Shipping Business

In our department, there are a total of eight individuals. Eight very different living souls with much diverse dreams and expectations. We run four cargo steamers, hopefully for a profit.  All doing a job in expectation for realizing their own goals.  The company was registered as Seabridge Shipping Company, affectionally known as SSC in the trade. The company main shares of 70% is owned by the First Myanmar National Bank, and 10% each by a Myanmar Chinese in the name of U Shwe Maung and other is U Nay Win of Chinese Indian decent. The remainder 10% was allocated to the company staff, afloat and ashore equally.  This was a management ploy, so that all staff work for the betterment of the company, and likewise also to bear the wreath if performance was not up to expectations.  We have six board directors, of which two from the bank, to look after its interests.  The General Manager is a German national under the name of Hans Manfred, who also is a board of director.  It is a tight boat with 24 total compliment making sure the 4 ships run efficiently, with a minimum of costs at all times. 

All 64 shares of the each ship are owned by SSC, and great care was taken on securing them. The 4 ships are from Chinese yards and about 2/3 years old at a cost of under U$10 million each, second hand. Two of each set are sister ships, to keep spares and running costs down. Both sets around 7/8000 dwt each, with 3 holds, and 2 Liebherr cranes of 50 tons each on starboard side, having a reach of 5 meters from the ship’s side. Draft fully landen is around 6 meters, with 4/500 teus in and on holds. MAN B&W engine consumption is (Marine Heavy Oil) MHO 12 tons and (Marine Diesel Oil) MDO 1.0 ton a day, delivering up to 14 knots an hour. With 25 reefer plugs onboard, our multipurpose cargo ships are good work horses. Incidentally, the cranes are used in Yangon only.

2 of the ships are deployed on the far eastern trade up to Shanghai with transshipment arrangements to Hong Kong, Japanese and Taiwanese ports, plus 2 are on Colombo trade via Singapore connecting Europe and USA. All ships are not economically viable to serve up to Japan, plus States side, and also to the Continent, due to its capacity. In short, it does not enjoy the economy of scale.

In the port city of Yangon, ships are berthed at Thaketa wharf, as down town wharfs are still prone to under the table payments and slow performance. Besides, SSC owns 8% of the wharf, and we do have some say in the operations. Shippers, receivers and their agents are happy, which is a great plus for us.  The estuary of Pago River joining Yangon River is somewhat draft limited, thus the shallow drafts of our vessels are not discriminated to the restriction. We are the only tenant, apart from National Line coasters at Thaketa, thus our berthings are a premium.

Now, back to our office, Jerry Ba.  He is the youngest and at the age of 20 years and 3 months, he’s the most junior in our department. Young in age and that slim boyish look bait the ladies. His aim is to score by hook or crook.  With no permanent girl friend and not wanting any, his ideal glory is to brag first thing Monday mornings, that he scored during weekend. He finds the greatest satisfaction that he is able to fish, at his will. Jerry Ba is in charge of all our department filings, including upkeep of voyage data’s and schedules. He also make coffee and make sure correspondences are well responded in time.  He is much aware that his chance to climb the corporate ladder is non-existent, as he is right at the bottom. Being a realistic man, he would stick with this job till he can secure a position, where the pay would be higher and his prospects brighter. He makes no bones about it.

Then we have Daw Ohnmar, she’s about 36 years old with a husband and one daughter and a bit in the tummy.  She has no ambition to aim for any additional greatness. She is just happy to go through life as it is.  All thing expenses, including disbursements are decided by her whether to settle promptly or otherwise, including invoices from all ships and ports of calls. She is a content woman, with a loving husband in the automobile trade. She can see through whether the expenses are necessary and authentic, a person who would stand firm on her stance, thus foreign agents and ship’s command sweet talk to her, always. Their motto is, best not awaken a sleeping tigeress.

The other team members are Daw Hla Hla and Daw Mya Mu, both spinsters around mid forties, one is in charge of manifests and all things documents relating to exports, while the other is handling everything to do with imports. Both were affectionately known the twins.  Very straight forward and correct in their dealings, and are great friends too.  Now a wee bit on the plum side, and been with the company about twenty years, sex now is a non player as far as they are concerned, and life reflect around their work only. They aim to stick it out until retirement, and want to return back to their villages, and be mini philanthropists in terms of services only, as financially not too strong.  Their heroes are the likes of Warren Buffett, William Wilberforce, Bill Gates and Bill Clinton. The twins are well liked, and their thoughts are sincerely sought after by many including customers.  With no more thoughts lingering on promotions, however, any additional increases in pay are much welcomed by them. 

The next team member is U Thaung, Manager by rank and also handles all matters relating to container control with the assistance of Jerry Ba. Around 6000 carrier owned containers (coc), a third of which are on lease plus Connecting Carrier Agreements (CCA) with Maersk, Mediterranean  Shipping Company (MSC) and Neptune Orient  Lines (NOL). U Thaung is a busy man, also lovingly known as CC (container control) in the company. A married man with two grown up sons, one working with a local foreign bank, and the young one is a trainee pilot with a commercial airline. A wife, two years his senior having a group of friends with a yen for bingo, is anchored to his post each day, as he feel spending time with an automatic yapping machine at home,  is not worth triggering his high blood pressure. In his early fifties and graying, if he doesn’t kick the bucket early, like to retire up north in Taunggyi, where he’s got a sister and fade away into the sun set. Fat chance !

June Tin Tin and Ms. Moe Moe were both appointed by myself as Assistant Sales Manger and Sales Executive Officer. Both very aggressive sales women and no nonsense dishes, well connected with our customers, mean what they say and say what they mean.  It is their job to secure cargo for our boxes, and make sure at least 350 of our twenty foot equivalent (TEUs) are utilized on every ship, every voyage, and coordinate import boxes are also at maximum with our oversea agents. Their salaries are on performance basis, with a bonus should they be able hit our target.  Pleasant personalities coupled with smooth talking, plus looks and not shying away from a drink or two, opens many a door. Being single and an understanding family also helps. We all three would have a chat every morning, on lifting’s and the market in general.  They also have to be on the lookout what other shipping lines are doing, and be well advised on the freight rates, as market situation can change, subject to trade and demand and supply of commodities.  They are out for sales by 1000 hours, and finishing time depends on how much boxes they able secure. As both still under thirty, therefore long working hours are not a hassle, and their main agenda being to be well compensated at the end of the each month. Reefer boxes and garments are always welcomed together light cargoes. Both their resilience are astonishing.  I think it’s one of the best investment the company made.

And there is me, as Head of the Operations with a finger in every pie, making sure our income are at an optimum for every voyage and better then our competition. Old and graying, not much use around the house anymore, weekday home dinners is no more a chore for the wife, as evening entertainments are part and parcel of the job. Being well liked and being part of the gang also, bring in boxes.  Given a shoulder to cry on and lending a helping hand, are appreciated by all.  Understanding the market is so important, and one needs to be at the right place, at the right time, every time.  My two girls and the lad, are now all married. Thank god their partners are not in the business of shipping. I would see my four grand children at weekend lunches, and also thankful for their monthly cash supports. It all helps, and I am sure my likely pension together with their monthly supports, will see this old man and woman through.  There should not be a slowing down our life style, and health is the only thing to be watchful, to enjoy the fruits of our labor.

Today’s internet, wi-fi, emails and mobile phones are a necessity evil.  You are 24/7 on the job, and the only advantage of Sundays is that you don’t need to dress up for the office.  At times, it was also a blessing in disguise, as your customers gave you cargo at weekends. The only trick is to meet their deadlines. Not so an easy task by any means. Another good point is emergencies can be addressed promptly, and you are available at all times. Good? Bad?, I leave it to your better judgment.

The chief money man is, Mr. Mutu De Silva, a  man  of  Anglo Indian background  is our Chief Accountant.  A Chartered Accountant by training  and also a board member.  Happy with  all  figures, including those.  A married  man  but  always  willing  to   study figures in the flesh too.  The amount of energy the man has is staggering.

My job is for every voyage to be profitable and I would at times blare on the telephone to our Marine & Engineering Superintendent  " MES, we lost a total of 2.3 days last voyage of the Irrawaddy, due to repeated over heating of exhaust and slow response of clearing ship from ports " and continued " this is totally unacceptable  ".  

This would constitute all necessary action by him with the captain.  After all, he will enjoy the shares like all of us, and in return, we expect nothing but the best from him and his crew.  We have three sets of crew for each ship, one onboard, one on leave, and one set on stand by ashore (at home).  Their salaries are a bit higher than the market rate, and all floating staff are expected to stay onboard at all times during their six months sea duration.  After one year of complete service, onboard and stand by, means the shares become enjoyable or its reverse.  Full pay onboard, and half pay during stand by and leave. They are on six months onboard, three months leave, and up to three months on stand by.  The salary details are worked out in detail by the Chief Accountant. While onboard, their advances are limited to two months salary. Their bonuses are computed separately by MES and his team.  Our sailors can either take it or leave it, as there are too many fish in the sea.

MES is a seasoned master by trade and his Assistant MES is an ex-Chief Engineer who is known as Axe. As the name would suggest, should performance be under par, they are promptly removed, no if and no but.  The ships are expected to make 12 knots at sea and twenty percent reduction in speed means forty percent reduction in fuel cost is drilled to our Masters and Chief Engineers.  All four ships prime movers and generators are similar, thus ease of operation plus maintenance and spares were able to be maintained at a minimum. Spares stock onboard and or ashore means sleeping capital, thus spares are kept to what the law demands only.

SSC is well liked in the trade, as schedules are always maintained and shippers able prepare their exports with no extra leeway, saving on costs and man power.  The company twenty four hands are a close knit community, and does run like a well oiled machine.  There is only one secretary to take care of the board, with the company chauffeur doubling as a public relation man and assistant the secretary when not driving guests.  The board members drive themselves and no office car as such. Hans Manfred, run a small office with the latest cutting edge technology machines. Anyway, he is mainly on his feet, as no boys or shapely broads to assist his paper work and office chores.

Holidays? Yes, we do take two weeks off in a year. It must be well coordinated in advance with the whole office, and one goes on holiday with a cell phone. With internet and wi-fi available 24/7, it would be prudent to also take along your laptop or tablet, otherwise one will be going into internet cafes like a yo-yo. A sort of a working holiday, if you like!

I am thinking seriously of dropping Colombo from our westbound schedule, as India bound boxes are heavy with pulses are coupled with low freights and nil outbound from there.  Besides, there are too many local shipping lines to contend with. Income wise also, it does not justify the means. Our Europe bound boxes can be catered, also from Singapore with our CCA with Maersk and MSC.  In and outbound USA cargoes are catered through Neptune Orient Lines (NOL). I must make a trip to Bangkok to meet Maersk and also to Singapore and have a talk with NOL. The more I think about it, the trip ought to be sooner than later, as time is money and currently the Colombo call is bleeding us.

Singapore to Colombo is 1695 miles, and for our ship it means 7.1 days and on return to Yangon, with the difference between Singapore to Yangon is another 0.7 day, thus a saving of 7.8 days in total.  That’s a lot of cherries, considering vessel, bunker, port and wages costs against its container freight income. This is not considering depreciation and container leasing and reposition costs. Must get it done real fast. I am very confident that June Tin Tin and Ms. Moe Moe will be able to fill up the vacuum.  I want more garment boxes, and the girls must secure more new accounts. I must also make sure more of my time is allotted to them also.

There is a change in the timber industry. With no more logs to be shipped due to new (United Nations) U.N. guidelines, must check the sawn timber trade to Europe. Myanmar is on a modernization spree for 26 years lost time. This means a buying frenzy and every likelihood of increase in imports, thus also must make a point to visit the buying departments.

So much to do and unknowingly I grumbled out loud " getting too old for this, it’s a young man game now ". 

Daw Ohnmar slowly said " you said the same last year ", which brought me back to my senses.

I turned by back to them and gazed at the pouring monsoon rain out from my window. Like the rain, business also pours, but only for a limited time. Must make sure to catch it.

Each year was the same, trying to meet lifting and earnings to target. How long can this go on? , with each year, it is getting more difficult. Must cut and run before the game is over or it will out run me.

This evening, I will go home early and shall buy a bouquet of choice carnations, on the corner of 24^th street in China Town and lift my wife off her feet and wispier ‘I love you’,  she will be chuckled to death as this is not her birthday or our anniversary, and then take her for a long dinner at a posh restaurant. Just the two of us.

I must remember tomorrow, request help from Hans Manfred to take a trip to Copenhagen and Geneva and see Maersk and MSC.

After all, it’s summer there, and should be nice.