Abstract

 

At every financial period (quarterly, semiannual or annual) in Shipping Industry, CFOs are requested by shareholders and/or investors to present the financial results not only just as formal financial statements but also as useful information in relation to their competitors or the market. Despite the best services provided, it is due to the existing trade cycles [1] of the shipping market that shipping companies have trouble delivering strong long-term growth unless their management ensures that all business aspects operate efficiently and effectively. The measurement of the management force to vessel’s operation should be evaluated for industry’s most feasible Holistically Operating Cost “HOC” equivalent to Overall Operational Effectiveness. It’s a force which can measure how a firm can use the total of its existing capabilities and competencies for the best vessel’s operation.  

In shipping economy it refers to combined actions of both "Shipscraft” and vessel's operation. The term “Shipscraft” means  the "art" through of which firm's processes, using company's "core competencies", can be readjusted in order to synchronize them and meet the stated "owner's order". These processes are called "Shipscrafting". Reference to the management’s effectiveness force to vessel’s operation or Overall Operational Effectiveness, it was considered to be a non-quantitative concept and therefore not measurable, until today where through the use of Physics it can be measured as a Project – Work (W). In physics, a force is said to do work when it acts on a body so that there is a displacement of the point of application in the direction of the force.  Thus a force does work (W) when it results in movement. In shipping industry it may represent the company’s Overall Operational Effectiveness which lies behind any number and financial result when compared to the market or competing shipping companies. These are forces which are projected in a quadrant on the Project – Work (W) definition given in this work.