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Engineering management involves maintaining a vessel’s physical plant, conducting inspections, managing personnel, purchasing and auditing finances, and handling insurance claims. Shipping companies can outsource technical management, but other departments handle charters and cargo contracts.
Engineering management is a series of related activities required to keep a vessel operational and to enforce laws in the regions where the vessel may travel. A shipping company can take care of its own technical management or outsource the work to another organization with experience in this area. Other components of managing the shipping business, such as establishing charters and creating contracts for shipping cargo, are the responsibility of other departments.
One aspect of engineering management is keeping the vessel’s physical plant operational. This includes scheduling maintenance and service, supervising repairs, and replacing outdated or worn-out equipment. Personnel must regularly inspect the vessel to confirm that maintenance is being performed on schedule and to test equipment to determine if it needs repair or replacement. This includes everything from hull assessment to checking the engine and navigation systems.
Another part of technical management is conducting inspections of vessels. Shipping companies regularly inspect their vessels and also undergo regulatory inspections. In preparation for an inspection, the technical management team checks the vessel to identify any issues that need to be addressed. A member of staff accompanies the inspector to answer questions and assist if needed. If cited for violations, the company will need to address them and provide proof of resolving the violations in order to receive regulatory approval to continue operating.
The personnel is also competent of the technical management. This includes hiring new staff members, firing sailors who don’t do their jobs properly, and promoting staff members who appear to add value to the shipping company and its services. Staffing needs also include the establishment of benefits, training and assessment of staff members to ensure they have the appropriate training and qualifications for their positions.
These duties also involve making purchases related to keeping the vessel operational and auditing the vessel’s finances to keep it within budget. Staff may also engage in activities such as quality control of purchased goods to confirm that orders are being properly fulfilled by suppliers. Insurance claims relating to vessel loss and damage are also the responsibility of technical management personnel, who must file claims with appropriate documentation, respond to insurance company inquiries and collect money once the insurance company has paid. Staff will use money from insurance payments to repair or replace the vessel and will typically research ahead of time so they are ready to act as soon as the insurance company provides payment.
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