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The Overseas Shipholding Group (OSG), an acknowledged force to reckon with in the global maritime industry as an independent shipping company, has consolidated the two components of its ship management operations in the Philippines in an effort to streamline as well as strengthen its crewing business in the country.

Capt. Kenneth A. Macleod, owners’ representative of OSG, disclosed that beginning on August 19, 2005, its ship management unit in the Philippines under C.F. Sharp Crew Management, Inc. have been gradually integrated into the operations of OSG Shipmanagement Manila, Inc., the manning entity that was earlier formed with the merger of OSG and Stelmar Shipping Ltd.

Capt. Kenneth A. Macleod said that the memorandum of agreement between OSG and OSG Shipmanagement that paved the way for the emergence of an operational umbrella in the Philippines, through OSG Shipmanagement Manila, took  last October 1, 2005. 

The OSG owners’ representative added that the integration of its operations in the Philippines was a corporate decision by its parent company in New York.

He was quick to point out however that since the management has given a lot of thought about it before the integration was carried out, the detachment process with the former manning agents was quite seamless.

As a result of the integration of its local ship manning operations, OSG Shipmanagement Manila now manages a total of 61 ocean-going ships plying worldwide trading routes made up of crude and petroleum product tankers, handy-size, as well as Panamax vessels.

The company is now in charge of some 2,500 seafarers needed to operate these vessels, 82% of which are Filipinos.

Overall, the parent OSG group manages a little over 100 vessels. But with an ambitious Chief Executive Officer steering the helm of its global operations from its New York office, the company expects to more than double the number of vessels under its wings from the present number to between 200 to 250 vessels in two years. OSG also has operational bases in Newcastle, England and Greece.

Capt. Kenneth A. Macleod says that OSGShip-management Manila is expected to get bigger in no time because its operations will eventually be unified for the whole OSG fleet worldwide.

“This would mean more opportunities for Filipino seafarers in the near future,” cites Capt. Macleod.

“But we are not just after seafarers with average skills. OSG is looking into getting only the highest quality of seafarers. Given the strong competition in the global shipping industry nowadays, one sure way of keeping abreast with the needs of the times is through competitive and highly-skilled seafarers. Filipino seafarers have become quite dependable in this particular facet of the business so OSG sees no reason to source out crew from other countries,” explains Capt. Macleod.

Despite OSG’s high crew retention rate that ranges from 85% to 87%, Macleod says that the company will not rest on its laurels and continue to enforce, or perhaps even strengthen, its strict evaluation and assessment procedures.

OSG, in fact, is one of the few shipping companies that regularly conduct officers’ conference for key personnel of their vessels, as a way to gauge the seafarers’ operational level skills as well as their viability for management level positions in the future.

Capt. Kenneth A. Macleod pointed out that OSG has recently sponsored 24 maritime cadets to undertake the NIS program, 16 of these students are for deck positions and the remaining eight for engine.

The owners’ representative says that if the program turns out the result that OSG expects, given the remarkable track record of the NIS in churning out topnotch seafarers, then the company will institutionalize such initiative.
“We also plan to scout for the best maritime students from various maritime schools in the country and continuously train them to create our own pool of new ship officers” adds Capt. Macleod.

Obviously, a significant investment for OSG considering that it takes about US$40,000 to completely train a cadet to achieve the desired operational level skills as a junior officer.

Capt. Perry Ravanopoulos, Chairman of OSG Shipmanagement Manila, Inc., says that OSG’s crewing policy enables highly-skilled Filipino seafarers to have regular employment with the company but more importantly, a career path to follow beyond their seafaring days in the oceans and eventually into OSG offices discharging management level functions.

On the moves of some shipping companies to increase the salaries of its crew to ensure loyalty and maintain its competent pool of seafarers, Capt Perry believes that it is counter-productive in the long run not only for the shipping companies but also to the seafarers because it is not sustainable.

“We don’t want these highly-skilled Filipino seafarers to price themselves out of the market. Just like OSG, we want them to stay and be with this very competitive industry for the long haul,” emphasizes Capt. Perry.

Capt. Perry says that OSG will continue to adopt average salary rates for its seafarers and shower them and their families with benefits, which all of their crew, see as more than a fair deal already.

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