Ship Managers, Suppliers Call for Transparency

The organizations representing ship managers and ship suppliers called upon ship owners to discuss cash flow problems openly as the global slowdown has made many slow to pay.

Roberto Giorgi, president of V. Ships and of the International Ship Managers' Association, InterManager, said Tuesday that ship owners should be transparent with their ship managers and other stakeholders regarding any financial or cash flow problems. “There needs to be transparency bet¬ween owners and shipmanagers,” he told Lloyd’s List.

Jens Olsen, president of the International Shipsuppliers & Services Association, said ship managers and ship suppliers “find themselves in the same boat.” Late payment can have disastrous effects on suppliers’ own cash flow and ability to supply ships in the world’s major ports, he said Wednesday.

Olsen said he would seek a meeting between ISSA and InterManager to find ways to work together to minimize cash flow problems.

Late payment, and in some cases the non-payment of ship supply invoices, is a growing concern for ship chandlers, Olsen said.

Both groups urged ship owners to discuss cash flow problems early and to re-negotiate payment terms if necessary.

“We are always looking ahead. The next three to four months will be crucial for many owners, depending on what happens to shipping markets, but the container market looks to be in the worst situation. We are definitely in a different game than we were 15 months ago,” Giorgi said.

Contact Thomas L. Gallagher at tgallagher@joc.com.