4.2.1 Rationale of undertaking the crewing project
During 1987 the Transatlantic Ship Management undertook a crew reduction project, which was aiming to reduce the cost of manning under the Swedish flag. In the presentation of the project from the Transatlantic Ship Management, the company presented the followings as the rationale to undertake the project:
• The large scale re-registration of ships to other flags,
• No other advanced Swedish project since 1978 (it was also undertaken by the same company),
• Several project in progress around them,
• Sweden formerly a leader in the development field, • Previous projects very successful,
• The situation in shipping at that period, • The increased competition,
• The recently introduction of parallel registers (NIS, DIS etc), • The advanced expertise of Swedish marine personnel,
• The need for changes in crewing regulations,
• Survival (Transatlantic Ship Management AB, 1989a).
However, it was not surprising that Sweden had decided to undertake a crewing reduction project. It had even considered that the project was undertaken later than it was expected, since operating cost under the national flag was a longstanding concern (Seaways, 1989).
The ship chosen for the project was Companion Express, one of the G3-class ro- ro/container liners operating in the ACL consortium. She was built at Kockum shipyard and subsequently lengthen in 1987 by 42m to 292m. Companion Express was (and still is) operating on a liner trade across the North Atlantic Ocean. That is to say, she was (and still is) involved in voyages with regular port of calls. Some special features for the Companion Express were (and still are):
• Cargo access arrangement with fully automated hydraulic operation,
• Cell guides on weather deck giving a fully automated lashing free container handling,
• One man operated mooring equipment fore and aft,
• Powerful thrusters fore and aft with fully automated start-up from the bridge, • Bridge layout permitting an one man operation also in locks and during
docking manoeuvres,
• All mechanical equipment from engines and on, arranged for optimal accessibility,
• Administrative computer based systems for both ship’s internal use and for cargo (Transatlantic Ship Management AB, 1989b and Seaways, 1989).
4.2.2 Objective and uniqueness of the project
There was a need for reduction of the crewing cost in order to make the Swedish flagged vessels competitive in the international market. The required reduction in cost was quantified and set as an objective. The aim was to lower the cost under the Swedish flag at a level where it would be equal to the cost under the Norwegian International Registry (NIS).
The mean to lower the crewing cost was the sharp reduction of crew size. Therefore, the reduction of crew size by 40% was set as the objective of the project. This number was calculated taking on account the cost under the Swedish flag with crew of 20, 10million SEK, the cost of the same crew size under the NIS, 4.5 million SEK and the governmental support package of 2,4 million SEK.This was not possible to be introduced unconditionally. There was an obligation that safety would not be compromised and that the operational performance and the social life of the crew would be maintained at high standards.
The uniqueness of this project was the fact that the reduction in crew was not because of the extensive use of high tech and the subsequent substitution of manpower by automation. High tech may has been used, however the 40% reduction was succeeded after analysing all the tasks which were performed on board. The proposed and accordingly implemented size of crew was as follows:
Master 1 Chief Officer 1 2nd Officer 1 3rd Officer 1 Chief Engineer 1 2nd Engineer 1 3rd Engineer 1 AB GP 3 Motorman GP 1 Cook Steward 1 Sum 12
The analysis, which was performed, was the following: • Calculation of workload,
• Definition of crew core task, • Definition of crew service tasks,
• Scrutinising of the working methods on board.
It is obvious that every single task on board was put under scrutiny in order to optimise the use and the results of a small but well trained crew. The results of the analysis were:
• Establishment of a new manning model, • Operational manual for every defined task, • Operational manual for a specific round trip.
These manuals were aiming to introduce new organisational patterns and procedures, where their implementation has resulted in the safe and efficient operation of the vessel with crew size of 12 (Transatlantic Ship Management 1989 a and b).
4.2.3 Cost/Benefits analysis of the project
The 12-man concept was borne as an internal project in the Transatlantic Ship Management AB, however months later became a major input in the “The ship operation and manning study” project. The latter was a project organised and financed
GBP40,000 and was later covered by the participation of the company’s experts in the project launched by the SSA.
The investments in equipment were covered by the normal operating costs of the vessel. The total amount spent for this purpose was GBP10,000; an extra helm was bought for the wheelhouse as well as an extra remote control station for the aft mooring winches to allow only two men to connect tug lines safely.
The following gives an exact picture of the costs and benefits in GBP per year from the implementation of the project:
Gross savings in crew cost 400,000
• Increased wages and allowances 40,000 • Improved relief system 5,000 • General Operator certificates 15,000 • Cost of temporarily support crew 20,000
Net savings in crew costs 320,000
• Extra ordinary cost for repairs and maintenance including cost for
external service companies 20,000
Net savings in total cost 300,000
It is noteworthy that Transatlantic was even able to negotiate lower hull insurance rates between 15 and 20% from the Swedish and the Atlantica Clubs (Transatlantic Ship Management 1989a and b and Seaways, 1989).
4.2.4 Appraisal of the project
Eleven years after its launch the project still runs, therefore one can conclude that the project has fulfilled its expectations and objectives. The company currently operates five vessels in the cross Atlantic trade. Two of these vessels are manned with the 12- man crew concept. The other three vessels are manned with a crew of 24 and their nationality is Filipino.
In an effort to investigate the future of the project, the superintendent of the company was interviewed. Having discussed all the details of the project, its evolution and success, he concluded by saying that the project is still running because the concept still fulfils its initial objective. He supported his statement by saying that the total operating cost of the vessels manned with 12 Swedish seafarers is equal to the vessels manned with 24 Filipino seafarers.
4.3 The Pioneer Vessel