Suppliers urge ship owners to be transparent about cash woes

The following is the text of a press release issued by the International Shipsuppliers & Services Association:
(LONDON) — The head of the trade body representing the world’s ship suppliers and chandlers has supported calls by InterManager President Roberto Giorgi for ship owners to be more upfront and transparent with their managers and suppliers when it comes to settling bills.
He will be seeking a meeting with the world ship managers’ body to look at ways both
organisations can work together to ensure that cash flow problems can be minimised.
Jens Olsen, President of the International Shipsuppliers & Services Association (ISSA), said ship managers and ship suppliers “find themselves in the same boat†when it comes to dealing with ship owners’ cash flow problems. Owners should be more upfront with their suppliers if they are experiencing problems as late payment can have disastrous effects on suppliers’ own cash flow and ability to supply ships in the world’s major ports, he warned.
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 has been a focus of attention for the new Presidency of the International Ship Suppliers and Services Association (ISSA).
“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 our members,†Mr Olsen stressed.
“Ship managers and ship suppliers are in the same boat when it comes to relying on efficient cash flow. It is crucially important that ship owners are more open and transparent when they experience cash flow problems because only then can we try and resolve the situation,†he added.

ISSA is always encouraging ship owners and managers to look upon their ship suppliers as partners without whom their vessels simply could not operate.

The problem of the financial crisis and its effects on the shipping industry will be at the centre of the debate at next week’s International Shipsuppliers & Services Association (ISSA) Convention in Istanbul.
By Professional Mariner Staff