Not only does it affect the financial stability of what are in many cases, small to medium sized businesses working to tight profit margins, but late payment of bills can impact significantly on suppliersâ€™ ability to supply ships in the worldâ€™s major ports.
Jens Olsen, the newlyâ€elected President of ISSA, said: â€œShip supply, like any industry, relies on cash flow as its life blood and when owners say they will pay in 30 days and then take 120 days to pay, the impact is felt by our member companies.
â€œThis causes us further concern now we are in the midst of the global downturn and the slump in shipping movements. We are working as an Association to help our members by showing owners the impact their slow paying has on the ability of companies to continue to supply them. Other innovative ideas are under active consideration to get around this problem but it remains our principal cause of concern on behalf of members,â€ he stressed.
ISSA is always encouraging ship owners and managers to look upon their ship suppliers as partners without whom their vessels simply could not operate.
Mr Olsen added: â€œCertainly in the tough economic climate we all find ourselves in at the moment, ship owner, ship manager and ship supplier must foster this â€˜partnership spiritâ€™ to ensure everyone survives until the good times roll around again â€“ which I know they will!â€