Maritime suppliers suffering from rash of overdue payments

The following is the text of a press release issued by the International Ship Suppliers and Services Association:
(LONDON) — Late payment, and in some cases the nonâ€payment of ship supply invoices, is a growing concern for ship chandlers in the world’s ports and is a focus of attention for the new Presidency of the International Ship Suppliers and Services Association (ISSA).

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 suppliers’ ability to supply ships in the world’s major ports.

Jens Olsen, the newlyâ€elected President of ISSA, said: “Ship 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.

“This 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,†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: “Certainly in the tough economic climate we all find ourselves in at the moment, ship owner, ship manager and ship supplier must foster this ‘partnership spirit’ to ensure everyone survives until the good times roll around again – which I know they will!â€


By Professional Mariner Staff