American Shipping Company Essay

The American Shipping Corporation owns and charters vessels for operations throughout the United States. The company buys and charters products, as well as shuttle tankers to their operators and users (Frankel, 1982). The company was formerly known as Aker American Shipping, but the name was changed to American Shipping Company ASA in June 2008. It now collaborates closely with charterers to maximize the value of each charter. They operate a modern, safe, and friendly fleet of vessels, ensuring optimal security for their stakeholders (Frankel, 1982). The company's decision to offer their services is dependent on the market demanding forces and the number of investors to invest in the company.


Problem Statement


Piracy has emerged as a chief concern in the shipping company. According to the current reports, there were 221 attacks worldwide accompanied with hijackings (Frankel, 1982). In addition, labor shortage increases in the company, therefore, it needs serious personnel to run the vessels. Any failure brings the company down. Consequently, the cost of labor increases drastically and raises the cost of ships.


Significance of the Problem


The company discovered the possibility of compromise to the quality of seafarers and safety of vessels during transportation because of piracy. Shortage of labor caused a worldwide concern launching several international campaigns aimed at attracting young people to seafaring careers (Hargett & Williams, 2009). Finally, vast rules and regulations associated with shipping guided and repealed the provisions met in 2005 (Fishman, 2006).


Development of Alternative Actions


Alternative Action 1


Developing of team members experienced in training the ship staffs on the security measures. These teams pass information to other members concerning security precautions and actions in the company (Fishman, 2006). In order to deliver the best knowledge to the staff, the trainers will require particular courses.


Advantage. The training approach enhances good security in the company; prevents piracy of ships. The firm will be motivated in the implementing port facility and engaging foreign service providers.


Disadvantages. Through this action, the company is likely to face marine pollution and, more so, experience illegal maritime arrivals. The staff trained may not be able to manage piracy and terrorism, which are the key issues affecting the company.


Alternative Action 2


Through multiple comprehensive approaches that entail legislative, technological and societal measures, strengthening of security measure can manage piracy. In addition, improving the intelligence and information sharing requires cooperation both at sea and land (Fishman, 2006).


Advantage. It reduces the level of piracy in the company. Installation of the underwater detection and above water detection is a defensive mechanism, which is contributed because of this approach.


Disadvantage. The need to have structures that address shipping security and the capacity used in the company involves both internal and external practices, which may be expensive hence increasing the cost of production.


Recommendation


In order to maintain maximum security in the shipping company, the team members must ensure that there is enough security all over the firm. All the staff members should be vigilant in their work to rectify any problems arising. Interrogation and monitoring of any visitors in the company should be applied to validate the authenticity of their going to the port. Following all these approaches, the company will be able to deliver maximum profit and reduce the cost of operation (Fishman, 2006).


References


Fishman, C. (2006). The Wal-Mart Effect: How the World's Most Powerful Company Really Works--and How It is Transforming the American Economy. Penguin.


Frankel, E. G. (1982). Management and operations of American shipping. Auburn House.


Hargett, T. R., & Williams, M. F. (2009). Wilhelmsen Shipping Company: moving from CSR tradition to CSR leadership. Corporate Governance: The international journal of business in society, 9(1), 73-82.

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