Benefits of Outsourcing the Crew Management Service

The crew is the heart of every ship, and it is essential that owners make sure that the vessels have a reliable, experienced, and qualified crew. It is therefore not surprising that it takes one of the biggest chunks of a vessel's budget. The million-dollar question therefore is, should the crew be managed in-house or outsourced?

For any ship-owner, this must be a question they have had to face so many times when making a decision on how to manage their vessel. One will naturally argue that doing the job internally will be more cost-effective as outsourcing means that the owner has little control over how the budget is spent. So what are the benefits of outsourcing the ship crewing process?

Cost-effective

When the vessel has its own supply of in-house crew, the staffing costs rise significantly because the right infrastructure is already in place. There will also be a need to invest in the necessary crewing software. All this can be made simpler by outsourcing the crewing requirements to a manager.

Less hassle

The owner of a vessel can relieve himself from the burden of crew management logistics and personnel issues by letting a specialist handle the ship crewing process. Since the management company is an expert, they will ensure a hassle-free operation for the manager because he does not have to deal with the changes that come with the planning of the crew, verifying certificates, arranging visas, changing the vessel schedules, injuries, and sickness of the crew. Handling of the crew in a vessel is very delicate, and the manager needs to make sure that they are cautious because sensitive factors such as beliefs, culture, and the nationality of the crew play a big role in decision making.

Fixed pricing

When outsourcing for a ship crewing management, the owner is presented with a hiring contract that states the fixed cost. It is, therefore, clear for the owner what his crew is going to cost upfront. This information is very valuable for the vessel owner during budgeting and negotiations with the bank. The owner is also safe from currency risks and any other unforeseen issues.

Larger staff pool

Sourcing for Seafarers through crew managers automatically extends the pool size. This is an advantage to the owner because it means that he is getting employees with good performance records. It will be less unlikely for him to employ the wrong person, therefore, saving time and costs.

Economies of scale lead to lower costs

A crew manager is well-positioned to achieve economies of scale which he can pass down to the owner by lowering the price. The crew manager receives better packages from the port agencies by reducing the handling, and local service provider fee, which is, in turn, passed on to the owner through a favorable cost agreement.

In conclusion, ship owners usually face a lot of challenges because of regular updates and regulation changes. A ship crewing manager relieves the owner of the workload, crew administration, and legal processes, therefore, saving him time and money.