements for the employment of the vessels.

After the charter party is concluded, it is the duty of the Operations department to
transmit all necessary voyage instructions to the vessel in order to perform the obligations
of the ship-owner under the charter party.

The Operations department includes two additional sub-divisions: Bunkering and

Disbursements.

The Operations department is also responsible for (i) scheduling and planning the bunker
replenishment of the vessels i.e. the bunker quantity and purchase port for the bunkers
needed, conducting negotiations, and concluding the contracts of bunker supply, and
(ii) checking the pro-forma port disbursements and invoices of port expenses, as well as
fees and expenses for passages through canals, rivers or straits which require pilotage,
whether the vessel is on charter or not, or is being re-positioned by the owners.

11
12
Crewing and Ticketing Department

13
14
 &

3. Crewing and Ticketing Department

The Crewing departmentin coordination with the Operations department and the Marine,
The Crewing and Ticketing Department in coordination with the Operations department
Safety & Quality department is responsible for:
and the Safety & Quality department is responsible for:

i. Recruiting and appointing fully qualified, medically fit, and experienced

i. Recruiting and appointing fully qualified, medically fit, and experienced
seafarers onboard the managed vessels, according to the criteria set by
seafarers onboard the managed vessels, in conformity with relevant
Contships Management and in conformity with relevant provisions and
provisions
procedures;and procedures set by Contships Management;
ii.ii. Maintaining
Maintaining aa pool
pool of
of suitable, qualified, and
suitable, qualified, and medically
medically fit
fit seafarers
seafarers onon leave
leave
for
for rotation;
rotation;
iii.iii. Ensuring that the training procedures of the Company
Ensuring Company are
are properly
properly and
and fully
fully
implemented;
implemented;
iv.iv. Maintaining and
Maintaining and updating
updating proper
proper records
records ofof the
the seafarers
seafarers i.e.
i.e. personal
personal data,
data,
qualifications, training, evaluation, and appraisal.
qualifications, training, evaluation, and appraisal.

In addition, the department monitors the developments relating to international rules

In addition, the department monitors the developments relating to international rules and
and regulations, conventions, industry requirements, environmental issues, updating
regulations, conventions, industry requirements, environmental issues, updating relevant
relevant instructions and/or manuals as required, and communicating the above
instructions and/or manuals as required, and communicating the above information to
information to shore-based and ship-based personnel for familiarization and
shore-based and ship-based personnel for familiarization and compliance purposes.
compliance purposes.

The Operations Managers are responsible for appointing the marine personnel to vessels
The Operations Managers are responsible for appointing the marine personnel to
according to the to
vessels according relevant MLC, MLC,
the relevant STCWSTCWand and
flag flag
requirements.
requirements. Crew
Crew members
membershave havea
fixed
a fixedterm contract
term contract with thethe
with ship-owning company
ship-owning company of aofvessel and usually
a vessel originate
and usually from
originate
Greece, Philippines,
from Greece, and Eastern
Philippines, Europe.
and Eastern Additionally,
Europe. operators
Additionally, need to
operators needmaintain a group
to maintain a
of auxiliary
group crew members
of auxiliary on standby
crew members in case ainperson
on standby case a onboard needs to needs
person onboard be replaced.
to be
Finally, they
replaced. are responsible
Finally, they are for identifyingfor
responsible andidentifying
resolving potential crew member
and resolving potentialmatters.
crew
member matters.
The department is responsible for the scheduling and purchasing of airplane tickets at
The department
economical pricesisfor
responsible for the scheduling
the transportation of the crew andmembers
purchasing fromof their
airplane
home tickets at
country
economical prices for the transportation
to the embarkation/destination port andofvice
theversa.
crew members from their
The department home
is also country
responsible
forthe
to embarkation/destination
obtaining visas and coordinating portwith
andport
viceand
versa. The department
manning agents. is also responsible
for obtaining visas and coordinating with port and manning agents.
The MS&Q Crew Training Coordinator coordinates the on-going training and development
The MS&Q
plan of Crew personnel
ship-based Training and
Coordinator coordinates
collaborates the on-going
with the Safety and Qualitytraining and
department
development plan of ship-based personnel and collaborates with the Marine, Safety and
and the Superintendent Engineers of the Technical department so as to organize training
Quality department and the Superintendent Engineers of the Technical department
seminars onboard and ashore.
so as to organize training seminars onboard and ashore.

15
16
Supplies and Spares Department

17
18
 &

4. Supplies and Spares Department

The Supplies and Spares department is responsible for purchasing and freight forwarding
The Supplies and Spares department is responsible for purchasing and freight forwarding
all stores, provisions, supplies, equipment, spares and services needed by the vessel and
all stores, provisions, supplies, equipment, spares and services needed by the vessel and
its crew, in the most cost-efficient and expedient manner, while ensuring necessary
its crew, in the most cost-efficient and expedient manner, while ensuring necessary quality
quality standards are maintained.
standards are maintained.
These requisitions are procured from around the world and from various approved
suppliers
These in order toare
requisitions achieve competitive
procured prices. The
from around the range
world ofand
products
from needed
various isapproved
large so
the products
suppliers are classified
in order to achieveaccording to the
competitive following
prices. three
The range of sections:
products the Ship-supply
needed is large
section, the Contracted items section and the Spares section.
so the products are classified according to the following three sections: the Ship-supply
section, the Contracted items section and the Spares section.
The Supplies and Spares Manager reviews the terms and charges of every invoice, which
is submitted for final approval and forwarded to the Accounting department for
The Supplies and Spares Manager reviews the terms and charges of every invoice, which
executing the payment. For each requisition, the Supplies and Spares Manager ensures
is submitted for final approval and forwarded to the Accounting department for executing
that a number of different quotations for the same quality and delivery are obtained
the payment. For each requisition, the Supplies and Spares Manager ensures that a
when possible in order to achieve a competitive bidding process.
number of different quotations for the same quality and delivery are obtained when
possible in order to achieve a competitive bidding process.
Market research, including negotiation for the best terms and discounts, interviewing
and meeting with suppliers, are all routine tasks for the Supplies and Spares Department.
Market research, including negotiation for the best terms and discounts, interviewing
The Supplies and Spares Manager is responsible for producing the relevant budgets and
and
KPI’smeeting withand
to monitor suppliers, are all routine tasks for the Supplies and Spares Department.
assess performance.
The Supplies and Spares Manager is responsible for producing the relevant budgets and
KPI’s to monitor
All material and are
needs assess performance.
originally generated from the respective vessel, reviewed and
approved by the Manager of each relevant department and then passed on to the
All material
Supplies and needs
Sparesare originallyfor
department generated from the respective vessel, reviewed and
processing.
approved by the Manager of each relevant department and then passed on to the
Supplies and Spares department for processing.

The requisition, ordering, and approval process by Technical & MS&Q department
must be separated from the commercial enquiry and supply process, thus increasing
the transparency and improving efficiency through specialization.

The requisition, ordering, and approval process by the Technical and MS&Q departments
must be separated from the commercial enquiry and supply process, thus increasing the
transparency and improving efficiency through specialization.

19
20
 IS THE PRI
Y

OR
T
SAFE

ITY
SAFETY
QUALITY
QUA

RD
TY ND
LI

IS T H E S T A

Marine, Safety & Quality Department

21
22
 &&
&

5.5.Marine,
Marine,Safety
Safety&&Quality
QualityDepartment
Department

The Marine, Safety and Quality (MS&Q) department is responsible for implementing the
The Marine, Safety and Quality (MS&Q) department is responsible for implementing
Safety, Health, and Environmental Protection policy of Contships Management. The
the Safety, Health, and Environmental Protection Policy of Contships Management.
department consists of Certified Officers with marine background, each of whom is
The department
responsible for aconsists
numberofofCertified
vessels. Officers
The Head with
of marine background,
the department each
is the of whom
Designated
isPerson
responsible
Ashorefor a number
(DPA) under of
thevessels. The Head
International of Management
Safety the department
Codeis the Designated
(ISM) and he is
Person Ashore
the direct (DPA) under
link between the and
vessels International Safety Management Code (ISM) and he is
top management
the direct link between vessels and top management.
In particular, the MS&Q department coordinates and controls the implementation of the
InSafety
particular, the MS&Q
Management department
System coordinates
(SMS), which and controls the implementation of the
includes:
Safety Management System (SMS), which includes:
i. Instructions and procedures for crews to ensure safe operation and
i. protectionand
Instructions of the environment
procedures at all times;
for crews to ensure safe operation and protection
ii. of the
Instructions and procedures
environment at all times; for proper ship and equipment maintenance and
ii. operation;and procedures for proper ship and equipment maintenance and
Instructions
Instructions and procedures for effective monitoring of cargo operations,
iii. operation;
cargo protection, and voyage management;
iii. Instructions and procedures for effective monitoring of cargo operations, cargo
iv. Instructions and procedures for effective communication and document
protection, and voyage management;
control;
iv. Instructions and procedures for effective communication and document control;
v. Defined levels of authority and responsibility and required crew qualifications
v. Defined levels of authority and responsibility and required crew qualifications
onboard;
onboard;
vi. Procedures for handling and reporting emergency, accident, and non-
vi. Procedures for handling and reporting emergency, accident, and non-conformity
conformity situations, including preparation for and response to emergency
situations, including preparation for and response to emergency situations;
situations;
vii.vii. Procedures for for
Procedures carrying outout
carrying safety inspections
safety andand
inspections audits;
audits;
viii.
viii. Procedures
Proceduresforfor
review and
review andimprovement,
improvement,incorporating
incorporatinganalysis
analysis of
of third party
third party
inspections feedback;
inspections feedback;
ix. ix. Oversight and and
Oversight alignment of procedures
alignment within within
of procedures the SMSthe
andSMS
compliance thereto;
and compliance
x. Arranging
thereto;and coordinating certification audits and issuance of the relevant
x. DOC,
Arranging
SMC, ISSC,andMLC
coordinating certification audits and issuance of the relevant
certificates;
DOC, SMC,
xi. Carrying ISSC, MLC
out safety, certificates;
security audits, and drills onboard the vessels and onshore
xi. by means
Carrying out safety, security
of desktop exercises; audits, and drills onboard the vessels and
onshore
xii. Planning andby means of desktop
authorization of exercises;
inspections of the vessels by classification
xii. societies,
Planning and authorization of inspections
flag authorities, and potential of behalf
vetting on the vessels by classification
of the charterers;
societies, flag authorities, and/or potential vetting on behalf of the
xiii. Identifying training needs and implementation of a training plan for onboard
charterers;
and onshore personnel.
xiv. Monitoring all forthcoming legislation and requirements and prepare staff on
board and ashore accordingly.

23
 Thexiii.
dedicated departmental
Identifying trainingteam
needsoversees the vessels toofensure
and implementation theyplan
a training comply with the
for onboard
SMS of theand
Company along
onshore with all national and international rules and regulations at least
personnel.
xiv.a year.
twice Monitoring all forthcoming legislation and requirements and prepare
company’s staff on board and ashore accordingly.
Areas of improvement identified during the attendance of the vessels are investigated and
The dedicated departmental team oversees the vessels to ensure they comply with the
followed up promptly in order to promote continued improvement and minimization of
SMS of the Company along with all national and international rules and regulations at
risk during
least twice atheir
year.daily operations. The MS&Q department is responsible for collecting all
necessary information required for the preparation and implementation of the Management
Areas
Reviewofofimprovement
the Companyidentified during out
which is carried the at
attendance
least onceofa the
year.vessels are investigated
The department is also
and followed
responsible for up promptly
the follow in order
up and to promote ofcontinued
the implementation improvement
the set goals defined by andthe
minimization of risk during their daily operations. The MS&Q department
Management Review. Also Safety Meetings are conducted at frequent intervals. is responsible
in collecting all necessary information required for the preparation and implementation
of the Management Review of the Company which is carried out at least once a year.
The DPA performs a central function within the organization in supporting, promoting,
The department is also responsible for the follow up and the implementation of the set
and administering the effective implementation of the SMS. He has direct access to the
goals defined by the Management Review. Also Safety Meetings are conducted at
EXCOM and to the CEO. His responsibilities and duties are as follows:
frequent intervals.

i. To ensure that the SMS of the Company is effectively implemented and maintained;
Theii.DPA To
performs
promotea central function
awareness within the
to all seagoing organization
staff into
of the need supporting, promoting,
operate the vessels to
and administering the effective implementation of the SMS. He has direct access
the industry standards consistent with International and National Legislation to and
the
EXCOM and to theto
according CEO. His responsibilities
the SMS of the Company;and duties are as follows:
iii. To ensure that the requirements of the ISM Code are implemented and
i. maintained;
To ensure that the SMS of the Company is effectively implemented and
maintained;
iv. To serve as the communication link between the ship and the Head Office with
ii. To promote awareness to all seagoing staff of the need to operate the vessels
regards to all matters of Safety, Health, and Environmental Protection;
to the industry standards consistent with International and National
v. ToLegislation
monitor all and
Safety and Pollution
according Prevention
to the aspects
SMS of the of the operation of each ship;
Company;
vi.iii. ToToreport to the
ensure Management
that all safetyofproblems
the requirements identified in
the International the implementation
Safety Management
of Code (ISM
the SMS ofCode) are implemented and maintained;
the Company;
vii.iv. ToToensure
serve all
as the
the communication
shore-based andlinkship-based
between the
staffship and the Head
understand, Office
accept, and
with regards to all matters of Safety, Health, and
implement the policies and the SMS of the Company; Environmental Protection;

viii.v. ToTo monitor

ensure all Safety
adequate and Pollution
resources Prevention
and shore-based aspects
support of the operation
are available of
and supplied
each ship;
by the Company for the implementation of the SMS of the Company;
vi. To report to the top Management all safety problems identified in the
ix. To ensure full investigations of all accidents and dangerous occurrences reported,
implementation of the SMS of the Company;
and prepare periodic evaluation of such occurrences and present these to the
vii. To ensure all the shore-based and ship-based staff understand, accept, and
Management
implement ofthethe Company;
policies and the SMS of the Company;
x.viii. ToTo
monitor
ensureand record non-conformities
adequate resources and and deficiencies
shore-based identified
support are so as to ensure
available and
thesupplied
timely close-out of non-conformities
by the Company and report them
for the implementation of theorsystem;
any other problem of
ix. theToimplementation of the SMS to the
ensure full investigations Management
of all accidents of thedangerous
and Company; occurrences
reported, and prepare periodic evaluation of such occurrences and present
these to the Management of the Company;

24
 xi.x. To
Tomonitor
monitorwhether corrective
and record and preventive
non-conformities andactions are correctly
deficiencies applied
identified so asand
to
ensure the timely close-out of non-conformities
verify effectiveness of such actions; and report them or any other
problem of the implementation of the SMS to the Management of the
xii. To periodically analyze all audit results and present the findings to the
Company;
Management of the Company;
xi. To monitor whether corrective and preventive actions are correctly applied
xiii. To improve
and the SMS of the
verify effectiveness ofCompany;
such actions;
xiv.
xii. To
To organize and analyze
periodically coordinate
all the
auditManagement
results and Review
presentMeetings, prepare
the findings the
to the
Management
agenda, and keepof the Company;
minutes during the meetings;
xiii.
xv. Tomonitor
To improveregulatory
the SMS ofand
thepractical
Company; developments in matters of safety, health
xiv. and environmental
To organize protectionthe
and coordinate for Management
timely implementation by the Company;
Review Meetings, prepare the
xvi. agenda, and keep minutes during the meetings;
To prepare the schedules for drills and internal audits according to documented
xv. To monitorand
procedures regulatory and practical
ensure that developments
responsible in matters
parties are notified of safety, health
in advance;
and environmental protection for timely implementation by the Company;
xvii. To supervise the program of Internal and External Audits within the office
xvi. To prepare the schedules for drills and internal audits according to
and onboard all vessels, to monitor the timely implementation of all drills and
documented procedures and ensure that responsible parties are notified in
audits of the Company and the vessels and to ensure that audit results are
advance;
xvii. reported to thethe
To supervise Management
program ofof the Company;
Internal & External Audits within the office and
onboard
xviii. To ensureallthat
vessels,
the to monitor documents
controlled the timely implementation
of the Company of all
aredrills and
properly
audits of and
approved the authorized
Company and
priorthe vessels and to ensure that audit results are
to issue;
reported to the Management of the Company;
xix. To carry out revisions and amendments to controlled documents;
xviii. To ensure that the controlled documents of the Company are properly
xx. To organizeand/or
approved and authorized
monitor distribution of the controlled documents of the
prior to issue;
xix. Company;
To carry out revisions and amendments to controlled documents;
xxi.
xx. To
Tomonitor all and
organize the reporting
monitor requirements
distribution ofofthe
the controlled
SMS for thedocuments
vessels. of the
Company;
Emergency
Thexxi. Response
To monitor Team
all the is comprised
reporting of the CEO,
requirements of theCFO,
SMSCOO, DPA
for the the Operations
ships.
Manager, the MS&Q Manager, the Technical Manager, the Insurance Manager and the
Legal Manager and convenes in case of emergency so as to intervene immediately and
The Emergency
protect Response
the vessel, Team
the crew, is cargo,
the comprised of the CEO,and
the charterers CFO,any
COO, DPAparty
other the Operations
involved in
Manager, the MS&Q Manager, the Technical Manager, the Insurance Manager and the
the operation of the vessel. The team coordinates the interaction of the departments
Legal Manager and convenes in case of emergency so as to intervene immediately and
and liaises with insurers, authorities, the classification society, flag state, lawyers,
protect the vessel, the crew, the cargo, the charterers and any other party involved in
surveyors, experts and any other third party, as the case may be, so as to overcome any
the operation of the vessel. The team coordinates the interaction of the departments
emergency
and liaises or incident
with involving
insurers, a managed
authorities, thevessel.
classification society, lawyers, surveyors,
experts and any other third party, as the case may be, so as to overcome any emergency
or incident involving a managed vessel.

25
26
Technical Department

27
28
6.
6. Technical
Technical Department
Department

The Technical department is responsible for monitoring and advising both deck and
The Technical department is responsible for monitoring and advising both deck and engine
engine crew in order to maintain the main engine, auxiliary machineries and electrical
crew in order to maintain the main engine, auxiliary machineries and electrical equipment
equipment of the vessels in satisfactory working condition, so that the vessels are always
of the vessels in satisfactory working condition, so that the vessels are always seaworthy
seaworthy and able to perform their main function of carrying goods safely and cost-
and able to perform their main function of carrying goods safely and cost-efficiently while
efficiently while minimizing the cases where the vessels are not available for operation
minimizing the cases
(off-hire). Due to thewhere
toughthe vessels are
schedule not available
of Container for operation
vessels, (off-hire).
time required for Due
deck,togear
the
tough schedule
and cargo holdofmaintenance
container ships, time required
is challenging andfor deck, gear
therefore and
it is cargocarried
usually hold maintenance
out during
isdrychallenging and therefore
dock or special survey. it is usually carried out during dry dock or special survey.

In particular, the Technical department coordinates and has responsibility for the
In particular, the Technical department coordinates and has responsibility for the
following areas:
following areas:

i. Ensuring compliance with National and International legislation, industry

standards as well as with Company’s policies and procedures;
i. Ensuring compliance with National and International legislation, industry
standards as well as with Company’s policies and procedures;
ii. Planning required maintenance of machineries and carrying them out promptly
and efficiently. This is directly affected by the time available for maintenance as
ii. Planning required maintenance of machineries and carrying them out
well as spare parts availability;
promptly and efficiently. This is directly affected by the time available for
maintenance as well as spare parts availability;
iii. Monitoring the efficiency of the vessels fuel and lube oil consumptions and
iii. analyse the operational
Monitoring performance
the efficiency in order
of the vessels toand
fuel further
lubeimprove and minimize
oil consumptions and
adverse variances,
analyse always in cooperation
the operational performance with
in the Operations
order department;
to further improve and
minimize adverse variances, always in cooperation with the Operations
iv. department;
Vetting the technical condition of second-hand vessels which are candidates for
coming under the management of Contships Management;
iv. Vetting the technical condition of second-hand vessels which are candidates
v. for coming
Assessing and under the management
amending Contships Management;
the technicalofspecifications of the new-build vessels,
approving their plan, and following up on their construction and delivery;
v. Assessing and amending the technical specifications of the new-build
vessels, all
vi. Monitoring approving their plan,
the classification and following
certificates up on their
of the vessels, construction
arranging and
and planning
delivery;
surveys in order to re-issue and renew the relevant certificates that are due to expire.

vi. Monitoring all the classification certificates of the ships, arranging and
Every Technical Manager is responsible for a number of container vessels. Some of the
planning surveys in order to re-issue and renew the relevant certificates that
responsibilities of the Technical department are shared with the MS&Q department,
are due to expire.
in particular for issues associated with safety certificates and safety awareness of the
vessel and the crew.

29
 Specifically,
Every the Manager
Technical responsibilities of the Technical
is responsible Managers
for a number include: vessels. Some of the
of container
responsibilities of the Technical department are shared with the MS&Q department, in
i.
particularCommunicating and dealing
for issues associated withwith issues
safety of repairs and
certificates or replacements (i.e. problems
safety awareness of the
vessel andwith
thehull and machinery), spare parts, and with the renewal of certificates for
crew.
each vessel. They are responsible for reviewing and analyzing data received
from
Specifically, thethe Chief Engineerofand
responsibilities thehis team. This
Technical enables include:
Managers the identification of potential
technical issues which require further attention, such as cleaning the hull and
propeller, increased fuel and lubricant consumptions, etc;
i. Communicating and dealing with issues of repairs or replacements (i.e.
problems with hull and/or machinery), spare parts, and with the renewal of
ii. Attending to the onboard surveys from Classification Societies for both hull and
certificates for each vessel. They are responsible for reviewing and analyzing
machinery condition
data received frominspections
the Chiefand for procedures
Engineer and his like ISM.
team. Discussing
This enables with
the
attending class surveyors possible solutions for identified issues. Major
identification of potential technical issues which require further attention, repairs
and
suchmodifications
as cleaningshould be discussed
the hull and approved
and propeller, increasedbyfuel
theand
Classification
lubricant
Societies. The latter
consumptions, etc; is a pre-requisite in order to maintain the trading
certificates and insurance policy of the vessels;
ii. Attending to the onboard surveys from Classification Societies for both hull
iii. and machinery
Participating in condition
seminars inspections
to informand for procedures
officers like ISM. Discussing
about regulatory updates,
with attending
experience class
gained, surveyors
major possible
incidents solutions forprocedure
and break-downs, identified amendments,
issues. Major
repairstrends,
industry and etc;
modifications should be discussed and approved by the
Classification Societies. The latter is a pre-requisite in order to maintain the
trading certificates and insurance policy of the vessels;
iv. Performing internal audits and assessing the condition of the vessels through
visits at least biannually and being on-site in emergency situations;
iii. Participating in seminars to inform officers about regulatory updates,
experience gained, major incidents and break-downs, procedure
v. Preparing and monitoring
amendments, the budget
industry trends, etc; and the schedule of the repairs carried
out during the dry docking or afloat. Comparing cost analysis from various
iv. shipyards
Performingand internal
suppliers, evaluating
audits the quality
and assessing of services
the condition of and the spare
the vessels parts
through
offered and
visits at cross-checking
least with
biannually and theon-site
being attending Superintendent
in emergency Engineers that
situations;
works are carried out according to the agreements. In the event that works are
v. notPreparing
carried out
andas agreed orthe
monitoring thebudget
supplied
andspare parts areoffound
the schedule defective
the repairs and
carried
failout during
during the dry the
operation, docking or afloat.
Technical Comparing
Managers cost analysis
must prepare fromupvarious
and draw claims
shipyards
against and suppliers,
shipyards evaluating
and suppliers the quality
in cooperation of the
with services
Legaland the spare parts
department;
offered and cross-checking with the attending Superintendent Engineers that
works are carried out according to the agreements. In the event that works
vi. Co-operating with the Legal department in gathering evidence and all
are not carried out as agreed or the supplied spare parts are found defective
necessary items in order to draw up claims and recover repair expenses from
and fail during operation, the Technical Managers must prepare and draw up
insurance companies;
claims against shipyards and suppliers in cooperation with the Legal
department;
vii. Advising on issues regarding engine performance and review. Preparing crew
vi. appraisal for bothwith
Co-operating deckthe
and Legal
enginedepartment
departments;
in gathering evidence and all
necessary items in order to draw up claims and recover repair expenses from
insurance companies;

30
Planned Maintenance System (PMS) team being a division of the Technical department
reports to the Technical Manager. This system is put in place so as to improve the planning,
scheduling,
vii. and reviewing
Advising of theregarding
on issues maintenance intervals
engine accordingand
performance to the requirements
review. of
Preparing
crew appraisal
the manufacturers and the for and engine departments Planned Maintenance
both deckSocieties.
Classification
System (PMS) team being a division of the Technical department reports to
the Technical Manager. This system is put in place so as to improve the
planning, scheduling, and reviewing of the maintenance intervals according
to the requirements of the manufacturers and the Classification Societies.

The PMS team is responsible for creating and maintaining the PMS database on a Technical
Control Application (TCA) according to the Company policy. They create new systems,
sub-systems, and jobs as required, as well as check and review already existing jobs on
TCA The PMSmain
for the teamauxiliary
is responsible for creating
machineries and items
and safety maintaining
of the the PMSaccording
vessels databasetoonthe
a
Technicalschedule
maintenance Control Application (TCA) according
of the manufacturers, to the Companyofpolicy.
the recommendations They create
the Superintendent
new systems,
Engineers, and the sub-systems, and jobsThey
Company policy. as required,
maintainas well
a logasof
check
the and review
main already
machineries’
existing jobs on TCA for the main auxiliary machineries and safety items of the
total running hours. They update the jobs performed as reported in VM-forms (vessel
vessels according to the maintenance schedule of the manufacturers, the
messages), reports of the Superintendent Engineers, or by shore-based technicians that
recommendations of the Superintendent Engineers, and the Company policy. They
visit the vessels for repairs. The team follows-up on the correspondence with the vessels in
maintain a log of the main machineries’ total running hours. They update the jobs
caseperformed
of missing forms
as or incorrectininput.
reported VM-forms (vessel messages), reports of the
Superintendent Engineers, or by shore-based technicians that visit the vessels for
Contships
repairs.Management’s technicalon
The team follows-up superintendents are wellwith
the correspondence trained
the and haveinextensive
vessels case of
experience
missingin the technical
forms management
or incorrect input. of container vessels.

Contships Management’s technical superintendents are well trained and have extensive
experience in the technical management of container vessels.

31
32
Chartering Department

33
34
7. Chartering Department

The Chartering department

department isis responsible
responsible for
for the
the chartering
chartering ofofthe
thevessels
ships under
management, which involves:
is achieved by:

i. Fixing a vessel on period contract (time charter);

i. Fixing a vessel on period contract (time charter);
ii.ii. Charter
Charter hire
hire collection.
collection.

It is the duty of the Chartering department to ensure that employment provided for the
ships
vesselsis isgenerating
generatingthe themaximum
maximumpossible
possiblerevenue,
revenue,always
alwaystaking
taking into
into consideration
consideration the
position, the
position, the size and the specifications of each vessel along with the market conditions.
size and the specifications of each ship along with the market conditions.
The department has the additional responsibility of negotiating and agreeing all charter
The department has the additional responsibility of negotiating and agreeing all charter
party terms and conditions of all fixtures concluded, when necessary requesting the
party terms
support and departments
of other conditions of(i.e.
all Operations
fixtures concluded,
which links when necessary
Chartering withrequesting the
other support
support of other
departments). Thedepartments
Operations (i.e. Operations
department which
plays a keylinks
roleChartering with other
for Chartering, as thesupport
service
offered to clients is not only the ship but also its smooth and cost effective
departments). The Operations department plays a key role for Chartering, as the service operation.
offered to clients is not only the vessel but also its smooth and cost effective operation.
A number of container vessels are allocated to each in-house broker. The expertise of
the brokersofis container
A number not limitedvessels
to specific geographical
are allocated regions.
to each Brokers
in-house continuously
broker. seek to
The expertise of
retrieve
the brokers information and follow
is not limited closely
to specific all market regions.
geographical regions. Brokers continuously seek to
retrieve information and follow closely all market regions.
The Chartering department is also responsible for the charter hire collection. The charter
The Chartering
hire department
collection function is alsothe
includes responsible
follow-upfor thehandling
and charter hire collection.
of the The charter
hire collection and
hire collection function includes the follow-up
any other charter party disputes or claims. and handling of the hire collection and any
other charter party disputes or claims.
Contships Management’s “in-house” brokers have:
Good knowledge
Contships of the characteristics
Management’s of the ships
“in-house” brokers have:which they are responsible for i.e.
TEU capacity (Twenty Foot Equivalent Unit), Deadweight (“Dwt”), reefer capacity, fuel
consumption,
Good knowledge speed, etc.characteristics of the vessels which they are responsible for i.e.
of the
TEU capacity (Twenty Foot Equivalent Unit), Deadweight (“Dwt”), reefer capacity, fuel
i. Excellent marketing skills to successfully promote the ship;
consumption,
ii. Thespeed,
abilityetc.
to assess and compare different trades on the basis of calculation
of daily earnings, while taking into account the final destination of the vessel,
i. Excellent marketing skills to successfully promote the vessel;
duration of the charter and current market conditions;
ii. The ability to assess and compare different trades on the basis of calculation
iii. In depth understanding of charter parties and their clauses.
of daily earnings, while taking into account the final destination of the vessel,
duration of the charter and current market conditions;
Theiii.
Chartering
In depthdepartment also of
understanding provides
charter guidelines
parties andto other
their departments, especially
clauses.
to the Operations and Legal departments regarding the policy of handling matters or
The Chartering
disputes relateddepartment also provides
to the performance guidelines
of various to other departments, especially
charters.
to the Operations and Legal departments regarding the policy of handling matters or
disputes related to the performance of charters.

35
36
Sale & Purchase Department

37
38
 &

8. Sale & Purchase Department

The Sale & Purchase Manager is responsible for providing related services for the owners
of the vessels under management and is fully involved in the sale and purchase process
from seeking acquisition and sale opportunities to final documentation.

Such services include:

i. Monitoring the vessel sale and purchase market;

ii. Maintaining a network of shipbrokers and direct clients;

iii. Scouting for market opportunities through contacts with sale and purchase
brokers, ship-owners, shipyards, etc;

iv. Assessing and evaluating vessel values;

v. Marketing vessels for sale;

vi. Managing relationships with sale and purchase channels i.e. competitive brokers
and banks;

vii. Negotiating sale and purchase transactions;

viii. Administering and documenting sale and purchase contracts (MOAs).

The Sale & Purchase Manager has in-depth knowledge of standard MOA forms such
as BIMCO’s Saleform 2012 and earlier versions. The Sale & Purchase Manager reports
directly to the CEO.
39
40
 £
¥ $
€

Finance Department

41
42
9. Finance
9. Finance Department
Department

The Finance
The Finance department
department is
is headed
headed by
by the
the Chief
Chief Financial
Financial Officer (CFO) and
Officer (CFO) and is
is responsible
responsible
for the
for the following
following functions:
functions:

i.i. Implementingthe
Implementing financialstrategy
thefinancial strategyofofthe
theCompany,
company, evaluating
evaluating the
the capital
capital
requirements, maintaining relationships with banks, financial institutions,
requirements, maintaining relationships with banks, financial institutions,
investment funds and keeping up with developments in the capital markets, as
investment funds and keeping
well as supporting up with indevelopments
shareholders in the capital
shipping investment markets,and
decisions as
monitoring
well theshareholders
as supporting development of policies,
in shipping procedures
investment decisionsand supporting
and monitoring
theinformation
development systems of procedures
of policies, the budgeting, accounting
and supporting and financial
information systemsrisk
of
management functions;
the budgeting, accounting and financial risk management functions;
ii. Executing financial reporting that is reporting to management, shareholders,
ii. Executing financial reporting that is reporting to management, shareholders,
financial institutions and authorities. The reports of the Finance department
financial institutions
include, and authorities.
among other The reports
things, valuation andofinvestment
the Financeanalysis
department
for include,
vessels,
among other things,
performance valuation
analysis and results,
of financial investment
etc; analysis for vessels, performance
analysis of financial results, etc;
iii. Carrying out treasury and financial risk management, providing guidance to
iii. the Accounting
Carrying department
out treasury on cashrisk
and financial management, negotiating
management, providingand procuring
guidance to
financing for new projects, monitoring financial risk areas and implementing
the Accounting department on cash management, negotiating and procuring
the hedging strategy of the Company;
financing for new projects, monitoring financial risk areas and implementing the
iv. hedging strategy
Carrying of thebudgeting
out the Company;process which includes interpreting budget
guidelines from shareholders, assisting departments to prepare the annual
iv. Carrying
budgets, the budgeting
out preparing and process whichthe
monitoring includes interpreting
performance budget guidelines
of budgeted figures
versus
from actual results,
shareholders, following-up
assisting on significant
departments variances
to prepare theand recommending
annual budgets,
improvements
preparing and revisions
and monitoring the to the budgets;of budgeted figures versus actual
performance
results, following-up on significant variances and recommending improvements
v. Overseeing the Accounting department in the preparation of the financial
and making revisions
statements, to the budgets;
encouraging departmental improvement initiatives, monitoring
accounting policies, recommending and approving the financial statements
v. Overseeing
and liaisingthe Accounting
with department in the preparation of the financial
the auditors;
statements, encouraging departmental improvement initiatives, monitoring
vi. Implementing
accounting taxrecommending
policies, strategy whichand
includes tax the
approving planning andstatements
financial management,
and
including keeping up-to-date with international and local shipping tax related
liaising with the auditors;
aspects, adhering to tax regulations, monitoring and implementing the tax
vi. strategy
Implementing of the
taxCompany;
strategy which includes tax planning and management,
including keeping up-to-date with international and local shipping tax related
vii. aspects, adhering
Compliance with to
thetax regulations,
provisions monitoring
of the and implementing
loan agreements the tax
and other financing
documentation.
strategy of the Company;

vii. Compliance with the provisions of the loan agreements and other financing
documentation.

43
44
Accounting Department

45
46
10. Accounting Department

The Accounting department provides accounting services to the ship-owning companies

The Accounting department provides accounting services to the ship-owning companies
and maintains the books of the Company, in accordance with accounting standards
and maintains the books of the Company, in accordance with accounting standards
applied in the shipping industry. The major business functions which determine the
applied in the shipping industry. The major business functions of the Accounting
structure of the Accounting department are the following:
department are the following:

i. Purchases and Payables;

i. Purchases and Payables;
ii.ii. Revenue
Revenue
andand Receivables;
Receivables;
iii.iii. Property andand
Property Equipment;
Equipment;
iv.iv. Payroll;
Payroll;
v. Inventory;
v. Inventory;
vi. Treasury Operations;
vi. Treasury Operations;
vii. Banks Reconciliation;
vii. Loan
viii. Banks Reconciliation;
Administration;
ix.viii. Taxes andAdministration;
Loan Contributions;
x.ix. Masters’
Taxes General Account (“MGA”);
and Contributions;
xi. Financial Statements;
x. Masters’ General Account (“MGA”);
xii. Greek Law 89/1967 Books.
xi. Financial Statements;
xii.the provisions
Under Greek Law 89/1967 Books.
of the Law 89/1967 and other related laws, ship management
companies and ship-owning companies operate under a specific fiscal framework of the
tonnagethe
Under taxprovisions
system andofthe
theincome-tax exemption
Law 89/1967 regime.
and other related laws, ship management
companies and ship-owning companies operate under a specific of
The Accounting department is responsible for the processing worldwide
fiscal economic
framework of the
transactions
tonnage expressed
tax system in income-tax
and the various currencies,
exemption depending
regime. on the country where the
transaction took place. The base currency of the book keeping and reporting is the US
Dollar, however other currencies may be used.
The Accounting department is responsible for the processing of worldwide economic
transactions expressed in various currencies, depending on the country where the
The main source
transaction of income
took place. of the
The base ship-owning
currency companies
of the book keepingisand
thereporting
charter hire
is thefrom
US
shipping
Dollar, transportation,
however as wellmay
other currencies as be
other income deriving from the charter parties
used.
executed between the charterer and the ship-owning company. Expenses related
to the operation of the vessels include marine personnel wages and contributions,
The main source of income of the ship-owning companies is the charter hire from
insurance expenses, repairs and maintenance, consumable, supplies and spares.
shipping transportation, as well as other income deriving from the charter parties
executed between the charterer and the ship-owning company. Expenses related to
the operation of the vessels include marine personnel wages and contributions,
insurance expenses, repairs and maintenance, consumable, stores and spares.

47
 The income of the ship management company is the management fee which is charged
to the ship-owning companies on a monthly basis. Expenses related to the operation
of the ship management company include personnel wages and contributions, building
expenses, telecommunication expenses, general administrative expenses, etc.

The income of the ship management company is the management fee which is charged
The Accounting department is also responsible for the preparation of the financial
to the ship-owning companies on a monthly basis. Expenses related to the operation of
statements of the vessels under management on a monthly, quarterly or annual basis.
the ship management company include personnel wages and contributions, building
The monthly and quarterly reports are produced for internal management purposes
expenses, telecommunication expenses, general administrative expenses, etc.
and for the shareholders of the ship-owning companies and the annual financial
statements are produced for the shareholders and financial institutions including banks.
The Accounting department is also responsible for the preparation of the financial
Annual financial statements are usually audited by one of the major auditing firms.
statements of the vessels under management on a monthly, quarterly or annual basis.
The Accounting department provides assistance to the auditors.
The monthly and quarterly reports are produced for internal management purposes and
for the shareholders of the ship-owning companies and the annual financial statements
The Accounting department also provides a reconciliation of the charter results
are produced for the shareholders and financial institutions including banks. Annual
produced by the Chartering department which calculates the operating profit of the
financial statements are usually audited by one of the major auditing firms. The
vessels perdepartment
Accounting charter, which equals
provides the gross
assistance income
to the of each charter reduced by the
auditors.
owners expenses (i.e. commissions, bunkers and port disbursements for owners’
account) and by the running expenses (i.e. crew wages, insurance premiums, repairs,
The Accounting department also provides a reconciliation of the charter results
maintenance, certificates, stores, spares, etc.) related to each charter.
produced by the Chartering department which calculates the operating profit of the
vessels per charter, which equals the gross income of each charter reduced by the
The Accounting department is also responsible for the payroll and all other compensation
owners expenses (i.e. commissions, bunkers and port disbursements for owners’
matters.
account) and by the running expenses (i.e. crew wages, insurance premiums, repairs,
maintenance, certificates, stores, spares, etc.) related to each charter.
In terms of compliance with the provisions of Law 89/1967 and the other related
laws and regulations, the Accounting department reports the financial transactions
The Accounting department is also responsible for coordinating on a regular basis, along
performed by the Company in Greece in the “Income and Expenses Book”. This
with the payroll, all practical compensation matters.
accounting book shows the USD/EUR currency conversions and the expenses that are
incurred in Greece, being either administrative expenses of Contships Management or
In terms of compliance with the provisions of Law 89/1967 and the other related laws
operating expenses of the vessels such as spares supplied or services rendered to vessels
and regulations, the Accounting department reports the financial transactions
by Greek suppliers at Greek ports.
performed by the Company in Greece in the “Income and Expenses Book”. This
accounting book shows the USD/EUR currency conversions and the expenses that
occurred in Greece, being either administrative expenses of Contships Management or
operating expenses of the vessels such as spares supplied or services rendered to vessels
by Greek suppliers at Greek ports.

48
Legal Department

49
50
 11.Legal
11. LegalDepartment
Department

The lawyers of the Company provide legal advice and deal often in collaboration with
The lawyers
external of thewith
lawyers, Company provide related
legal matters legal advice
to theand deal often
activities in collaboration
of the ship management with
external
companylawyers,
and thewith legalunder
vessels matters related to They
management. the activities of the ship
handle disputes, management
claims and other
company and the with
issues associated vessels under i.e.
contracts management. They handle
freight, demurrage disputes,
and defense, claims
Bills and other
of Lading, sale-
issues associated with contracts i.e. freight, demurrage and defense,
purchase agreements (MOA and with accidents and other incidents that require legal Bills of Lading,
sale-purchase
handling suchagreements
as collisions, (MOA) and average,
general with accidents andarrests,
salvage, other incidents that require
loss of cargo, labour
legal handling
disputes, suchand
injuries as any
collisions, general claim
other dispute, average, salvage,
or issue. arrests, loss
Contractual of cargo,
disputes labour
are usually
governedinjuries
disputes, by English
andlawanyand
otherreferred
dispute,to claim
Arbitration Tribunals
or issue. in London.
Contractual The are
disputes lawyers of
usually
the Company
governed maintain
by English relationships
law and referred to with major national
Arbitration Tribunalsandin international law firms,
London. The lawyers of
with
the insurers maintain
Company and with relationships
technical experts.
with major national and international law firms, with
insurers and with technical experts.
The lawyers of the Company also deal with ship financing, corporate matters, tax
matters
The andofany
lawyers theother legal matter
Company also dealand court
with shipcase or administrative
financing, proceeding
corporate matters, tax brought
matters
in Greece
and or any
any other other
legal country.
matter and Ifcourt
needed,
case the lawyers of the proceeding
or administrative Company also provide
brought in
advice or
Greece to any
theother
departments
country. Ifofneeded,
the Company. TheofCompany
the lawyers lawyers
the Company alsoalso assist
provide the
advice
Insurance
to Manager inofdealing
the departments with any insurance
the Company. The Companyrelated matter.also assist the Insurance
lawyers
Manager in dealing with any insurance related matter.
The lawyers of the Company rely on information and records provided by all the
departments
The involved.
lawyers of the Company rely on information and records provided by all the
departments involved.
In some cases the lawyers require the active participation and assistance of employees
Inorsome cases
seamen whothe lawyers
need require
to provide the active
written participation
statements andbefore
or testify assistance of employees
a court, or procure
or seamen
expert who or
reports, need to provide
review written statements
documentation orcounterparties
produced by testify before or
a court, or procure
opponents.
expert reports, or review documentation produced by counterparties or opponents.
The Legal department is responsible for administering the corporate documents and the
The Legal corporate
relevant department is responsible
certificates of thefor administering
ship-owning the corporate
companies documents
of the vessels and the
managed by
relevant corporate
the Company. certificates
In this respect, of
thethe ship-owning
lawyers companies
of the Company of the
draft vessels
minutes managed
of the board by
of
the Company.
directors In this
and the respect,
general the of
meeting lawyers of the Company
shareholders sometimesdraft minutes
assisted of the board
by external of
lawyers.
directors and the general meeting of shareholders sometimes assisted by external lawyers.
The vessels are owned by separate companies which are registered either in the
The vesselsIslands,
Marshall are owned by Cyprus
Malta, separateorcompanies
any otherwhich are registered
jurisdiction. eithermay
The vessels in the
fly Marshall
the flag
Islands, Malta,
belonging Cyprus
to the or any
country other jurisdiction.
of registry The vessels
of the ship-owning may flyor
Company the flag
any belonging
other to
country,
the country
subject of limitations
to the registry of that
the ship-owning Company
the country of or any
registration mayother country,
impose. As farsubject to the
as the vessel
limitations thatthe
is concerned, theship-owning
country of registration
company ismay impose.
taxed in the As far as of
country thethe
vessel
flag isofconcerned,
the vessel.
the ship-owning company is taxed in the country of the flag of the vessel.

51
52
Insurance Department

53
54
 Insurance Department
12. Insurance Department

The Insurance department is responsible for insuring the ships against risks that might
The Insurance department is responsible for insuring the vessels against risks that might
cause damage, costs, expenses and delays to the vessels or may give rise to liabilities for
cause damage, costs,
the ship-owners andexpenses and delays
the Company. Thetodepartment
the vessels orprimarily
may give handles
rise to liabilities for the
the following
ship-owners
insurances: and the Company. The department primarily handles the following insurances:

i. Protection and Indemnity (Ρ&Ι):

i. Protection and Indemnity (Ρ&Ι):
a. Compensates the members of P&I clubs i.e. associations of ship-owners, for
a. Compensates the members of P&I clubs i.e. associations of ship-owners,
expenses
for incurred
expenses in respect
incurred to thirdtoparty
in respect thirdliabilities such as cargo
party liabilities suchshortages,
as cargo
injuries to crew,
shortages, cost
injuries toofcrew,
repairs forof
cost damages
repairs tofordocks or to floating
damages to docksobjects,
or to
damage to other ships, pollution and damage of cargo;
floating objects, damage to other ships, pollution and damage of cargo;
b. b. Freight
Freight Demurrage
Demurrage and andDefense
Defense(FD&D)
(FD&D)cover
cover totoreimburse thethe
reimburse members
membersfor
for defense
defense costs
costs including
including legallegal
fees,fees, experts’
experts’ feesrequired
fees etc. etc. required
to defendto defend
a legal
aclaim
legalagainst
claim against
them; them;
ii. Hull and Machinery (H&M) insurance:
ii. Insures
Hull and Machinery (H&M)for
the vessel damage to its hull, machinery and equipment
insurance:
caused by certain risks, excluding natural wear and tear. H&M insurance is
Insures the vessel for damage to its hull, machinery and equipment caused by
usually placed through one or more insurance brokers by allocating a
certain risks, excluding natural wear and tear. H&M insurance is usually placed
percentage of the fleet to each of them, so as to achieve the most
through one or more insurance brokers by allocating a percentage of the fleet
optimum premiums. Each broker contacts numerous reputable insurance
to each of them, so as to achieve the most optimum premiums. Each broker
companies or Lloyd’s Underwriters, requesting them to underwrite part of
contacts
the fleet.numerous reputable
In the event of a insurance
claim, thecompanies
underwriteror Lloyd’s
holdingUnderwriters,
the largest
requesting
percentagethem of theto insurance
underwriteofparttheofrespective
the fleet. In the event
vessel of a known
is usually claim, the
as
underwriter holding the largest percentage of the insurance of
“the leading underwriter” and is responsible for performing surveys and the respective
vessel
taking isdecisions
usually known as “the
with regards toleading
claims; underwriter” and is responsible for
iii. Warperforming
risks: surveys and taking decisions with regards to claims;
Insures the vessels for any damages caused to the ship’s hull, machinery
iii. and equipment as a result of war and war-like situations. Further, the
War risks:
department
Insures may arrange
the vessels additional
for any damages insurance
caused to thefor loss ofhull,
vessel’s hiremachinery
cover dueand to
war risks, depending on the circumstances. This insurance is usually
equipment as a result of war and war-like situations. Further, the department
provided by the Hellenic Mutual War Risks Association.
may arrange additional insurance for loss of hire cover due to war risks,
depending on the circumstances. This insurance is usually provided by the
Overall, the Insurance department
Hellenic Mutual takes
War Risks steps to defend, in cooperation with the
Association.
claims handlers and the insurers, any claim of the above nature, whenever it occurs. It
also arranges the collection of compensation for claims under the insurance policies,
Overall, the Insurance department takes steps to defend, in cooperation with the
from the insurers with the assistance of the Legal Department.
claims handlers and the insurers, any claim of the above nature, whenever it occurs.
It also arranges the collection of compensation for claims under the insurance policies,
from the insurers with the assistance of the Legal Department.

55
56
Administration & HR Department

57
58
 &

13. Administration & HR

Administration & HRDepartment
Department

The Human Resources of Contships Management is identified as the cornerstone of its

The Human Resources of Contships Management is identified as the cornerstone of its
corporate identity and success. The aim of the Administration and HR department is to
corporate identity
effectively and success.
and consistently The aim
optimize theofinteraction
the Administration and HR department
of the shore-based personnel isand
to
effectively
the and consistently
achievement optimize
of individual the interaction
shore-based of thetargets
employee shore-based
and thepersonnel and the
fulfillment of
achievement of individual shore-based employee targets and the fulfillment of corporate
corporate objectives, always within the framework of the corporate culture of Contships
objectives, always within the framework of the corporate culture of Contships Management.
Management.

The department is responsible for supporting shore-based personnel throughout their

The department is responsible for supporting shore-based personnel throughout their
employment as follows:
employment as follows:

i. Recruitment: Planning, organizing and supporting all recruitment projects by

i. Recruitment:
searching forPlanning, organizing
a permanent or for a and supporting
temporary all recruitment projects by
employee;
ii. searching for Establishing
Induction: a permanentandor forcontinuously
a temporaryimproving
employee; the induction process,
ii. Induction:
ensuring Establishing and continuously
a friendly, efficient improving
and targeted the induction
introduction process,
of each ensuring
new member
a to the staff;
friendly, efficient and targeted introduction of each new member to the staff;
iii. Performance
PerformanceandandDevelopment
DevelopmentManagement:
Management: Establishing
Establishing and
and maintaining aa
well-designedprocess,
well-designed process, along
along withwith promoting
promoting the culture
the culture of continuous
of continuous learning
learning and development. This is one of the most challenging objectives of
and development. This is one of the most challenging objectives of the department
the department and is accomplished through annual performance evaluation
and is accomplished
combined through annual performance
with development-focused evaluation
career dialogues, combined
continuous on thewith
job
training and career development
development-focused initiatives;
career dialogues, continuous on the job training and career
iv. development
Employee initiatives;
Administration Support: Handling on an ongoing basis, all
iv. employeeAdministration
Employee administrationSupport:
related needs including
Handling on anleave management,
ongoing facilities
basis, all employee
management related issues, etc;
administration related needs including leave management, facilities management
v. Internal
related controls
issues, etc; audits and reports of the ERP system.
v. Internal controls audits and reports.

At the same time, the Administration and HR department is responsible for creating and
maintaining communication channels, both internally and externally, that allows it to
At theatsame
have time,
all times anthe Administration
updated and
view of the HR department
existing workforce isprofile
responsible
(roles, for creating and
responsibilities,
and mix of skills)
maintaining in the Company
communication as well
channels, both as of the anticipated
internally corporate
and externally, future
that allows needs.
it to have
Such needs result from the business strategy of the Company and from the evolving
at all times an updated view of the existing workforce profile (roles, responsibilities, and mix
market conditions both in the shipping industry and in the local and global labor market
of skills) in the Company as well as of the anticipated corporate future needs. Such needs
in general.
result from the business strategy of the Company and from the evolving market conditions
both in the shipping industry and in the local and global labor market in general.

59
60
Information Systems Department

61
62
14.Information
14. InformationSystems
SystemsDepartment
Department

The aim of the Information Systems department is to support the information systems of
The aim of the Information Systems (IS) department is to support the information systems of
the Company, as well as the systems of its managed fleet, with regards to daily
the Company,
operations, as well as thesoftware
maintenance, systemsdevelopment
of its managed fleet,
and with regards to daily operations,
training.
maintenance, software development and training.

Daily operations are supported by a number of services provided to end-users such as

Daily operations are supported by a number of services provided to end-users such as email,
email, backup and the intranet portal server. Maintenance services include software and
backup and the intranet portal server. Maintenance services include software and hardware
hardware installations and repairs. Software development includes both in-house and
installations and repairs. Software development includes both in-house and off-the-shelf
off-the-shelf computer application solutions, as well as collaborative efforts to develop
computer
systems suchapplication
as the solutions,
unified ERP as well as collaborative
system, which contains efforts to develop
many modulessystems such by
being used as
the
many unified ERP system,
departments (i.e. which contains
Accounting, many modules
Operations, beingChartering,
Technical, used by manyetc.) departments
and support
(i.e. Accounting, Operations, Technical, Chartering, etc.) and support
departments working together by integrating processes and information flows. departments working
The
together by integrating
training services refer toprocesses and information
the introduction of currentflows. The training
systems services
to new shore andrefer to
vessel
the introduction
personnel as wellofascurrent systems to new
new technologies such shore and vessel
as business personnel
intelligence andasthewell as new
support in
technologies such asservices,
leveraging current business for
intelligence
instance,and the support
document in leveraging
management in current services,
the intranet for
portal
instance,
server ofdocument management in the intranet portal server of the Company.
the Company.

The Information Systems department is also responsible for shore-to-ship and ship-to-
The Information Systems department is also responsible for shore-to-ship and ship-to-shore
shore communications between the Company and the vessels under its management.
communications between the Company and the vessels under its management. This requires
This requires negotiating satellite tele-communication rates, as well as monitoring and
negotiating satellite tele-communication rates, as well as monitoring and checking invoices.
checking invoices.

Overall, the IS department promotes the use of technology so as to improve and optimize
Overall, the IS department promotes the use of technology so as to improve and
operational tasks and decision making.
optimize operational tasks and decision making.

The Information Systems department is also responsible for the training and the
The Information
familiarization of theSystems department
shore-based staff withisthe
also
ERPresponsible
system of thefor the training
Company and
including the
audits
familiarization
and of the
the preparation shore-based
of reports relatedstaff with
to the the ERP system
performance of the
of the ERP Company including
system.
audits and the preparation of reports related to the performance of the ERP system.

63
“Protect the Environment”
Contships Management Inc.
45, Vasilissis Sofias Avenue
Athens
Contships 106 76, Greece
Management Inc.
Tel: +30 210 7267800 Fax: + 30 210 7267890
Email: [email protected]
Athens 106 76, Greece

Tel: +30 210 7267800 Fax: + 30 210 7267890

Email: [email protected]